WH : to Acquire California's Largest Pork Processor Clougherty, Absorbing Two Reputable Brands into U.S. Operations and a Strategic Entry into the U.S. West Coast Market

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Hong Kong, November 22, 2016 - WH Group Limited ("WH Group" or the "Company"; HKEX: 288), the world's largest pork company, today announced that its subsidiary, Smithfield Foods, Inc. ("Smithfield") has entered into a definitive agreement with Hormel Foods Corporation ("Hormel"). Through this agreement, Smithfield has begun the process to acquire California's Largest Pork Processor Clougherty Packing LLC ("Clougherty") and its two affiliates from Hormel. Upon completion, Clougherty will become an indirect wholly-owned subsidiary of WH Group.

As a leading integrated producer and processor based in California, Clougherty operates under various brands including "Farmer John" and "Saag's Specialty Meats". Clougherty provides a full line of branded pork products and owns extensive sales network in the Southwestern U.S. It processes approximately 7,400 hogs daily and has sales of approximately US$500 million annually. Founded in 1931, Farmer John is the No. 1 bacon and sausage brand in Southern California. Saag's Specialty Meats is a premium brand of deli meat and specialty sausages made without any artificial flavors, colors, fillers, extenders or MSG. Meanwhile, WH Group will acquire two affiliates of Clougherty which operate hog farms in Arizona, California and Wyoming.

networks, as well as actively expand the export business, so as to generate considerable synergies."

"By folding Farmer John into our operations, we are better positioned to take advantage of our long-term strategic growth goals, which includes an increasingly diversified customer and consumer base and greater supply chain efficiency," said Kenneth M. Sullivan, president and CEO of Smithfield Foods. "As we continue this transition and expand our operations, we are proud to welcome these new West Coast employees into our growing Smithfield family."

The purchase price is $145 million, subject to certain post-closing working capital adjustments. The transaction is subject to customary closing conditions, including the receipt of regulatory approvals, and is expected to be completed before the year-end of 2016.

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WH Group Limited is the largest pork company in the world with the top market share in China, the U.S. and some markets in Europe. It owns many well-recognized and trusted brands and stands above the rest with global market leadership in all key segments of the pork value chain, including packaged meats, fresh pork and hog production. The Group conducts its operations through Henan Shuanghui Investment

& Development Co., Ltd., the largest animal protein company in Asia, and Smithfield Foods, the largest pork company in the U.S. For more information, visit www.wh-group.com.

Smithfield Foods, a wholly owned subsidiary of WH Group Limited, is a global food company and the world's largest pork processor and hog producer. In the United States, the company is also the leader in numerous packaged meats categories with popular brands including Smithfield®, Eckrich®, Farmland®, Armour®, Cook's®, John Morrell®, Gwaltney®, Nathan's Famous®, Kretschmar®, Margherita®, Curly's®, Carando® and Healthy Ones®. Smithfield Foods is committed to providing good food in a responsible way and maintains robust animal care, community involvement, employee safety, environmental and food safety and quality programs. For more information, visit www.smithfieldfoods.com and www.smithfieldfoods.com/responsible-operations.

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