Greetings and welcome to the Performance Food Group fourth quarter 2007 earnings conference call. (Operator Instructions) It is now my pleasure to introduce your host John Austin, Senior Vice President and Chief Financial Officer of Performance Food Group. Thank you. Mr. Austin, you may begin.

Thank you, Ryan. Good morning and welcome to the Performance Food Group conference call and webcast to review the company’s announcement earlier today of its financial results for the fourth quarter and full year ended December 29, 2007. This morning I’m joined by Steve Spinner, our President and CEO. Our earnings release was issued this morning and a copy of the information is available on our website at www.PFGC.com. I’ll briefly address our financial highlights for the quarter and year, and then Steve will provide more insight into our operating results and expectations. Certain of the statements we’ll make in this call may be forward-looking statements under the Private Securities Litigation Reform Act of 1995. These statements involve risks and are based upon current expectations. Actual results may differ materially. These risks are more fully described in our press release and our SEC filings. In addition, these remarks may include certain non-GAAP financial measures as defined by SEC Regulation G and a presentation of those most directly comparable GAAP measures and a reconciliation of the non-GAAP measures to the GAAP measures are available on our website. Before I begin with my financial review for the fourth quarter and full year, let me update you briefly on the status of our pending merger with VISTAR Corporation, a portfolio company of The Blackstone Group and Wellspring Capital Management. Since announcing the merger agreement on January 18 2008, we have filed our preliminary proxy statement with the SEC and we and Blackstone have each made our initial Hart-Scott-Rodino filings. A copy of the preliminary proxy statement which includes a copy of the merger agreement is available on the SEC’s website. We will not be discussing the merger in detail on this call, but reiterate that subject to the satisfaction of customary closing conditions,…

Thank you, John. Good morning, everyone. I would like to add some comments regarding our fourth quarter and year-end performance. Three years ago we set out on a core strategy for Performance Food Group that focused on three areas of our business: Growing our street sales; Operational excellence; Category management. We believed these initiatives would drive growth in the most profitable areas of our business, improve the efficiency of our operations, and enhance our financial performance. We have continued to make progress in these initiatives and this progress is reflected in our strong financial performance in both the fourth quarter and the full year. We are also dealing with the challenge of increasing food inflation, growing concerns about the economy, slower industry growth and the need to grow larger as we seek to better leverage our scale and infrastructure. PFG made significant progress in 2007, thanks to the hard work and dedication of our associates in further developing and implementing our core strategies. We continued to realize significant progress in the transformation of our company toward a more standardized, efficient and disciplined organization. Our expanded technologies further improved customer service levels and operational efficiencies. Our sales force continued to drive higher margin sales growth and we have been undertaking additional opportunities to leverage our scale and aggressively manage costs. We have been pleased with our company’s steady progress in real sales growth, which continues to outpace our industry. However, we have not seen any moderation in inflation and we are continuing to watch economic and consumer spending indicators closely. We remain committed to our focus on operational excellence and to improving our levels of service across every part of our company. To support this process, we have made major investments in new systems including the continued rollout of voice selection…

Our first question comes from the line of Chris Routhe - Piper Jaffray.

On prior calls you talked about food inflation and how embedded in that there’s this trade off between sales growth rates and percentage margin, as inflation numbers rise and fall against your expectations. But inflation has been abnormally high now for quite some time. Are you saying that, given the nature of your business, your profit dollars are basically immune from a 6% inflation number on a long-term basis? And if commodity prices don’t cooperate and inflation remains sticky in the back half, you are not concerned about earnings pressure?

First of all, I would not characterize it as immune from inflation pressures by any means. We’ve talked about this actually on the last couple of calls as we are continuing to see inflation up in the mid single-digit range, which is as you’d mentioned, very high historically. We’ve had three plus quarters of that kind of inflation. The comment we were trying to make on the gross profit dollars was more along the lines of given our mix of business and the fact that a lot of multi-unit business is priced on a fee per case, the escalation in the actual food cost, while it will depress your percentage margin, doesn’t have a significant impact on what your gross profit dollars are. So I would definitely not characterize it as immune, but certainly that helps mitigate any of that significant inflation but it is absolutely a challenging environment especially as things are continuing to ramp up.

I think that high inflation just causes a lot of difficulty in looking at your percentage rates. So we tend to look at our actual dollars as well as our per case statistics as opposed to using the percentage rates, because they just get so distorted...

Sometimes, they get distorted, right.

Okay, do you still expect, from what you’ve been reading, some sort of price inflation alleviation in the back half?

The industry is certainly indicating that’s going to happen, we have not seen any indication of any fall off in the inflation.

Have you hedged your fuel for ’08? I think in the last call you suggested that might be done sometime soon?

