MGP INGREDIENTS, INC.

CONSOLIDATED STATEMENT OF EARNINGS

(unaudited)
Three Months Ended September 30		   
(Dollars in thousands, except per share)                  2004                  2003   
NET SALES
$    68,878    
  
$    57,054   		   
COST OF SALES      63,804             55,367      
GROSS PROFIT       5,074              1,687      
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES       4,882              3,698      
OTHER OPERATING INCOME         286              6,090      
INCOME FROM OPERATIONS         478              4,079      
OTHER INCOME (EXPENSE)            
      OTHER INCOME (NET)         309                281      
      INTEREST EXPENSE        (306)              (279)      
INCOME BEFORE INCOME TAXES         481              4,081      
PROVISION FOR INCOME TAXES         190              1,611      
NET INCOME    $     291         $     2,470      
OTHER COMPREHENSIVE LOSS        (313)               (30)      
                                                
COMPREHENSIVE INCOME (LOSS)         (22)               2,440      
BASIC EARNINGS PER COMMON SHARE    $    0.02          $    0.16      
DILUTED EARNINGS PER COMMON SHARE    $    0.02          $    0.16      


Weighted average shares outstanding-Basic 15,932,913    15,332,404   
Weighted average shares outstanding-Diluted 16,648,019    15,371,474   


CONSOLIDATED BALANCE SHEETS

(unaudited)
Sept. 30
June 30
  
(unaudited)
Sept. 30
June 30
(Dollars in thousands) 2004   2003      (Dollars in thousands) 2004   2003  
ASSETS
  
  
  
LIABILITIES AND
  
  
            STOCKHOLDERS' EQUITY      
CURRENT ASSETS          CURRENT LIABILITIES      
     Cash and cash equivalents $   4,771 $   6,488    Current maturities of long-term debt $  10,382 $   3,201
     Receivables      31,907     34,243    Accounts payable    8,655     10,576
     Inventories      39,172     32,775    Accrued expenses    5,395      7,815
            Deferred income     12,183       12,598
     Prepaid expenses 3,081 828    Income taxes payable 2,129 2,423
     Deferred income taxes 2,090 2,090                                        
     Income taxes receivable              -              -          Total Current Liabilities $  38,744 $  36,613
Total Current Assets 81,021 76,424            
PROPERTY AND EQUIPMENT, At Cost 300,571 296,377            
     Less accumulated depreciation   190,464 187,280    LONG-TERM DEBT 18,821 12,561
   110,107 109,097    POST-RETIREMENT BENEFITS 5,985 5,977
Insurance Receivable 1,425 1,425    DEFERRED INCOME TAXES 12,777 13,677
OTHER ASSETS              91              91    STOCKHOLDERS' EQUITY 116,317 118,209
   $  192,644 $  187,037       $ 192,644 $ 187,037