MGP Ingredients, Inc. Files Supplemental Proxy Materials and Sends Letter to Stockholders

MGP Ingredients, Inc. Files Supplemental Proxy Materials and Sends Letter to
Stockholders

ATCHISON, Kan., July 12, 2013 (GLOBE NEWSWIRE) -- MGP Ingredients, Inc.
(Nasdaq:MGPI) (the "Company") announced today that it filedsupplemental proxy
materials with the Securities and Exchange Commission ("SEC") in connection
with its 2013 Annual Meeting of Stockholders.

The independent directors of the Board also sent a letter urging stockholders
to reject the Cray Group's dissident nominees and proposals.

The independent directors recommend that stockholders vote for the election of
the highly qualified nominees of MGP on the WHITE proxy card.

Included below is the full text of the letter to MGP stockholders, which can
also be found at www.mgpingredients.com:

  Dear Fellow Stockholder:

  You have an important decision to make about the future of MGP. The decision
  is clear: support MGP's continued strong progress as a public company
  focused on the interests of all stockholders OR allow Karen Seaberg through
  her influence over the Cray Group to use MGP as her personal empire at the
  expense of common stockholders like you.

                                      
Support a Strong, Vibrant MGP          Reject Karen Seaberg's Self-Serving
                                       Agenda
● MGP's independent directors are      ● Mrs. Seaberg's proposals are bad for
working to serve the best interests of common stockholders and only serve her
all MGP stockholders                   interests
● MGP is doing well and on the right   ● She is trying to seize control of MGP
path to increasing profitability       for personal gain without fairly
● MGP's experienced, high quality      compensating common stockholders
management team is vital to MGP's      ● She has no plan for MGP and would
future                                 derail MGP's strong progress and good
● MGP's independent directors all have governance
a wealth of experience to help ensure  ● Mrs. Seaberg's hostile actions are
MGP's success                          unnecessary and wasting MGP resources
VOTE THE WHITE PROXY CARD TODAY        DISREGARD ANY GOLD CARDS
                                      

          YOUR INDEPENDENT DIRECTORS ARE ACTING IN THE BEST INTERESTS
                            OF ALL MGP STOCKHOLDERS

  As at every public company, the Board of Directors has a fiduciary duty to
  serve the best interests of all stockholders. We, the six independent
  directors, take our duties very seriously. Based on our average tenure of
  more than 12 years on MGP's Board and our extensive collective business
  experience, we have a deep understanding of MGP's challenges and
  opportunities. Along with MGP's talented management team, we are working
  hard to ensure MGP continues to increase profitability and stockholder
  value.

  Our independence as directors is especially critical given the Cray family's
  dominant ownership in MGP. They are beneficial owners of 92% of MGP's
  preferred stock and 27.5% of the common stock. Through their preferred stock
  ownership, the family can elect five of the nine directors on the Board. Two
  family members already serve on the Board.

  Prior generations, including Cloud L. Cray, Sr., MGP's founder, and his
  sons, Cloud L. "Bud" Cray, Jr. and Richard Cray, helped MGP grow during its
  early years, publicly listing it in 1988. Many of us worked with Cloud, Bud
  and Richard when they were leading the Company, and we respected their
  decision years ago to professionalize the management of the Company and
  ensure their own family voting processes would represent the interests of
  all stockholders, not just the Cray family.

  Unfortunately, Cloud's granddaughter, Mrs. Karen Seaberg (already a member
  of MGP's Board), is now trying to undo their hard work and good intentions.
  Through her hostile proxy contest, she is attempting to seize control of MGP
  for her own benefit at the expense of common stockholders like you.

  All of MGP's independent directors (including those of us who were
  previously elected by the Cray family) strongly oppose Mrs. Seaberg's
  self-serving agenda.

     MRS. SEABERG IS ATTEMPTING TO SEIZE CONTROL OF MGP FOR PERSONAL GAIN
               WITHOUT FAIRLY COMPENSATING COMMON STOCKHOLDERS

  Mrs. Seaberg's proposals and nominations would clear a path to her asserting
  full dominance over MGP, effectively turning MGP into a quasi-private
  company without compensating common stockholders.

