Contingent Interest Uncertainty Removed
           Federal Tax Deferral to be Paid Over Next Three Years

HOUSTON, Aug. 25, 2009 (GLOBE NEWSWIRE) -- Sysco Corporation (NYSE:SYY) announced today that it has agreed with the Internal Revenue Service to a payment schedule related to a disputed tax deferral for its Baugh Supply Chain Cooperative.

 * Sysco agrees to three year payment schedule related to deferred tax
   liability.
 * Sysco has sufficient liquidity to pay tax and interest on agreed
   schedule.
 * Agreement will result in a modest increase in first quarter fiscal
   2010 earnings.

"Reaching agreement on this matter at this point in time is an appropriate and a favorable development for Sysco because it removes the uncertainty regarding the ultimate resolution of our tax deferral," said Bill DeLaney, Sysco's chief executive officer. "Our current cash levels, anticipated future cash flow from operations, and current access to capital are more than sufficient to cover this payment schedule. We are now better positioned to take advantage of investment opportunities that present themselves in the future and to deliver value to our stakeholders."

Payment Schedule

 * $104 million by August 31, 2009.
 * $212 million on September 15, 2009.
 * $212 million in annual payments to be paid quarterly over three
   years commencing October 15, 2009 through June 15, 2012.

While the majority of the $952 million in scheduled payments over the next three years represents the payment of taxes previously deferred and provided for, also included in the August 2009 payment is $41 million representing prior interest the majority of which is not deductible. The company had previously accrued interest during the period of appeals and as a result of this agreement, Sysco expects to record an approximate $30 million after tax income benefit, or $0.05 per diluted share, in its first quarter financial results for fiscal 2010.

The Cooperative, in place since 2002, administers a consolidated product procurement program to develop, obtain and ensure consistent quality products. This agreement finalizes the federal tax matters related to the Cooperative.

Additional details regarding the impact of this agreement are contained in the company's Form 10-K for the year ended June 27, 2009 as filed with the Securities and Exchange Commission.

Conference Call & Webcast

Sysco management will host a conference call on Tuesday, August 25, 2009 at 10:00 a.m. EDT to discuss the agreement.