Despite adverse weather conditions in the Midwest, increased overall acreage and superior seed quality from the 1999 harvest will enable Pennington Seed Inc., the world's largest packager of grass seed and a subsidiary of Central Garden & Pet Company (NASDAQ: CENT), to meet growing demands of retailers nationwide with premium turfgrass varieties at reduced prices. Heavy rains in June dampened the Kentucky-31 tall fescue crop, yet a sufficient harvest of 120 million pounds of the company's signature seed will lower wholesale prices to 60-70 cents per pound. Plentiful supplies of perennial and annual ryegrass varieties will also produce 5-10 percent lower prices industry-wide.

"A cold and very wet winter left crops in poor condition on March 31," says Mike Baker, senior vice president for Pennington's Oregon division. "However, ideal spring weather saved these crops and has generated a solid harvest of Pennington varieties in the Northwest."

Due to minimal carryover crops and very dry spring weather in Canada, Washington and Idaho production areas, the supply of creeping red fescues and Kentucky bluegrasses will be down. However, supplies should be sufficient to meet retailer demand. Product delivery will be delayed by at least a week due to the weather, and prices are expected to increase over last year's harvests - 25-30 percent for creeping red fescue and up to 60 percent for Kentucky bluegrass.

"The traditional Northern turfgrass varieties of bluegrass and fine fescues will be in tight supply this year. However, due to a strong commitment to supplying improved, top-yielding turfgrasses, we will be able to offer consumers attractive prices on perennial ryegrasses and turf-type tall fescues," Baker notes. "The market has responded accordingly to small harvests across the seed industry of Kentucky bluegrass and creeping red fescue with significant price increases in these varieties - making current pricing of improved turf-type ryegrasses and tall fescues very attractive to the retailer and consumer."

This year's bermudagrass harvest will be down slightly from last year, producing slightly higher wholesale prices.

Founded in 1945 by Brooks Pennington Sr., Pennington Seed is today owned by Central Garden & Pet Company. A leading manufacturer and distributor of lawn, garden, turf care, forage grasses, wild game and bird seed products, Pennington is also the largest packager of grass seed in the world. Central Garden & Pet reported 1998 revenues of more than $1.29 billion, with more than 3,900 employees and thousands of dealers nationwide.

Company news release
N2060