Annual meeting attendees received company update

Fiscal Year 2012 Grid Results Highlight Year

In summarizing fiscal year 2012 results, CEO Stan Linville told USPB producers attending the annual meeting in Kansas City on March 26 that 2012 was another year of records, especially regarding grid premiums. “In total, USPB producers again delivered cattle against nearly 100% of the delivery rights owned by our unitholders and the cattle continued to be very high quality, which earned their owners the highest per head and total premiums in company history,” Linville pointed out.

“Cattle delivered to our Kansas plants set records for yield, percent Black Canyon Premium Reserve and per head natural grid premiums,” he noted. “Overall, we paid out the highest average per head premium of $62.89 and total grid premiums of $51.0 million in company history. Perhaps most impressive was the fact that the bottom 25% of our cattle averaged $18.28 per head above the base cash market price. We remember years when it would have been good to have “all” USPB cattle average that per head premium. “In fiscal year 2012, we also surpassed some impressive totals for our company,” he added. “We delivered our 10 millionth animal to National Beef and passed the $275 million mark for total grid premiums paid last year.”

Linville pointed out new opportunities USPB cattle deliverers will have this year with National Beef’s startup of marketing Non Hormone Treated Cattle (NHTC) into the European Union market. This market, along with new customers for our natural product lines, Naturewell® and NatureSource®, will provide more options for producers to add value to their cattle.”

Former USPB CEO, now consultant to USPB, Steve Hunt and Leucadia National Corporation’s COO, Justin Wheeler spoke to the group about the partnership our companies’ have in the ownership of National Beef. Both described objectives each company had in becoming partners and both expressed confidence in the opportunities this ownership brings to our individual company’s as well as to National Beef.

National Beef COO Terry Wilkerson also addressed the meeting to discuss the company’s fiscal year 2012 results. While calling it a challenging year for National Beef and U.S. beef processors, Wilkerson focused on opportunities they are exploring to broaden the case ready base of business and other value-added product lines and markets including NHTC, natural brands, Kansas City Steak Co., and National Beef Leathers.®

_{USPB Files Fiscal Year 2012 Results}

“U.S. Premium Beef, LLC had income of $2.7 million for the 52 week period ending December 29, 2012,” Scott Miller, USPB CFO, told attendees at this year’s annual meeting on March 26. That compares to income of $167.6 million for the 52 week period ending August 2, 2011.

“A majority of the decrease in net income was driven by lower gross margins at National Beef,” Miller explained. “The balance of the decrease was a result of the sale of a majority of USPB’s ownership interest in National Beef to Leucadia National Corporation. Although net income for the year was down, National Beef's revenues increased compared to the prior period primarily due to increases in boxed beef prices.”®

Bohn, Ramsey

Re-elected to USPB Board
USPB unitholders re-elected Jerry Bohn, Pratt, KS, and Duane Ramsey, Scott City, KS, to the Board of Directors at the company’s annual meeting on March 26. Both Directors will serve three year terms.

Jerry Bohn has served as the General Manager of Pratt Feeders, which has a one-time capacity of 115,000 head in its feedlots in Kansas and Oklahoma, since 1982. He served on USPB’s Board from 2004 through 2007 and was re-elected in 2009. He has previously served as Secretary of USPB’s Board.

Duane Ramsey is Chairman of Security Bancshares Inc., a $300 million multi-bank holding company. In addition, he has had an ownership interest in a commercial feedlot in southwest Kansas, a cow calf operation and was involved in financing numerous USPB unitholders. He has served as a member of the Company’s board since 2006 and is currently serving as Vice Chairman of USPB ’s Board.

The Board of Directors reappointed Mark Gardiner, Chairman, Duane Ramsey, Vice Chairman and Joe Morgan, Secretary.®