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EXHIBIT 99.1
[LOGO OF CENTRAL GARDEN & PET]
Corporate Office
3697 Mt. Diablo Blvd., Suite 310
Lafayette, CA 94549
(925) 283-4573
Fax (925) 283-4984
FOR IMMEDIATE RELEASE
Contacts: Gregory Reams
Central Garden & Pet
(925) 283-4573
CENTRAL GARDEN & PET RESPONDS TO LITIGATION
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LAFAYETTE, CALIFORNIA, July 6, 2000--Central Garden & Pet Company (NASDAQ:
CENT) today announced that its previously disclosed disputes with The Scotts
Company and Pharmacia Corporation (formerly known as Monsanto Company) have
resulted in litigation.
Scotts filed suit against Central in Federal Court in Ohio to collect the
purchase price of certain lawn and garden products previously sold to Central.
Central has withheld payments to Scotts of approximately $17 million on the
basis of claims it has against Scotts - including amounts due for services and
goods previously supplied by Central and not yet paid for by Scotts. Pharmacia
filed suit against Central in Missouri state court seeking an accounting and
unspecified amounts allegedly due Pharmacia under the four-year alliance
agreement between Central and Pharmacia which expired in September 1999, as well
as damages for breach of contract.
Central believes that the reconciliation of all accounts will not result in
a balance due from Central to Pharmacia. Further, Central believes it has
substantial counterclaims and rights of offset against both Scotts and
Pharmacia, as well as meritorious defenses, and intends to vigorously contest
both suits.
Central Garden & Pet Company is the nation's leading manufacturer,
supplier, and merchandiser of consumer lawn and garden and pet supply products.
Central's proprietary branded products include Pennington Seed(R), Kaytee(R),
TFH(R), Nylabone(R), Zodiac(R),
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and Four Paws(R) pet products, Island(R) aquariums, Matthews(R) Four Seasons
products and Grant's(R) ant control products. Central offers its retail and
branded manufacturing partners a wide array of value-added services proven to
increase sales and profitability, including logistics and distribution support,
inventory management, advertising and promotional programs, in-store
merchandising service, and sales program development. For additional information
on Central Garden & Pet, including access to the Company's SEC filings, please
visit the Company's website at http://www.centralgardenandpet.com.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act
of 1995: The statements contained in this release which are not historical facts
are forward-looking statements that are subject to risks and uncertainties that
could cause actual results to differ materially from those set forth in or
implied by forward-looking statements. These risks are described in the
Company's Securities and Exchange Commission filings, including, without
limitation, the final accounting for all issues between the Company and Monsanto
under the Solaris Agreement, such as the amounts receivable from Monsanto for
cost reimbursements, payments for cost reductions and payments for services; the
amounts payable to Monsanto for inventory; responsibility for obsolete inventory
and for non-payment by Solaris' direct sales accounts; and costs associated with
the realignment of the Company's lawn and garden distribution operations to
reflect anticipated business levels for the fiscal year 2000.
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