Only the owner will change for Hungarian Biscuits plants

The French food company announced that it has entered exclusive talks to sell its biscuit division to Kraft in a transaction valued at $7.2 billion.

This move will allow Kraft expand its presence in Europe and
leave Danone to concentrate on its two core businesses of dairy products and
mineral water.

The continuation of the DANONE Biscuits division's European
activities as a distinct unit, which will be based in France and remain under
the management of its current General Manager, Georges Casala, and his teams.

The intent not to announce the closing of any of the DANONE
Biscuit manufacturing facilities in France for at least three years after the
transaction is signed.

The quality of the Kraft Foods offer is in line with the
quality of the work done by our teams and provides them with new perspectives
for their future. Thus, this project is a wonderful opportunity for all players
concerned". Groupe DANONE's Biscuits and Cereal Products business has
leadership positions in more than 20 countries. At the end of 2006, it has
close to 15,000 employees and has 36 factories throughout the world. In 2006,
sales volumes reached 660,000 tons with sales of €2 billion and operating
results of €318 million.

The main international brands are LU, Petit Déjeuner,
Cracotte, Ourson, Mikado, Pepito and Tuc. Besides, various local brands, part
of the historical heritage, benefit in different countries from very strong
positions, as Bolshevik in Russia, Opavia in Czech Republic, Gyõri in Hungary
or Saiwa in Italy.