We’ve been working hard on that issue, to date we’ve hedged approximately 13%, 14% of our fuel and we’re still kind of waiting to see where the price ultimately ends, so to date about 13%, 14%.

Your next question comes from Meredith Adler - Lehman Brothers.

Could you talk about whether this kind of environment -- high inflation and maybe slowing traffic, especially for the casual dining chains that you service -- does this encourage them to stay put with a supplier, or are they more likely to make changes during this environment to find ways to become more efficient? It seems to me those would be conflicts -- don’t mess things up, but on the other hand maybe you need to do something more aggressive?

Meredith, I think that it’s not so much a supplier-based question in terms of the distribution, as much as it is a supplier-based question in terms of the product that they are ultimately serving in the restaurant. So I think when you get high periods of inflation, it causes restaurants to look at the pricing on the menu, it causes them to look at the mix of products on the menu, it causes them to look at the value structure within specific geographies. Obviously we’re on the distribution side but I think what you see is a lot of the restaurant operators very carefully looking at the products that they offer throughout their system, and not so much the means that the products are getting to the restaurants themselves.

Are they indicating that they have some flexibility in terms of their menus? Some of them have very specific images for their customers and they wouldn’t have that much flexibility?

I’m not sure we can really comment on that, because we don’t have enough visibility into that question. Obviously, the restaurants can’t randomly change their menu prices. That takes a long period of time. So, not sure I can give you much more color than that.

Your category management efforts, I think you talked about your own brand penetration going up, but can you talk about whether you are continuing to progress with the rest of your category management effort?

Absolutely. What I said in my comments is we completed about 28 supplier reviews for the year, which was right on target with where we wanted to be. We think that the completion of our financial systems rollout will significantly help move that project along at a much faster clip, but it’s very much a focal point for us and continues to be. We’re making a lot of progress, a lot more of the products that are purchased by our field operating companies fall within our umbrella of national programs, so yes, it’s still a very, very big part of who we are. Quite frankly, it is the single biggest contributor to our gross margin initiatives over the next couple of years.

Thank you. Personally I am sorry you are going private because I was looking for to watching that improvement. Thanks, guys.

Our next question comes from Ajay Jain - UBS.

I really just have one main question, which is related to timing of the merger agreement. At what point do you expect to file an updated version of the proxy statement? When will the final version of the proxy be sent out for shareholder approval? Is that something you can comment on at all at this time?

Thanks, Ajay. That is not something we could comment on. Obviously the preliminary proxy was filed on the 15th of February and we’ll work through that process and you will be the first to see it, I think, but we’ll do that as expeditiously as possible.

So to the extent that there is any update on the status of the financing or anything else, we should assume that will be communicated some point after March 9th?

Again, we won’t comment anywhere in the process, but we’ll file all our public documents as timely as possible.

Your next question comes from Andy Wolf - BB&T. Andy Wolf - BB&T: On the slower street sales growth last couple of quarters, is that more internal? I mean you touched on that you managed the hiring of the sales force down this year. Or is it really just more external, there is just less business out there? Could you actually point to competition?

Andy, I think it’s mostly a trade down that we’re seeing out in the restaurants. I don’t think it’s a factor of our hiring practices as much as it is the general economic condition in the industry. The traffic and therefore the revenue, through each customer that we sell, has struggled. And that’s as a result of a lot of factors. But I think the biggest one is just the trading down effect in terms of frequency and the amount that the average consumer spends each time they go out to eat.

That was something we noticed in the third quarter, I know we talked about it on our third quarter call was that was the first quarter that our multi-unit business had actually grown faster than our street business in 2007, we saw that same trend in the fourth quarter. Andy Wolf - BB&T: On the deal, I just want to check with you, it’s more using the calendar and math. There was a provision in there for 50 days to market the company, I guess for a better bid or different bid. Using the calendar, that would leave about nine days left. First is it a calendar or business day? Nothing about business days was mentioned so I assumed it was calendar. Is there about nine or ten days left to that?

It talks about it in the proxy and I would refer you to that, it expires on March 9th. Andy Wolf - BB&T: That’s what I was looking for. Lastly, other income I noticed a decent amount almost $900,000. Could you mention what that was derived from?

We actually had a small investment in a B2B network. That company was sold and we recognized the gain. That was about $800,000 in other income.

Your next question comes from Ajay Jain - UBS.

Can you give any comment on current sales trends for the first six weeks through this quarter, what you are seeing in both Broadline and Customized? Any comment on the inflation mix as well?

I think generally speaking we are seeing more of the same.

Well thanks, everybody. Performance Food Group has been a company in motion, delivering results, enhancing our core business, and investing in technology and people with an eye toward growth and profitability and I’m proud of what we have accomplished. As we look to the future of PFG, I’m confident that our legacy of success will continue. Thank you and have a great day.