Stockholder's Report First Quarter 2001

November 10, 2000

Dear Stockholder:

Volume growth in the consumer and industrial distribution channels resulted in an increase in net sales and net income. Net sales for the first quarter of fiscal 2001 were approximately $87.2 million compared to approximately $79.5 million last year, or an increase of 9.6%. For the first quarter of fiscal 2001 gross profit margins were 16.5% of net sales versus 15.8% in the first quarter of fiscal 2000. The improved gross profit margin was a direct contributor to increased earnings.

Selling and administrative expenses for the first quarter of fiscal 2001 were 11.9% of net sales compared to 12.3% of net sales for the first quarter of fiscal 2000. Income from operations increased to approximately $4.0 million in the first quarter of fiscal 2001 compared to approximately $2.8 million last year. Higher interest rates in the current fiscal year resulted in an interest expense of approximately $2.1 million in the first quarter of fiscal 2001 compared to approximately $1.9 million in the first quarter of fiscal 2000.

Net income for the first quarter of fiscal 2001 was approximately $1.3 million or 14 cents per share (basic and diluted) versus approximately $.6 million or 7 cents per share (basic and diluted) last year. Positive cash flow in the first quarter of fiscal 2001 enabled your Company to reduce short and long term debt.

We enter the second quarter of fiscal 2001 with expectations of positive results. It is the objective of your Company to strive for and obtain improved operating performance. We will continue to explore all options to accomplish this objective.

At your Annual Stockholders Meeting your current directors were reelected. PricewaterhouseCoopers was appointed as independent accountants. The 1998 Equity Incentive Plan amendment was approved to increase the authorized shares from 350,000 to 700,000.

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