  *Mrs. Seaberg's Proposals Would Enable Her to Control the Board.Three of
    Mrs. Seaberg's proposals are clearly aimed at giving her the ability to
    dismiss and elect directors when she wants.She proposes:

    *De-staggering the Board so all directors are elected each year and can
      be removed without reason, putting the Board at Mrs. Seaberg's whim each
      year.
    *Allowing stockholders with 10% or more of outstanding preferred or
      common stock to call special meetings of MGP, essentially handing this
      authority to the Cray Group as the only 10%+ stockholder.
    *Filling vacancies on the Board exclusively by stockholder vote, instead
      of allowing the Board to do so as is more common, which gives Mrs.
      Seaberg more chances to pack the Board, and in the aggregate, a path to
      replace any directors disloyal to her.

  *Hand-Picked Nominees Would Reduce Board Independence. Mrs. Seaberg is
    attempting to replace (with one of her hand-picked nominees) MGP's
    Chairman John R. Speirs, who is an independent member of the Board elected
    by common stockholders.As Chairman, Mr. Speirs draws on his wealth of
    experience developed through over 35 years in senior leadership positions
    across leading companies in the food and alcohol industries including,
    Diageo PLC, Pillsbury and Lever Brothers.Mr. Speirs' expertise has been a
    critical factor in setting the strategy that is driving MGP's
    success.Together with Mr. Speirs, our strong, independent Board has the
    necessary and relevant expertise that is critical to ensuring that the
    interests of all stockholders are represented within a family-dominated
    company like MGP.

  *Highly Unusual, Unnecessary Vote Proposal Designed to Manipulate MGP.Mrs.
    Seaberg's proposal seeking confidential voting at our annual meeting is
    both unprecedented and unorthodox.It is another clear attempt to
    manipulate the governance practices of MGP for the benefit of her own
    personal agenda.Well before Mrs. Seaberg introduced this proposal,
    stockholders were able to vote confidentially and MGP adopted strict
    policies of non-retaliation against employees for stockholder voting.The
    effect of Mrs. Seaberg's proposal would be to restrict MGP's ability to
    solicit votes while she would have no such restriction. We believe it is
    blatantly unfair.

  Mrs. Seaberg's proxy contest is costly and unnecessary. As MGP directors,
  Mrs. Seaberg and her father, Bud (also an MGP director), had ample
  opportunities to voice any concerns with MGP and advocate for change within
  the established structure of the Board. Instead, after voting in favor MGP's
  nominees and proposals, they abruptly revoked their votes the night before
  the Annual Meeting of Stockholders (May 23, 2013) and launched a hostile
  proxy battle, which is usually an avenue taken by stockholders with no
  boardroom presence.

       MGP IS ON THE RIGHT PATH TO DELIVERING SIGNIFICANT, SUSTAINABLE
       STOCKHOLDER VALUE – DON'T LET MRS. SEABERG DERAIL MGP'S PROGRESS

  MGP is executing a carefully designed plan to grow profits and deliver
  long-term value to all stockholders. To mitigate the negative impact of the
  significant commodity volatility on the business and generate greater cash
  flow, our Board and management team have refocused MGP on a higher value
  sales mix, developed a more effective supply chain and increased
  productivity across our asset base.

  By implementing this strategy, MGP is well positioned to capitalize on the
  strong growth of the distilled spirits market, particularly the surge in
  popularity among high-end and super-premium whiskeys. In 2012, U.S. whiskey
  sales increased by 3.6%—higher than growth for vodka, gin and tequila and
  the largest such increase in 30 years^1. Our focus on expanding our presence
  in higher margin businesses like premium distilled spirits, as well as
  nutritional health innovations, while also ensuring we remain a low cost
  white goods producer is generating real results:

  *The first quarter of 2013 marked MGP's fourth consecutive quarter of
    growth in income from operations, reaching $1.2 million compared to a loss
    of $2.3 million in the first quarter of 2012.
  *Full year 2012 net sales rose 20% through execution of the existing Board
    and management's strategic plan to focus on higher margin manufactured
    products.
  *Gross profit margins more than doubled from 3% in 2011 to 8% in 2012
    reflecting the greater profitability of the premium product line.

  With respect to Mrs. Seaberg, we do not believe she has the experience or
  business acumen to lead MGP. Beyond her MGP Board membership, the extent of
  her business experience has been working as an executive travel agent, local
  restaurateur and being involved in community charity organizations.

