Stockholder's Report First Quarter 2000

November 11, 1999

Dear Stockholder:

Fiscal 2000 took off on a positive note with an increase in net sales and net income over the first quarter of fiscal 1999. Net sales for the first quarter of fiscal 2000 were approximately $79.5 million compared to approximately $73.8 million in the first quarter of fiscal 1999. Basically all distribution channels contributed to this growth. The corresponding gross profit margin was approximately 15.8% of net sales for the first quarter of fiscal 2000 versus approximately 15.5% of net sales for the first quarter of fiscal 1999. The gross profit margin increase is encouraging based upon the performance of the Fisher brand and the operating results of fiscal 1999.

Selling and administrative expenses were approximately 12.3% of net sales for the first quarter of fiscal 2000 and exceeded the approximately 11.9% of net sales in the first quarter of fiscal 1999. The increase resulted from additional promotional spending in the current year which was necessary to drive sales volume. Income from operations increased to approximately $2.8 million for the first quarter of fiscal 2000 from approximately $2.7 million in fiscal 1999. As a result of reduced working capital requirements, interest expense decreased to approximately $1.9 million for the first quarter of fiscal 2000 from approximately $2.3 million in the first quarter of fiscal 1999.

Net income for the first quarter of fiscal 2000 was approximately $.6 million or 7 cents per share (basic and diluted) as compared to approximately $.3 million or 3 cents per share (basic and diluted) for the first quarter of fiscal 1999 . Net cash provided from operations less investing activities was positive and was used to pay down long-term and current debt.

Your Company exits its fiscal first quarter and enters into its fiscal second quarter with positive momentum. The organizational changes and improvements in the preceding fiscal year should positively contribute to fiscal 2000.

At your Annual Stockholders Meeting, Matt Valentine, Governor Jim Edgar, John W. A. Buyers, Mike Valentine, Tim Donovan, Jeffrey Sanfilippo and I were elected as directors. PricewaterhouseCoopers LLP was appointed as independent accountants.

Jasper B. Sanfilippo
Chairman and Chief Executive Officer

Jasper B. Sanfilippo Chairman and Chief Executive Officer The statements of Jasper B. Sanfilippo in this letter are forward looking. These forward-looking statements are based on the company's current expectations and involve risks and uncertainties. Consequently, the company's actual results could differ materially. Among the factors that could cause results to differ materially from current expectations are: (i) sales activity for the company's products for the remainder of the fiscal year; (ii) changes in the availability and costs of raw materials for the production of the company's products; (iii) fluctuations in the value of the company's inventories of pecans, walnuts or other nuts due to fluctuations in the market prices of these nuts; (iv) the company's ability to lessen the negative impact of competitive pressures by reducing its selling prices and increasing sales volume while at the same time maintaining profit margins by reducing costs; (v) the time and occurrence (or non-occurrence) of other transactions and events which may be subject to circumstances beyond the company's control.

Consolidated Statements of Operations & Balance Sheets