Merger of Friesland Foods and Campina to go Ahead (y 2)

To guarantee the availability of Dutch raw milk for third parties, FrieslandCampina is required to make available annually a maximum of 1.2 billion kilos of Dutch raw milk for sale to new or existing producers of fresh dairy products or naturally matured cheese in the Netherlands, provided they are interested in buying this milk. An independent foundation will be set up for this purpose and will be operational from mid-2009. In order to reduce FrieslandCampina's share in the Dutch raw milk market and guarantee the availability of milk for third parties, member dairy farmers who opt to cancel their membership of FrieslandCampina and deliver their milk elsewhere will receive an amount of 5 euros per 100 kilos of milk. This applies, however, up to a maximum of 1.2 billion kilos of milk. Cancellation of the membership is voluntary, so each member decides independently and there will be no compulsory cancellation. The quantity of milk for which this incentive will be paid will be deducted from the quantity of milk made available for sale annually via the foundation. The conditions imposed by the European Commission, incidentally, form no barrier whatsoever to the operational growth in the milk volume of the member dairy farmers of FrieslandCampina.

FrieslandCampina

The merger will create a leading global dairy business. The diversification across product groups and geographical markets, the strong brands and the international scale in research, production, marketing and sales will make FrieslandCampina a more dynamic and effective company - a company that will be able to respond efficiently to the constantly accelerating changes in the market.

FrieslandCampina will organise its activities in a structure comprising four business groups: Consumer Products Western Europe, Consumer Products International, Cheese & Butter and Ingredients. The product range consists of consumer milk, milk in powder and concentrated form, dairy drinks, yoghurts, desserts, cream, coffee creamers, baby and infant food, cheese, butter and ingredients. Based on the figures of 2007 FrieslandCampina's annual revenue will amount to 9.1 billion euros. The 17,000 member dairy farmers will jointly deliver 8.3 billion kilos of milk. The company will employ 22,000 people and has about 100 production and sales locations in 24 different countries.

Cees 't Hart will be the chairman of the Executive Board (CEO) of the new business. Other members of the Board will be: Kees Gielen (Chief Financial Officer), André Boudewijns (Chief Integration Officer), Piet Hilarides (Chief Operating Officer Cheese & Butter), Freek Rijna (Chief Operating Officer Consumer Products Western Europe), Theo Spierings (Chief Operating Officer Consumer Products International) and Frans Visser (Chief Operating Officer Ingredients). The head office will be located in Amersfoort (the Netherlands).

About Royal Friesland Foods

Royal Friesland Foods is a multinational that produces and markets natural, nutritious and high-quality dairy products, fruit drinks and ingredients. Taste, health, convenience, reliability and vitality for the consumer are key characteristics. With a wide range, Friesland Foods is represented in more than 100 countries. Worldwide, Friesland Foods employs approximately 14,600 employees. In 2007, its revenue was 5.1 billion euros. The business is based on a cooperative model. The 9,400 member dairy farmers of Zuivelcoöperatie Friesland Foods are the owners and the supplies of the milk. Its most important brands are Dutch Lady, Frisian Flag, Foremost, Friesche Vlag, Milli, NoyNoy, Peak, Bonnet, Rainbow, Completa, Debic, Frico, Friso, Pöttyös, Dots, Domo, Kievit, Appelsientje, Chocomel, Cécémel, CoolBest, DubbelFrisss, Extran and Fristi.

Internet: http://www.frieslandfoods.com

About Campina

With operations from London to Moscow and from the United States to Japan and firmly rooted in the Netherlands, Germany and Belgium for many generations: the cooperative dairy company Campina. The just over 7,000 dairy farmers who together own Campina, supply the best milk every day. This forms the basis for milk, dairy drinks yoghurts, desserts, cheese and butter, which consumers recognise in the brands Campina, Betagen Botergoud, Coast, Fruttis, Landliebe, Mona, Milner, Optimel/Optiwell, Valess, Vifit and Yazoo. Via DMV International, Creamy Creation and Nutrifee, Campina is also a leading global supplier of ingredients to the food and pharmaceutical industry. With their passion for dairy, the 7,000 or so employees generate revenue of 4.0 billion euros.

Internet: http://www.campina.com

For more information: Friesland Foods, Corporate Communication, Rob van Dongen, T +31(0)522-276-334, Mail: ria.vanderpeet@campina.com; Campina, Corporate Communication, Ria van der Peet, T +31(0)418-571-365, Mail: rob.vandongen@frieslandfoods.com