UNITED STATES OF AMERICA,                       Plaintiff,                   v. SMITHFIELD FOODS, INC.,                   Defendant.

| | | | | | | | | | | |

Civil Action No.: 2:04cv526 Judge Robert G. Doumar Date-stamped: November 10, 2004

STIPULATION

It is stipulated by and between the undersigned parties, by their respective attorneys, that:

1. The parties consent that the Court may file and enter a Final Judgment in the form attached to this Stipulation, on the Court's own motion or on the motion of any party at any time, and without further notice to any party or other proceedings;
2. In the event the proposed Final Judgment is not entered pursuant to this Stipulation, this Stipulation shall be of no effect whatsoever and the making of this Stipulation shall be without prejudice to any party in this or any other proceeding;
3. This Stipulation and the Final Judgment to which it relates are for settlement purposes only and do not constitute an admission by Defendant in this or any other proceeding that Section 7A of the Clayton Act, 15 U.S.C. § 18a, or any other provision of the law has been violated; and
4. The entry of the Final Judgment in accordance with this Stipulation settles, discharges, and releases any and all claims of Plaintiff, the United States, for civil penalties pursuant to Section 7A(g)(1) of the Clayton Act, 15 U.S.C. § 18a(g)(1), against Defendant and any officer, director, employee or trustee of Defendant, and any affiliates or subsidiaries of Defendant, for failure to comply with Section 7A of the Clayton Act, 15 U.S.C. § 18a, in connection with Defendant's 1998, 1999 and 2000 acquisitions of voting securities of IBP, Inc.

FOR THE DEFENDANT:

_______________/s/________________ Thomas G. Slater, Jr. (VSB No. 05915) HUNTON & WILLIAMS LLP Riverfront Plaza, East Tower 951 East Byrd Street Richmond, Virginia 23219-4074 Telephone: (804) 788-8475 Facsimile: (804) 788-8218

Gregory N. Stillman (VSB No. 14308) HUNTON & WILLIAMS LLP 500 East Main Street, Suite 1000 Norfolk, Virginia 23510 Telephone: (757) 640-5300 Kevin J. Arquit SIMPSON THACHER & BARTLETT LLP 425 Lexington Avenue New York, New York 10017-3954 Telephone: (212) 455-2000

Dated: November 8 , 2004

FOR THE PLAINTIFF:

_______________/s/________________ C. Alexander Hewes (VSB No. 04922) United States Department of Justice Antitrust Division 325 Seventh Street, NW, Suite 500 Washington, DC 20530 Telephone: (202) 305-8519 Facsimile: (202) 616-2441 J. Richard Doidge Jessica K. Delbaum David A. Blotner Caroline E. Laise Trial Attorneys, Antitrust Division

_______________/s/________________ J. Bruce McDonald Deputy Assistant Attorney General J. Robert Kramer II Director of Operations Roger W. Fones Chief, Transportation, Energy & Agriculture Section Donna N. Kooperstein Assistant Chief, Transportation, Energy & Agriculture Section

Dated: November 8 , 2004