THOMASVILLE, Ga., June 26 /PRNewswire-FirstCall/ -- Flowers Foods (NYSE: FLO) officials today announced that the company has executed a definitive agreement to acquire ButterKrust Bakery in Lakeland, Fla. The transaction is subject to regulatory approval under the Hart-Scott-Rodino Act and other conditions. Pursuant to the stock purchase agreement, Flowers has agreed to purchase all of the issued and outstanding capital stock of the holding company of ButterKrust for cash. (LOGO: http://www.newscom.com/cgi-bin/prnh/20080530/CLF007LOGO ) ButterKrust Bakery, which operates profitably on annualized sales of approximately $70 million, is a privately-owned business with one bakery in Lakeland that employs 368 people. ButterKrust sells its fresh breads and rolls throughout Florida. The company sells its products under the Country Hearth, Rich Harvest, and Sunbeam brands as well as store brands. George E. Deese, Flowers Foods' chairman of the board, chief executive officer and president said of the acquisition, "ButterKrust Bakery will bring additional production capacity to help our company better serve the Florida market. In the past 25 years, Florida's population has grown from 9.7 million to more than 18 million and it is predicted Florida will have more than 23 million residents by 2020. Flowers Foods' growth in Florida has been strong and we expect that to continue. This acquisition should serve our production capacity needs in the state for the foreseeable future." Deese noted that the 250,000-square-foot Lakeland bakery is highly efficient with the latest in bakery technology. "ButterKrust has long been known as a fine bakery that produces outstanding baked goods. We will be pleased to welcome the ButterKrust team to Flowers once the acquisition is completed," Deese said. The bakery will continue to operate under the same talented team following the completion of the acquisition. Doug Wimberly, president of ButterKrust, said, "I have always admired and respected Flowers Foods and its team, so I am very pleased with the prospect of partnering with Flowers. This will be a really good partnership, helping both ButterKrust and Flowers to better serve our customers in Florida and to continue growing our business." ButterKrust Bakery was established in 1916 in Lakeland, Fla. It is a single bread and bun plant with annual sales of about $70 million. ButterKrust serves all of the Florida market through supermarket and institutional accounts. The company's brands include Sunbeam, Rich Harvest, and Country Hearth brands. More information about ButterKrust Bakery can be found at http://www.bkbusa.com/ Headquartered in Thomasville, Ga., Flowers Foods, with annual sales of over $2.02 billion, is one of the nation's leading producers and marketers of packaged bakery foods for retail and foodservice customers. Flowers operates 36 bakeries that produce a wide range of bakery products marketed throughout the Southeastern, Southwestern, and mid-Atlantic states via an extensive direct-store-delivery network and nationwide through other delivery systems. Among the company's top brands are Nature's Own, Nature's Own Whitewheat, Cobblestone Mill, Sunbeam, Blue Bird, and Mrs. Freshley's. For more information, visit http://www.flowersfoods.com/ Statements contained in this press release that are not historical facts are forward-looking statements. All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ from those projected. Other factors that may cause actual results to differ from the forward-looking statements contained in this release and that may affect the company's prospects in general include, but are not limited to, (a) competitive conditions in the baked foods industry, including promotional and price competition, (b) changes in consumer demand for our products, (c) the success of productivity improvements and new product introductions, (d) a significant reduction in business with any of our major customers including a reduction from adverse developments in any of our customer's business, (e) fluctuations in commodity pricing and (f) our ability to achieve cash flow from capital expenditures and acquisitions and the availability of new acquisitions that build shareholder value. In addition, our results may also be affected by general factors such as economic and business conditions (including the baked foods markets), interest and inflation rates and such other factors as are described in the company's filings with the Securities and Exchange Commission. http://www.newscom.com/cgi-bin/prnh/20080530/CLF007LOGO http://photoarchive.ap.org/ DATASOURCE: Flowers Foods CONTACT: Investors, Marta J. Turner, Executive VP, Corporate Relations, of Flowers Foods, +1-229-227-2348; or Media, Mary A. Krier, Vice President, Communications, of Flowers Foods, +1-229-227-2333; or Doug Wimberly, President of ButterKrust Bakery, +1-863-682-1155 Web site: http://www.flowersfoods.com/ http://www.bkbusa.com/

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