ATLANTA, Jan. 31 /PRNewswire-FirstCall/ -- Cagle's Inc. (Amex: CGL.A) reported a loss of ($1.77) million or ($.38) per diluted share for the third quarter of fiscal year 2008 compared with a loss of ($3.16) million or ($.67) per diluted share for the third quarter of fiscal 2007. For the first nine months of fiscal 2008 net income was $1.14 million or $.24 per diluted share as compared with a net income of $1.58 million or $.34 per diluted share for the same period of fiscal 2007. Reported earnings for the first nine months of fiscal 2007 included a pretax profit of $18 million from the sale of the Company's minority interest in a joint venture.

Operating income for the quarter ended December 29, 2007 was a loss of ($2.5) million compared to a loss of ($4.7) million for the third quarter of fiscal 2007. Nine month operating income reflected a profit of $2.8 million versus a loss of ($11.3) million for the same period last year.

Third quarter revenues increased 18.7% to $66.9 million and were up 24.4% to $214.8 million for the first nine months of fiscal 2008 as poultry markets responded to increasing feed ingredient cost.

For our third quarter Cagle's cost of sales increased 14.5% to $65.8 million as compared to the previous year's third quarter results reflecting feed ingredient cost increases of $3.9 million. Fiscal year to date cost of sales increased 15.8% to $200.9 million with feed ingredient cost increasing $14.2 million over the same period last year.

Looking forward, cost of sales and earnings continue to be very unpredictable as poultry markets, feed ingredients, energy, packaging and freight costs react to global supply and demand pressures and uncertainty in world financial markets.



    Cagle's Inc.

    /s/ J. Douglas Cagle

    J. Douglas Cagle
    Chairman, CEO

Forward-Looking Statements:

Statements contained in this press release that state the intentions, hopes, beliefs, anticipations, expectations or predictions of the future of Cagle's Inc. and its management are forward looking statements. It is important to note that the actual results could differ materially from those projected. Factors that could cause actual results to differ materially from those project in such forward-looking statements include: additional outbreaks of avian influenza or other diseases affecting the production performance and/or marketability of the Company's poultry products; matters affecting the poultry industry in general, including fluctuations in the commodity prices of feed ingredients and chicken; contamination of our products leading to product liability claims and recalls; exposures to risks related to property damage and injuries to persons for which insurance is limited and potentially inadequate; management of our cash resources, particularly in light of our substantial leverage; trade barriers; changes in laws or regulations affecting our operations as well as competitive factors and pricing pressures; and the impact of uncertainties of litigations as well as other risk factors.





                         Cagle's, Inc. & Subsidiary
                      Consolidated Statements of Income
                     (In Thousands, except per share data)

                            Three Months Ended          Nine Months Ended
                       December 29,   December 30,  December 29,  December 30,
                           2007           2006         2007          2006

    Net Sales                $66,920      $56,374     $214,849     $172,669
    Costs and Expenses:
    Cost of Sales             65,774       57,454      200,961      173,560
    Selling & Delivery and
     General &
     Administrative            3,650        3,595       11,172       10,522
    Other General Expenses       (19)          (2)         (41)         (65)
    Total Costs and Expenses  69,405       61,047      212,092      184,017

    Operating Income (Loss)   (2,485)      (4,673)       2,757      (11,348)

    Other Income(Expense):
    Interest Expense            (345)        (408)      (1,069)      (1,675)
    Gain On Sale Of
     Unconsolidated
      Affiliate                    -            -            -       18,323
    Other Income, Net             40          148          122          311
    Total Other Income
     (Expense), net             (305)        (260)        (947)      16,959

    Equity In Earnings Of
     Unconsolidated Affiliates     -            -            -        1,317
    Income Before Income
     Taxes                    (2,790)      (4,933)       1,810        6,928

    Income Taxes Provision    (1,021)      (1,776)         668        5,348
    Net Income               $(1,769)     $(3,157)      $1,142       $1,580
    Net Income Per Common
     Share                    $(0.38)      $(0.67)       $0.24        $0.34



                                 Cagle's Inc.
                   Condensed Consolidated Balance Sheet
                              (In Thousands)

    ASSETS                                  December 29, 2007   March 31, 2007

    Current Assets                                   $42,625        $41,139

    Investments in Affiliates                              -              -

    Other Assets                                       3,905          3,607

    Property, Plant, and Equipment (net)              39,155         39,273

    TOTAL ASSETS                                     $85,685        $84,019

    LIABILITIES & STOCKHOLDER'S EQUITY

    Current Maturities of Long-term Debt              $2,225         $2,098
    Trade Accounts Payable                            14,765         13,581
    Other Current Liabilities                          7,600          6,519
    Total Current Liabilities                         24,590         22,198

    Long-Term Debt                                    14,783         16,467

    Other Non-current Liabilities                          -              -

    Total Stockholders Equity                         46,312         45,354

    TOTAL LIABILITIES & STOCKHOLDERS EQUITY          $85,685        $84,019

SOURCE Cagle's Inc.