As part of the Company’s year end close procedures within the Company’s fruit division, management determined that the costing of inventory, analysis of net realizable value and reconciliation of third party inventories contained certain errors.  Upon discovery of such errors, the Company performed a preliminary manual costing of inventory outside of its operating platform and determined that a writedown of inventory is necessary.  Management has preliminarily determined that a portion of the writedown should have been recognized in previously issued 2007 quarterly reports and that a restatement is required.  As previously reported, the Company and the Audit Committee determined that the interim financial statements for the periods ended March 31, 2007, June 30, 2007 and September 30, 2007, filed on Form 10-Q, can no longer be relied upon.

Management’s preliminary estimate of the total writedown continues to be within the range of $9 to $11 million.  The Company is currently in the process of performing a detailed manual analysis of inventory at this division, however, at this point, the Company is unable to determine the impact of the writedown required within each of the quarters.  The adjustment is expected to reduce inventory, increase cost of sales and reduce net earnings and earnings per share.  Management presently believes that it can complete a detailed analysis no later than March 15, 2008, after which the Company will promptly file amended quarterly reports on Form 10-Q/A.

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