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Michael Foods, Inc. news release of July 1, 1996

Contact:  Mark D. Witmer, Assistant Treasurer,  Michael Foods, Inc.
          (612) 546-1500

FOR IMMEDIATE RELEASE

MICHAEL FOODS AND PAPETTI'S HYGRADE EGG PRODUCTS TO MERGE
- ---------------------------------------------------------

Minneapolis, July 1 -- Michael Foods, Inc. (Nasdaq:MIKL) and Papetti's Hygrade
Egg Products, Inc. and its affiliates ("Papetti's") today announced they have
entered into an  agreement whereby Michael Foods will purchase Papetti's in a
cash and stock transaction valued at approximately $85 million.  Additionally,
Michael Foods is to assume approximately $28 million of debt held by Papetti's.
Papetti's, based in Elizabeth, New Jersey, is the world's largest further
processed egg products producer with annual sales in excess of $275 million.
The net sales of Michael Foods after the merger are expected to exceed $900
million annually.

The merger, which has been approved by the Michael Foods Board of Directors,
will be accounted for as a purchase.  Completion of the transaction is subject
to finalization of the companies' due diligence reviews, various regulatory
approvals and certain other conditions.  It is expected that the transaction
will close this fall.  The pending merger previously announced between Michael
Foods and North Star Universal, Inc. is now likely to close some time after the
third quarter due to the need to provide information regarding the Papetti's
transaction to the governmental bodies reviewing the North Star merger.

Commenting on the Papetti's merger, Gregg A. Ostrander, President and CEO of
Michael Foods, said, "We are excited about Papetti's joining forces with
Michael Foods.  This is a strategic combination which will result in the
creation of a strong, broad egg products team able to globally serve customers'
needs in virtually any egg product category.  The depth and breadth of our
combined product development, processing, customer service and sales
capabilities will be unparalleled in the egg products industry.  With combined
egg products sales of approximately $500 million, we expect to see significant
synergies emerge in the years ahead, which will further enhance our growth
prospects and strengthen our leadership in bringing value-added products to the
market."

Arthur N. Papetti, President of Papetti's, added, "Our family has a long and
proud history in the egg products business.  Aligning our resources with those
of Michael Foods will enhance our combined leadership in egg products.  The
combined operations of the Papetti's and M. G. Waldbaum egg products businesses
will be able to aggressively explore growth avenues that would be more
difficult to pursue independently.  We look forward to becoming a member of the
Michael Foods family of companies and to capitalizing on the opportunities that
lie ahead."

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