Gold Kist Inc. Reports Second Quarter and First Half Fiscal 2006 Results.

ATLANTA -- Gold Kist Inc. (NASDAQ:GKIS) today reported financial results for the second quarter and six months ended April 1, 2006. For the second quarter of fiscal 2006, the Company reported a net loss of $16.2 million, or $(0.32) per diluted share, compared with net income of $38.7 million, or

For the first six months of fiscal 2006, the Company reported a net loss of $13.7 million, or $(0.27) per diluted share, compared with net income of $42.9 million, or $0.85 per diluted share, earned in the first six months of fiscal 2005. Net sales for the six months ended April 1, 2006, declined 4.0 percent to $1.08 billion compared with $1.12 billion reported for the six months ended April 2, 2005.

Commenting on the results, John Bekkers, president and chief executive officer, said, "The trends established in the first quarter of fiscal 2006 continued during the second quarter. Average broiler prices declined 9.4 percent in the second quarter and 5.7 percent for the first half of fiscal 2006 compared with the same periods in fiscal 2005. A drop in consumption in export markets due to avian influenza concerns contributed to greater domestic supply and lower prices.

"Processing costs increased due to additional pounds processed and on a per-pound basis due to higher utilities, freight and packaging costs. Feed costs for the six months ended April 1, 2006, were slightly higher than in the comparable period of fiscal 2005 due to the additional pounds produced, partially offset by lower soybean meal ingredient costs. Average prices for corn for the first half of fiscal 2006 were 1.3 percent higher and soybean meal was 5.8 percent lower compared with the first half of fiscal 2005.

"We will continue to focus on increasing the percentage of value-added products we sell, which accounted for 57 percent of our total sales for the six months ended April 1, 2006. We also will continue to focus on growing our private-label business, and will continue to work on becoming more efficient, improving our performance and containing our costs. While we do not expect our strategies to completely offset the effects of the oversupply of protein and lower market prices, we believe our strategies and the strength of our balance sheet, will serve to lessen the impact and position the Company to recover more quickly and to be stronger when conditions improve."

Gold Kist Inc. will hold a conference call to discuss this press release today, May 9, 2006, at 11 a.m. Eastern time. Investors will have the opportunity to listen to a live Internet broadcast of the conference call through the Company's Web site at www.goldkist.com or through www.earnings.com. To listen to the live call, please go to the Web site at least 15 minutes early to register and download and install any necessary audio software. For those who cannot listen to the live broadcast, an Internet replay will be available shortly after the call and continue through June 9, 2006. If Internet access is unavailable, you may participate on the live call by telephone by dialing (800) 257-2101. The confirmation number for this call is 11059894.

This news release contains "forward-looking statements" as defined in the federal securities laws regarding Gold Kist's beliefs, anticipations, expectations or predictions of the future, including statements relating to the Company's strategy of enhancing its value-added product lines, focusing on cost controls, becoming more efficient, improving its performance and growing the Company's private label business, and relating to pricing trends and processing costs. These forward-looking statements involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated in such forward-looking statements include market conditions for finished and value-added products including competitive factors and the supply and pricing of alternative meat proteins; effectiveness of our sales and marketing programs; disease outbreaks affecting broiler production, demand and/or marketability of our products; uncertainties relating to fluctuations in the cost and availability of raw materials, such as feed ingredients; risks associated with effectively executing risk management activities; changes in the availability and relative costs of labor and contract growers; effectiveness of our capital expenditures and other cost-savings measures; contamination of products, which can lead to product liability and product recalls; access to foreign markets together with foreign economic conditions; acquisition activities and the effect of completed acquisitions; pending or future litigation; the ability to obtain additional financing or make payments on our debt; regulatory developments, industry conditions and market conditions; and general economic conditions; as well as other risks described under "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended October 1, 2005, and subsequently filed Quarterly Reports on Form 10-Q . Gold Kist undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

About Gold Kist

Gold Kist is the third largest chicken company in the United States, accounting for more than 9 percent of chicken produced in the United States in 2005. Gold Kist operates a fully-integrated chicken production business that provides processing, purchasing and marketing services. Gold Kist's production operations include nine complexes located in Alabama, Florida, Georgia, North Carolina and South Carolina. For more information, visit our Web site at www.goldkist.com.