       REVIEW OF STRATEGIC ALTERNATIVES INCLUDES WIDE RANGE OF OPTIONS

  We are confident that our strategy will continue to drive revenue and cash
  flow generation leading to higher profits and value for all stockholders.
  However, one constant in the business world is the need to continually
  evolve. To ensure we are exploring all avenues to maximizing value, the
  independent members of the Board are conducting a strategic review of
  alternatives. Contrary to Mrs. Seaberg's misleading statements, this does
  not necessarily mean the Company will be sold. The Board is reviewing a wide
  range of alternatives. The process may take several months to complete, and
  it is critical that the Company continue to progress and execute at the
  highest levels during this time.

              WE ARE COMMITTED TO ATCHISON AND OTHER COMMUNITIES
                            WHERE WE LIVE AND WORK

  Through her various interviews with local media, Mrs. Seaberg claims MGP is
  not committed to the communities where it operates. That is a blatant
  misrepresentation of the facts. Several directors and most of MGP's
  management team live in Atchison. The MGP team works hard to support the
  communities where we live and work, whether through donations to local
  charities, engagement with community leaders and civic causes, or growth of
  the business itself. Under our stewardship, dating back to before Mrs.
  Seaberg joined the Board, MGP has invested over $27 million into expanding
  its facilities in Atchison. This multi-year investment, which included the
  construction of a new Corporate Office and Technical Innovation Center,
  added significantly to the local economy and reflects our commitment to the
  community. For as long as we remain directors, we plan to keep MGP
  headquartered in Atchison.

           MRS. SEABERG HAS NO PLAN AND IS MISLEADING STOCKHOLDERS

  Mrs. Seaberg has not offered an alternative plan other than asserting
  dominance over MGP at the expense of your interests and terminating
  management who dare to act independently of her. She desires control for
  control's sake. Mrs. Seaberg is relying on incomplete and inaccurate
  statements we believe to mislead stockholders.

  *Legal Uncertainty Regarding the Validity of the Cray Voting Trust is
    Paralyzing MGP's Governance Process.MGP believes actions of members of
    the Cray Group, acting as trustees with control over MGP's preferred
    stock, are invalid.MGP recently cited two of the three trustees
    responsible for voting the preferred stock held by the Cray Group's Voting
    Trust as unfit to serve due to their poor health.Subsequent changes to
    the Trust by Mrs. Seaberg are further evidence of her attempt to
    manipulate governance of the Company to her advantage.

    *Also, the Company believes Mrs. Seaberg did not satisfy the MGP stock
      ownership requirements to qualify as a trustee of the Voting Trust at
      the time she replaced her father as a trustee.
    *The simple fact is that the dysfunction and invalidity of the family's
      Voting Trust is impairing MGP's ability to execute even the most
      standard governance processes leaving the Company with no choice but to
      seek a ruling from the court to enable the Company to carry out normal
      governance and business operations.
    *MGP has filed litigation in the District Court of Johnson County to seek
      a declaratory judgment regarding this serious issue so that the Company
      has assurance that the majority of the preferred stock now held by the
      Voting Trust is being properly represented.

  *Contradictory Statements on the Company's Business Plan.While criticizing
    management in the Cray Group's proxy materials, elsewhere Mrs. Seaberg
    acknowledges the merit of management's strategy.She has been quoted in
    the press stating, "We believe in the strategy (of the Company). It's
    good."^2 We agree. However, supporting a strategy but not the management
    team that created and is executing that strategy simply doesn't make
    sense.

  *Incomplete Facts on Management Compensation.The Cray Group's proxy
    materials and Mrs. Seaberg's media interviews criticize MGP management's
    compensation in direct conflict with the fact that Mrs. Seaberg and Mr.
    Cray, as directors of the Company, voted in favor of the current
    compensation of management not just once, but twice, the most recent vote
    being on July 11, 2013. Mrs. Seaberg and Mr. Cray previously voted as
    directors in favor of the compensation of Mr. Speirs as lead director of
    the Board. Also, Mrs. Seaberg fails to acknowledge that her husband earned
    a similar level of compensation as Mr. Newkirk when Mr. Seaberg served as
    CEO. The Board's responsibility is to ensure that management compensation
    is aligned with value creation. The Board works for stockholders, all
    stockholders.

