Ebro concludes sale of its dairy business to Lactalis

Madrid, 2 September 2010. Once approved by the European antitrust authorities, Ebro (www.ebrofoods.es) and Lactalis (www.lactalis.fr) signed today the contract of sale of Ebro¿s dairy business. This division is now wholly owned by Lactalis.

As mentioned when we announced the agreement in principle between buyer and seller, the reference value of the transaction is 630 million euros.

Of this sum, Ebro received 555.2 million euros today and will receive the rest, after the necessary adjustments, when the audit of the dairy division financial statements at 31 August 2010 is concluded, foreseeably in mid-October.

This transaction gives Ebro considerable financial strength to undertake further strategic development, through which it aims to bolster its position as world leader in the rice sector through organic and inorganic growth, move further towards its goal of establishing itself as leading pasta manufacturer worldwide and become an international benchmark in the meal solutions sector. At the same time, Ebro emerges as one of the healthiest enterprises on the Spanish financial scene.

Meanwhile, its inclusion in the largest dairy group in Europe gives Puleva enormous development potential and an outstanding opportunity to consolidate and strengthen its position of leadership in the Spanish dairy sector.

About Ebro

Ebro (www.ebrofoods.es) is the leading Group in the Spanish food sector in terms of turnover, profit, market capitalisation and international presence. Ebro is world leader in the rice sector and second in the international pasta sector. It has leading brands in each of these sectors, including: Panzani®, Ronzoni®, Skinner®, Healthy Harvest®, American Beauty®, Saint Giorgio®, Catelli®, Lancia®, Birkel®, 3 Glocken®, Schuele®, Minuto® and Nudel Up® in pastas and sauces; and Mahatma®, Success®, Carolina®, Minute Rice®, Lustucru®, Taureau Ailé®, Oryza®, Bosto®, Reis-Fit®, Riceland®, Danrice®, Risella®, Brillante®, Nomen®, La Cigala® and La Fallera® in the rice sector.

About Lactalis Group

Lactalis Group (www.lactalis.fr) is the world¿s third leading dairy group. With a global turnover of 8.5 billion euros and 37,000 employees in 25 countries worldwide, it has a strong presence in Spain on the cheese, milk and milk drinks market through the brands Lauki®, Chufi®, Choleck®, Président®, Galbani®, El Ventero®, Gran Capitan®, Don Bernardo® and Lactel®; it also sells yoghurts and fresh dairy desserts under the La Lechera® brand. With this new acquisition and including the Forlasa business, Lactalis will have twelve factories in Spain, 2,700 employees and a turnover of approximately 1.2 billion euros.