Cray Group Responds to Delay in MGP Ingredients, Inc. Annual Meeting

     Cray Group Responds to Delay in MGP Ingredients, Inc. Annual Meeting

PR Newswire

ATCHISON, Kan., Aug. 26, 2013

ATCHISON, Kan., Aug. 26, 2013 /PRNewswire/ --The Cray Group expressed its
extreme disappointment withan order issued on August 22 by the Kansas Court
of Appeals which has the effect of delaying for at least sixty days the MGP
Ingredients, Inc. Annual Meeting of Stockholders that had been scheduled to be
held on August 23, 2013, at 10:00 a.m. The members of the Cray Group include
Bud Cray, Karen Seaberg, Laidacker M. Seaberg, Cray Family Management LLC and
Cray MGP Holdings LP.

We believe the action of MGP's CEO, Tim Newkirk, and its other directors, John
Speirs, Michael Braude, John Byom, Gary Gradinger, Linda Miller, and Daryl
Schaller (the "Other Directors") in seeking this appeal and delaying the
Annual Meeting has thwarted the will of the stockholders and is motivated
solely by entrenchment. The shareholders had spoken resoundingly through their
votes as of the date of the scheduled Annual Meeting that they wanted a change
in leadership, executive compensation, and governance. The preliminary
tabulation we received from our proxy solicitor on the day of the scheduled
meeting, which does not include votes by registered holders or revocations
that were received by MGP, showed that John Bridendall, our nominee for
election by MGP's Common Stockholders, had received more than 10.9 million
votes out of a total ofapproximately 12.9 million votes cast, which was more
than five times the number of votes that John Speirs had received. This
preliminary tabulation also showed that our solicitation to vote against the
advisory proposal on executive compensation resulted in a vote of more than
80% of the votes cast being cast against approval of the MGP executive
compensation program, and that all of our governance reform proposals, other
than confidential voting, had received votes constituting more than a majority
of the outstanding shares of common stock. While we appreciate that votes
could technically have been revoked or changed prior to the closing of the
polls at the Annual Meeting if it had been held as scheduled on August 23, we
believe it is highly improbable this would have changed the anticipated
results and that the CEO and the Other Directors sought to delay that outcome
and thereby disenfranchise stockholders.

The Cray Group's campaign will continue until the Company holds the Annual
Meeting which stockholders are entitled to have as a matter of law. We plan to
pursue all of our available legal remedies to seek a prompt reconvening of the
Annual Meeting.

We originally estimated our expenses for undertaking this proxy contest to be
$400,000. As a result of the needless litigation and responses to soliciting
material by MGP, our estimated expenses have risen to $650,000. MGP estimated
that its expenses for the proxy contest would be $500,000, and we expect that
the actual expenses will be much greater than that amount, which we call upon
MGP to disclose. This wasteful expense is on top of the more than $3,000,000
in severance payments and benefits granted by the Other Directors to the CEO
and three other officers in response to this proxy contest.

In light of the compelling mandate from stockholders reflected in these votes,
we urge the CEO and the Other Directors to cease their efforts to delay the
Annual Meeting. We believe that any continued efforts on the part of the
Company to further delay the Annual Meeting through litigation are in direct
conflict with this mandate and constitute a waste of corporate assets, as the
stockholders receive no benefit from the continuation of a dispute which has
clearly been resolved by this shareholder mandate. We urge MGP stockholders to
communicate their strong desire for a prompt reconvening of the Annual Meeting
by either writing to the Other Directors atMGP Ingredients, Inc., Cray
Business Plaza, 100 Commercial Street, P.O. Box 130, Atchison, Kansas, 66002
or by contacting them through the online tool provided at
http://ir.mgpingredients.com/contactBoard.cfm.

3 EASY WAYS TO VOTE

1.Vote by Telephone. Call the toll-free number listed on your proxy card
    or voting instruction form. Have your control number listed on the form
    ready and follow the simple instructions.
    
2.Vote by Internet. Go to the website listed on your proxy card or voting
    instruction form. Have your control number listed on the form ready and
    follow the simple instructions.
    
3.Vote by Mail. Mark, sign, date and return your proxy or voting
    instruction form in the postage-paid return envelope provided.

PLEASE ACT TODAY

YOUR VOTE IS IMPORTANT

All you have to do is vote the GOLD proxy card or voting instruction form that
was included with this letter. It will supersede any original proxy that you
submitted. Do NOT return the white proxy from MGP Ingredients.

If you submit a proxy to us by signing and returning the enclosed GOLD proxy
card, do not sign or return any white proxy card or follow any voting
instructions provided by MGPI management unless you intend to change your
vote, because only your latest-dated proxy will be counted. If you have
already sent a proxy card to MGPI, you may revoke it and vote on the GOLD card
simply by signing, dating and returning the enclosed GOLD proxy card. Please
do not return any white proxy card; it will revoke any GOLD card you have
previously signed.

STREET NAME SHAREHOLDERS: IF YOUR SHARES ARE HELD IN THE NAME OF A BROKERAGE
FIRM, BANK NOMINEE OR OTHER INSTITUTION, ONLY THEY CAN VOTE YOUR SHARES AND
ONLY UPON RECEIPT OF YOUR SPECIFIC INSTRUCTIONS.

If you have any questions or require any assistance in executing your GOLD
proxy card, please call or e-mail:

D.F. King & Co., Inc.
Toll-free: (800) 859-8509
E-MAIL: MGPI@DFKING.COM

NOTICE TO INVESTORS

ON JULY 10, 2013, THE PARTICIPANTS FILED A DEFINITIVE PROXY STATEMENT WITH THE
SECURITIES AND EXCHANGE COMMISSION (THE "SEC"). SECURITY HOLDERS ARE ADVISED
TO READ THE DEFINITIVE PROXY STATEMENT AND OTHER DOCUMENTS RELATED TO THE
SOLICITATION OF PROXIES BY THE PARTICIPANTS FROM THE STOCKHOLDERS OF THE
COMPANY FOR USE AT THE 2013 ANNUAL MEETING BECAUSE THEY CONTAIN IMPORTANT
INFORMATION RELATING TO THE PARTICIPANTS. THE DEFINITIVE PROXY STATEMENT IS
AVAILABLE AT NO CHARGE AT THE SEC'S WEBSITE AT HTTP://WWW.SEC.GOV. THE
PARTICIPANTS' DEFINITIVE PROXY STATEMENT AND A FORM OF PROXY WERE FIRST SENT
TO COMMON AND PREFERRED STOCKHOLDERS ON OR ABOUT JULY 12, 2013.

SOURCE The Cray Group

Contact: Karen Seaberg, The Cray Group, 913-367-5823
 
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