The accompanying financial statements were prepared by the management of Hormel Foods Corporation which is responsible for their integrity and objectivity. These statements have been  prepared in accordance with U.S. generally accepted accounting  principles appropriate in the circumstances and, as such, include amounts that are based on our best estimates and judgments. Hormel Foods Corporation has developed a system of internal controls designed to assure that the records reflect the trans- actions of the company and that the established policies and  procedures are adhered to. This system is augmented by well- communicated written policies and procedures, a strong program of internal audit, and well-qualified personnel. These financial statements have been audited by Ernst & Young LLP, an independent registered public accounting firm, and their report appears on this page. Their audit was conducted in accor- dance with the standards of the Public Company Accounting Oversight Board (United States) and includes a review of the com- pany’s accounting and financial controls and tests of transactions. The Audit Committee of the Board of Directors, composed solely of outside directors, meets periodically with the independent audi- tors, management, and the internal auditors to assure that each  is carrying out its responsibilities. Both Ernst & Young LLP and our internal auditors have full and free access to the Audit Committee, with or without the presence of management, to discuss the results of their audit work and their opinions on the adequacy of internal controls and the quality of financial reporting. Please refer to Exhibits 31.1 and 31.2 attached to the company’s Annual Report on Form 10-K for the fiscal year ending October 30, 2004, for certifications required under Section 302 of the Sarbanes-Oxley Act of 2002. In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position  of Hormel Foods Corporation at October 30, 2004, and  October 25, 2003, and the consolidated results of its operations and its cash flows for each of the three years in the period ended October 30, 2004, in conformity with U.S. generally accepted accounting principles. We conducted our audits in accordance with the standards of  the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial state- ments are free of material misstatement. An audit includes exam- ining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a  reasonable basis for our opinion. We have audited the accompanying consolidated statements of financial position of Hormel Foods Corporation as of October 30, 2004, and October 25, 2003, and the related consolidated  statements of operations, changes in shareholders’ investment, and cash flows for each of the three years in the period ended October 30, 2004. These financial statements are the responsibil- ity of the company’s management. Our responsibility is to express an opinion on these financial statements based on our audits. To the Shareholders and Board of Directors Hormel Foods Corporation Austin, Minnesota independent registered  public accounting firm financial statements report of  responsibility for  Joel W. Johnson Chairman of the Board and Chief Executive Officer Michael J. McCoy Executive Vice President and Chief Financial Officer Minneapolis, Minnesota November 22, 2004 30 Hormel Foods Corporation