Michael Foods Invests in European Egg Products

With expectations of enhancing its position as a world leader in value-added egg products, Michael Foods, Inc. recently completed investments in a Belgium-based egg products producer and a commercialized phospholipid extraction process.

The company completed the purchase of a 25% position in Belovo S.A., a 29-year-old firm that specializes in the production of customized dried egg products, lysozyme extractions and certain nutraceutical egg products. The investment will provide Michael Foods with access to specialized, proprietary technologies developed by Belovo for ultimate use in the United States.

Michael Foods, Inc. has also acquired a 50% interest in The Lipid Company S.A. ("TLC"), a firm formed recently by Belovo's founding shareholders for the purpose of commercializing a phospholipid extraction process.

TLC will build a facility for the extraction of phospholipids from egg yolks in Wiltz, Luxembourg. The plant is expected to be operational in early 2000. Currently, phospholipids are used mainly by customers as an ingredient in the production of infant formulas and seniors' dietary supplements. Other commercial uses for phospholipids are being explored. TLC currently produces phospholipids at a pilot plant within the Belovo facility in Bastogne, Belgium.

Michael Foods, Inc. is a diversified food processor and distributor with particular interests in egg products, refrigerated grocery products, specialty dairy products and refrigerated potato products. Principal subsidiaries include Papetti's Hygrade Egg Products, Inc., M. G. Waldbaum Company, Crystal Farms Refrigerated Distribution Company, Kohler Mix Specialties, Inc. and Northern Star Co.