Brazil - Perdigão and Sadia: Association agreement

The Boards of Directors of PERDIGÃO S.A. and SADIA S.A. inform to their shareholders and the market that an association agreement has been executed today by and between both listed companies and the holding company HFF Participações S.A., which will hold the majority of common shares issued by SADIA, in order to allow, by means of the successive transactions described below, the combination of the operations of PERDIGÃO and SADIA.

From the Association will result BRF - Brasil Foods S.A., with head offices in the city of Itajaí, Santa Catarina.