CONTACT: Steve Pickman at
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FOR IMMEDIATE RELEASE:  MGP INGREDIENTS TO EXPAND
                        KANSAS CITY FACILITY



     ATCHISON,  Kan., March 12, 2003--The Board of Directors of MGP Ingredients,
Inc.  (MGPI/Nasdaq)  has approved plans for a $3.8 million  expansion project at
the  company's  plant in Kansas  City,  Kan.  Expected to be completed by March,
2004, the expansion  will involve the  installation  of additional  equipment to
extend the company's  line of Wheatex  textured wheat proteins and other protein
and  starch-based  ingredients.  Approximately  half  of the  project's  cost is
expected  to be offset  by funds  provided  under a  previously  announced  U.S.
Department  of  Agriculture  (USDA)  program  to  support  the  development  and
production of value-added wheat proteins and starches.

     "This expansion is indicative of the progress we are making in building our
specialty  ingredients  business,"  said  Ladd  Seaberg,   president  and  chief
executive officer. "Because current customer growth and demand should exceed the
plant's  capacity  for some of our  products  in the  next  fiscal  year,  it is
necessary to take this measure now to be well positioned for growth."

     MGPI acquired the Kansas City  facility in February,  2001. It was formerly
owned by Thompson's Nutritional Technology,  Inc. "This acquisition has become a
wonderful asset for the company," Seaberg said. "In a relatively short period of
time, it has substantially  strengthened our capabilities to meet demands in the
marketplace  while also giving us greater  flexibility in the types of goods and
services we can offer our customers," he added.

     The company produces several varieties of its Wheatex product at the plant.
Ranging in size from small  flakes to large  chunks,  Wheatex is used to improve
the  textural  quality  and  flavor  profile of  vegetarian  and  extended  meat
products.  A separate  portion of the Kansas City  facility is  dedicated to the
production of MGPI's  Polytriticum  lines of edible and  non-edible  wheat-based
polymers  that can be used in the  manufacture  of pet treats and  biodegradable
items. Enhancements will also be made to that section of


                                     -more-

ADD 1--MGP INGREDIENTS TO EXPAND KC FACILITY


the  plant as part of the  expansion  project.  Additionally,  approximately  $1
million  of the total  projected  cost of the  expansion  is  earmarked  for the
purchase  and  installation  of new  equipment to support  ongoing  research and
development at the plant. With some modifications, this equipment can be used to
supplement Wheatex production, according to Seaberg.

     "We're  very  excited  to  move  forward  with  this  project,"  said  Mike
Trautschold, executive vice president of marketing and sales. "The investment in
research and development  will help address  opportunities  presented by current
and future customers. It enables us to work significantly on broadening our line
of Wheatex  products,  which can be produced to  replicate  the  appearance  and
texture of multiple meat, fish and poultry products. The same holds true for our
Polytriticum  resins,  which continue to experience growing demand,  mainly from
manufacturers of pet treats and natural pet chews."

     The USDA program to support the  development  of  value-added  proteins and
starches was implemented in June,  2001.  Administered  by the USDA's  Commodity
Credit  Corporation,  it was granted in lieu of an extended  quota on imports of
foreign wheat gluten,  the protein portion of wheat flour.  Over the life of the
program, which is scheduled to end May 31, 2003, MGP Ingredients is eligible for
approximately  $25.6 million of the program total of $40 million.  For the first
12 months of the  program,  approximately  $17.3  million was  allocated  to the
company.  The remaining $8.3 million was allocated to the company in July, 2002.
The funds must be used for capital,  research,  marketing and promotional  costs
related to value-added wheat proteins and starch products.

     In November,  2002, the company  completed an $8.3 million expansion at its
Atchison,  Kansas plant. This expansion  involved the installation of additional
processing and drying  equipment for the production of specialty  wheat proteins
for  bakery,  pasta and noodle and  related  food  markets,  both  domestic  and
foreign.  The company also recently completed  enhancements to equipment it uses
to produce a number of natural  protein  and  starch-based  ingredients  for the
personal care market.

     This news release contains forward-looking statements as well as historical
information. Forward-looking statements are identified by or are associated with
such  words  as  "intend,"  "believe,"   "estimate,"   "expect,"   "anticipate,"
"hopeful,"  "should," "may" and similar  expressions.  They reflect management's
current  beliefs  and  estimates  of  future  economic  circumstances,  industry
conditions,  company performance and financial results and are not guarantees of
future performance. The forward-looking statements are based on many assumptions
and factors,  including those relating to grain prices,  gasoline prices, energy
costs,   product  pricing,   competitive   environment  and  related   marketing
conditions, operating efficiencies, access to capital, actions of governments or
government officials and actions of insurers.  Any changes in the assumptions or
factors  could produce  materially  different  results than those  predicted and
could impact stock values.

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