<Page> [MICHAEL FOODS LETTERHEAD] CONTACT: MARK D. WITMER ASSISTANT TREASURER (952) 258-4906 FOR IMMEDIATE RELEASE MICHAEL FOODS REPORTS SECOND QUARTER 2002 FINANCIAL RESULTS MINNEAPOLIS, July 25 -- Michael Foods, Inc. today reported 2002 financial results for the second quarter and first half ended June 30, 2002. Earnings before interest, taxes, depreciation and amortization (EBITDA) for the three months ended June 30, 2002 were $38.9 million compared to $37.1 million in 2001's second quarter, an increase of 5%. Net sales for the three months ended June 30, 2002 were $289.8 million compared to $295.1 million, a decrease of 2%. EBITDA for the six months ended June 30, 2002 was $74.8 million compared to $68.8 million in 2001's first half, an increase of 9%. Net sales for the six months ended June 30, 2002 were $568.2 million compared to $570.7 million, a decrease of less than 1%. Commenting on the second quarter results, Chairman, President and Chief Executive Officer Gregg A. Ostrander said, "Three of our divisions roughly matched year-ago EBITDA levels, while the fourth, Dairy Products, had another strong period, with EBITDA up 62%. A combination of solid volume growth and improved ingredient costs paced the Dairy Products results. We had notable volume growth in our UHT specialty carton and creamer lines." Addressing the other three divisions, Ostrander added, "Egg Products results were comparable to 2001 second quarter results and reflected a weak egg market, and higher feed costs, year-over-year. Strong results from egg substitutes and precooked items offset weakness in the industrial segment, especially for short shelf-life liquid eggs. Potato Products results rose slightly, reflecting steady sales and earnings growth in both the retail and foodservice segments. Lastly, Refrigerated Distribution EBITDA results were off slightly in the quarter. Margins in the key cheese category stabilized, largely offsetting the impact of weaker sales. Divisional sales declined due to butter deflation, customer store closures and a cheese industry which saw most of its growth come from private labels." Ostrander concluded, "We ended the quarter with a strong cash position as a result of our continued success in generating free cash flow." Unaudited segment data follows (in thousands): <Page> <Table> <Caption> ------------------------------------------------------------------------- Egg Refrigerated Dairy Potato Products Distribution Products Products Corporate Total ------------------------------------------------------------------------- COMPANY - ---------------------------------------------- THREE MONTHS ENDED JUNE 30, 2002: External net sales $161,887 $57,203 $53,123 $17,540 N/A $289,753 EBITDA* 29,254 2,811 4,944 3,281 (1,368) 38,922 THREE MONTHS ENDED JUNE 30, 2001: External net sales $162,582 $64,431 $51,821 $16,275 N/A $295,109 EBITDA* 29,296 2,877 3,054 3,120 (1,292) 37,055 SIX MONTHS ENDED JUNE 30, 2002: External net sales $317,074 $120,208 $96,302 $34,598 N/A $568,182 EBITDA* 57,552 5,541 7,816 6,759 (2,901) 74,767 PREDECESSOR - ---------------------------------------------- THREE MONTHS ENDED MARCH 31, 2001: External net sales $163,529 $61,185 $35,328 $15,585 N/A $275,627 EBITDA* 24,424 3,955 2,013 2,966 (1,613) 31,745 </Table> * as defined in our senior credit facility 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 M. G. Waldbaum Company, Papetti's Hygrade Egg Products, Inc., Crystal Farms Refrigerated Distribution Company, Kohler Mix Specialties, Inc. and Northern Star Co. Consolidated statements of earnings follow: <Page> MICHAEL FOODS, INC. CONSOLIDATED STATEMENTS OF EARNINGS FOR THE THREE MONTHS ENDED JUNE 30, (000'S, UNAUDITED) <Table> <Caption> 2002 2001 --------- --------- Net sales $289,753 $295,109 Cost of sales 235,549 244,855 ---------- ---------- Gross profit 54,204 50,254 Selling, general & administrative expenses 29,826 30,294 ---------- ---------- Operating profit 24,378 19,960 Interest expense, net 12,332 16,241 ---------- ---------- Earnings before income taxes 12,046 3,719 Income tax expense 4,730 2,050 ---------- ---------- NET EARNINGS $ 7,316 $ 1,669 ========== ========== Depreciation & amortization $ 13,764 $ 15,603 ========== ========== EBITDA, as defined in our senior credit facility $ 38,922 $ 37,055 ========== ========== Selected Balance Sheet Information: June 30, 2002 December 31, 2001 ------------- ----------------- Cash and equivalents $ 38,970 $ 27,660 ========== ========== Accrued interest 10,448 10,619 ========== ========== Total debt, including current maturities 530,037 553,094 ========== ========== </Table> CERTAIN ITEMS IN THIS RELEASE MAY BE FORWARD-LOOKING STATEMENTS, WHICH ARE MADE IN RELIANCE UPON THE SAFE HARBOR PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. SUCH FORWARD-LOOKING STATEMENTS ARE SUBJECT TO NUMEROUS RISKS AND UNCERTAINTIES, INCLUDING CHANGES IN DOMESTIC AND INTERNATIONAL ECONOMIC CONDITIONS. SPECIFIC RISKS AND UNCERTAINTIES INCLUDE HOW THE CASH MANAGEMENT ACTIVITIES OF THE COMPANY, ITS CUSTOMERS AND ITS SUPPLIERS, ALONG WITH COMPANY GROWTH PLANS, AFFECT WORKING CAPITAL COMPONENTS. ALSO, THE COMPANY FACES NORMAL, AND AT TIMES NOTABLE, VARIANCES IN THE SUPPLY OF, AND DEMAND FOR, EGGS, GRAIN FEED INPUTS, AND BUTTERFAT-RELATED PRODUCTS, WHICH CAN RESULT IN PRICING AND PROFIT MARGIN VOLATILITY FOR CERTAIN EGG PRODUCTS, AND CHEESE, BUTTER AND OTHER DAIRY ITEMS. AS A RESULT, THE COMPANY'S ACTUAL FINANCIAL RESULTS COULD DIFFER MATERIALLY FROM THE RESULTS ESTIMATED BY, FORECASTED BY, OR IMPLIED BY THE COMPANY IN SUCH FORWARD-LOOKING STATEMENTS. # # # 07-25-02