An opportunity to capture significant returns; partner with successful company

USPB Announces Plan to Sell an Ownership Interest in National Beef

U.S. Premium Beef, LLC (USPB) on December 5 announced that the owners of National Beef have entered into a Membership Interest Purchase Agreement with Leucadia National Corporation (Leucadia) under which Leucadia will acquire approximately 79% of the outstanding ownership interests in National Beef. The operations and management structure of National Beef will remain unchanged.

“This transaction will enable us to address the liquidity desires of USPB ’s diverse producer ownership base while maintaining our highly successful cattle supply system and a sizable investment in beef processing,” Steve Hunt, CEO of USPB, said in making the announcement. “Leucadia is a diversified holding company engaged in a variety of businesses; its broad and deep experience will enhance our partnership. Our goals for the future of National Beef are aligned and we look forward to a long and successful partnership with this company.”

The transaction requires member approval. “We have met with many of USPB’s unitholders since our announcement and are encouraged by the response we’ve received from them,” Hunt noted. “If we receive member approval, we anticipate closing this transaction on December 30.

“It is important that our unitholders, as well as Associate producers who market cattle through our company, understand that it is

...continued on page 2

Did You Know...

üAs a reminder, Age and Source Verified (ASV) cattle projections are required from feedyards who want to receive USPB’s ASV premiums. ASV premiums are based on market conditions and will be adjusted accordingly as conditions warrant. Please call our office at 866-877-2525 when you place ASV cattle on feed to ensure that your cattle have a reservation in our program. USPB’s ASV premium is $35 through March 2012. It will be adjusted to a $25 per head floor for April 2012 and a $20 per head floor for May and June.

üIf you have delivery rights you do not plan on using in fiscal year 2012 and would like USPB to help you get them leased to other producers, please call our office at 866-877-2525.w

Fiscal Year 2011 Full of Record Results

In recapping fiscal year 2011 results, CEO Steve Hunt told USPB producers attending the annual meeting in Kansas City on December 7 that our company is positioned well to compete in the beef processing industry today, but we will be positioned even better in the future if our members approve the sale of a percentage of National Beef to Leucadia National Corporation.

USPB’s financial results during fiscal year 2011 strongly support that observation. “Our company again set a record for net income attributable to USPB of $167.6 million compared to $161.0 million in fiscal year 2010, which was also a record,” Hunt noted. “USPB’s net income per combined Class A and Class B unit was $222.47 compared to $213.89 in fiscal year 2010.

“We paid out a record $174.6 million in cash distributions in fiscal year 2011.

...continued on page 2