        RETURN YOUR WHITE CARD TO SUPPORT YOUR INDEPENDENT BOARD AND
                            MGP'S STRONG PROGRESS

  Mrs. Seaberg appears to be trying to steamroll over MGP's stockholders in a
  self-serving effort to purge disloyalty to her and reassert family control.
  However, as you know, the duty of any public company Board is to serve the
  best interests of all stockholders. That is our commitment to you, and we
  take it seriously. We appreciate your support of a strong, independent Board
  at MGP and the progress we are making delivering value to all stockholders.

  You may have received a WHITE proxy card from the Company related to our May
  23, 2013 annual meeting, which was adjourned and will be rescheduled in due
  course.If you voted that WHITE card already, you do not need to take any
  further action.If you have not voted the WHITE card yet, we encourage you
  to do so today.

  Thank you again for your support,

/s/ John R. Speirs  /s/ Michael Braude   /s/ John E.      /s/ Gary
                                           Byom              Gradinger
John R. Speirs      Michael Braude       John E. Byom     Gary Gradinger
Chairman            Director             Director         Director
                                                       
/s/ Linda E.        /s/ Daryl R.                         
Miller               Schaller
Linda E. Miller     Daryl R. Schaller                    
                     Ph.D.
Director            Director                             

  The Independent Directors of the Board

___________________________________________

^1 The Distilled Spirits Council of the United States
^2 June 19^th interview in the Atchison Globe

____________________________________________________________________________________

   If you have questions about how to vote your shares, or need additional
                                 assistance,
   please contact the firm assisting us in the solicitation of proxy votes:

                          Innisfree M&A Incorporated

                 Stockholders Call Toll-Free: (888) 750-5834

                    Banks and Brokers Call: (212) 750-5833

                                      

                                  IMPORTANT

                       Vote the White Proxy Card today!

____________________________________________________________________________________

                                      

FORWARD-LOOKING STATEMENTS SAFE HARBOR

This letter contains forward-looking statements as well as historical
information. Forward-looking statements are usually identified by or are
associated with such words as "intend," "plan," "believe," "estimate,"
"expect," "anticipate," "hopeful," "should," "may," "will," "could,"
encouraged," "opportunities," "potential" and/or the negatives of these terms
or variations of them or similar terminology. 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. All such forward-looking statements are subject to
certain risks and uncertainties that could cause actual results to differ
materially from those contemplated by the relevant forward-looking statement.
Investors should not place undue reliance upon forward-looking statements and
the Company undertakes no obligation to publicly update or revise any
forward-looking statements. Important factors that could cause actual results
to differ materially from our expectations include, among others: (i)
disruptions in operations at our Atchison facility or Indiana Distillery, (ii)
the availability and cost of grain and fluctuations in energy costs, (iii) the
effectiveness of our hedging strategy, (iv) the competitive environment and
related market conditions, (v) the ability to effectively pass raw material
price increases on to customers, (vi) the viability of the Illinois Corn
Processing, LLC ("ICP") joint venture and its ability to obtain financing,
(vii) our ability to maintain compliance with all applicable loan agreement
covenants, (viii) our ability to realize operating efficiencies, (ix) actions
of governments, (x) and consumer tastes and preferences. For further
information on these and other risks and uncertainties that may affect our
business, including risks specific to our Distillery and Ingredient segments,
see Item 1A. Risk Factors of our Annual Report on Form 10-K for the year ended
December 31, 2012.

Important Additional Information

MGP Ingredients, Inc., its directors, and certain of its officers are
participants in the solicitation of proxies from MGP stockholders in
connection with the Company's 2013 Annual Meeting of Stockholders. Important
information concerning the identity and interests of these persons is
available in the definitive proxy statement that MGP filed with the SEC on
April 11, 2013 as subsequently supplemented, including the proxy supplement
dated July 12, 2013.

The definitive proxy statement, any other relevant documents and other
materials filed with the SEC concerning MGP are available free of charge at
www.sec.gov and www.mgpingredients.com. Stockholders should carefully read the
definitive proxy statement, including supplements thereto, before making any
voting decision.

CONTACT: Investors & Analysts:
         George Zagoudis, Investor Relations
         913-360-5441 or george.zagoudis@mgpingredients.com
        
         Media:
         Shanae Randolph, Corporate Director of Communications
         913-367-1480 or shanae.randolph@mgpingredients.com

MGP Ingredients, Inc. logo