GOLD KIST INC.
                      CONSOLIDATED BALANCE SHEETS
                        (Amounts in Thousands)
                              (Unaudited)

                                               October 1,    April 1,
                                                 2005          2006
                                               ---------    ---------
ASSETS
Current assets:
  Cash and cash equivalents                    $ 153,561    $ 125,184
  Receivables, net                               125,389      109,714
  Inventories, net                               233,681      205,265
  Deferred income taxes, net                      11,506       12,442
  Other current assets                            26,873       38,365
                                               ---------    ---------
    Total current assets                         551,010      490,970
Investments                                       10,747       11,262
Property, plant and equipment, net               286,515      317,581
Deferred income taxes, net                        25,133       25,133
Other assets                                      52,284       60,969
                                               ---------    ---------
                                               $ 925,689    $ 905,915
                                               =========    =========

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
  Notes payable and current maturities of
    long-term debt                             $   1,518    $   1,446
  Accounts payable                                87,486       83,072
  Accrued compensation and related expenses       27,292       17,406
  Income taxes payable                            34,850       13,897
  Accrued insurance costs                         39,458       49,253
  Other current liabilities                       36,105       33,022
                                               ---------    ---------
    Total current liabilities                    226,709      198,096
Long-term debt, less current maturities          143,714      142,927
Accrued pension costs                             54,450       61,472
Accrued postretirement benefit costs               3,961        3,181
Accrued insurance costs                           32,600       44,654
Other liabilities                                 13,527       15,188
                                               ---------    ---------
    Total liabilities                            474,961      465,518

Stockholders' equity:
  Preferred stock                                   --           --
  Common stock                                       511          510
  Additional paid-in capital                     399,619      403,384
  Accumulated other comprehensive loss           (61,265)     (61,265)
  Retained earnings                              112,246       98,562
  Common stock held in treasury                     (383)        (794)
                                               ---------    ---------
    Total stockholders' equity                   450,728      440,397
                                               ---------    ---------
                                               $ 925,689    $ 905,915
                                               =========    =========

                            GOLD KIST INC.
                 CONSOLIDATED STATEMENTS OF OPERATIONS
           (Amounts in Thousands, Except Per Share Amounts)
                              (Unaudited)

                       Three Months Ended        Six Months Ended
                      ---------------------   -----------------------
                       April 2,    April 1,     April 2,     April 1,
                        2005         2006        2005         2006
                      ---------   ---------   ----------   ----------
Net sales volume      $ 570,809   $ 532,365   $1,122,767   $1,077,725
Cost of sales           477,554     535,217      981,676    1,048,180
                      ---------   ---------   ----------   ----------
  Gross profit
    (loss)               93,255      (2,852)     141,091       29,545
Distribution,
  administrative and
  general expenses       33,076      24,891       58,042       51,904
Conversion expenses        --          --          1,418         --
                      ---------   ---------   ----------   ----------
  Net operating
    income (loss)        60,179     (27,743)      81,631      (22,359)
                      ---------   ---------   ----------   ----------

Other income (expenses):
  Interest and
    dividend income       1,890       1,379        2,715        2,950
  Interest expense       (6,213)     (3,878)     (13,303)      (8,267)
  Debt prepayment
    interest and
    write-off of fees
    and discount           --          --        (10,016)        --
  Miscellaneous, net      1,284       1,446        2,986        2,601
                      ---------   ---------   ----------   ----------
    Total other
      expenses, net      (3,039)     (1,053)     (17,618)      (2,716)
                      ---------   ---------   ----------   ----------
  Income (loss)
    before income
    taxes                57,140     (28,796)      64,013      (25,075)
Income tax expense
  (benefit)              18,471     (12,569)      21,151      (11,391)
                      ---------   ---------   ----------   ----------
  Net income (loss)   $  38,669   $ (16,227)  $   42,862   $  (13,684)
                      =========   =========   ==========   ==========

Net income (loss) per
  common share:
    Basic             $    0.77   $   (0.32)  $     0.86   $    (0.27)
                      =========   =========   ==========   ==========
    Diluted           $    0.76   $   (0.32)  $     0.85   $    (0.27)
                      =========   =========   ==========   ==========

Weighted average
  common shares
  outstanding:
    Basic                49,972      50,116       49,972        50,079
                      =========   =========   ==========    ==========
    Diluted              50,749      50,116       50,470        50,079
                      =========   =========   ==========    ==========