Kellogg Acquires Leading Biscuit Manufacturer in China

Kellogg Company acquired Zhenghang Food Company Ltd., a manufacturer of cookies and crackers in the northeastern region of China.

 "Geographic expansion in
high-growth markets like China will help Kellogg Company continue to
deliver sustainable growth," said David Mackay, president and
chief executive officer, Kellogg Company. "Navigable Foods'
biscuit products are a strong, strategic fit within the Kellogg
portfolio and will further build our presence in China. Company's
2007 net sales were approximately $50 million."

Founded in 1993, Navigable Foods is one
of the major biscuit manufacturers in China, providing consumers with
a large variety of cookie and cracker products under the ZhengHang
brand.

The acquisition includes two
manufacturing facilities located in Yishui county, Shandong province,
and Fushun city, Liaoning province, as well as the company's sales
and distribution network. This plant will report into Kellogg
Company's Asia Pacific business unit.

Recently, Kellogg's Corporate
Citizenship Fund (KCCF), the charitable arm of the company, made a
$250,000 donation to the American Red Cross, designated to support
the earthquake relief efforts of its sister organization, the Red
Cross Society of China (RCSC).