Performance Food Group Announces Redemption Of Outstanding Convertible Subordinated Notes

Richmond, Va. (Sept. 17, 2004) - Performance Food Group (Nasdaq/NM:PFGC) announced today it has called for redemption on October 18, 2004, all of its outstanding 5½% convertible subordinated notes due October 16, 2008 (the "Notes"). There are $201.25 million in aggregate principal amount of Notes currently outstanding.

Holders will have their Notes redeemed at a redemption price of $1,031.429 per $1,000 principal amount of Notes, consisting of the principal amount and $31.429 in redemption premium. Accrued and unpaid interest to the date of redemption will be paid to record Holders of the Notes as well. Interest will thereafter cease to accrue on the Notes.

Alternatively, until the close of business on October 15, 2004, Holders of the Notes may convert their Notes into shares of Performance Food Group Company common stock at a conversion price of $32.95 per share, or 30.349 shares of Performance Food Group Company's common stock per $1,000 principal amount of the Notes. On September 16, 2004, the closing price of Performance Food Company's common stock on the Nasdaq Stock Market's national market was $22.94 per share. Notice of Redemption is being mailed to all registered Holders of the Notes. The Company expects that it will record a pre-tax charge in the fourth quarter of 2004 in the aggregate amount of approximately $10.1 million ($0.13 per diluted share) to reflect the payment of the redemption premium and write off of unamortized debt issuance costs.

Bob Sledd, Chairman and Chief Executive Officer noted, “We believe that this decision provides a capital structure which supports our growth while providing longer term earnings accretion.”

The Company expects to fund the redemption with borrowings under the Company’s revolving credit facility.

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