BEECH-NUT ANNOUNCES NEW PRODUCTION FACILITY IN TOWN OF FLORIDA AND RELOCATION OF HEADQUARTERS

State of New York Offers Substantial Incentives for New Facility

CANAJOHARIE, N.Y., May 15th, 2007 – Beech-Nut Nutrition Corporation proudly announces its intentions to build a new, state-of-the-art production facility in the town of Florida in Montgomery County, New York.  The baby food company will also move its corporate headquarters from St. Louis to the new site.

The new 635,000-square-foot facility located in the Florida Industrial Park will become Beech-Nut’s corporate headquarters and will be home to the company’s infant-food production facility, replacing Beech-Nut’s existing Canajoharie and Fort Plain plants. The proposed site is just 22 miles away from the main facility in Canajoharie.

The state of New York is offering substantial financial incentives to Beech-Nut to build its new infant nutrition production facility in the town of Florida in Montgomery County.  These incentives will help Beech-Nut to accelerate its growth and innovation plans, and would further upgrade its infant-nutrition production technology.

“Beech-Nut’s continued success in Montgomery County is a story of resilience,” said Governor Eliot Spitzer.  “Not only will this new facility expand the state’s manufacturing base, it will also be a boon for local farmers and the entire region.”

The overall investment for the new facility is estimated at $124 million with various Montgomery County and New York state programs offering funds and financing assistance for which Beech-Nut could qualify.

“We are grateful to the state of New York for the consideration they have shown us with these incentives as we seek to create a new state-of-the-art facility and a new home for our exceptional employees,” said Christoph Rudolf, President and CEO of Beech-Nut.  “Beech-Nut has been a proud contributor to the economy of upstate New York since our founding in 1891.  We look forward to planting our roots even deeper here and advance our mission of providing the best baby food available.”

Over the next few months Beech-Nut will develop a master plan for the project and work on the execution of grant agreements with the different state and county agencies.  Once complete, these plans will be presented to Beech-Nut’s board and parent company, the Switzerland-based Hero group, for final approval.  With this consent, the new facility could open as early as fall 2009.

According to Rudolf, the project will result in the retention and relocation of the existing 337 Canajoharie jobs and the 19 jobs at Fort Plain, and in addition, will create 135 new jobs, including the relocation of 37 positions from Beech-Nut’s current corporate headquarters in St. Louis, Missouri.  Beech-Nut will also continue to source a majority of its fruits and vegetables within New York State.

“The new facility will be the most modern infant food plant ever built and will allow us to further expand our innovative offerings,” said Rudolf.

About Beech-Nut Nutrition
Beech-Nut Nutrition Corporation has been built on a history of innovation and dedication to infant nutrition. Beech-Nut is the No. 2 leading baby food brand in the United States and is committed to delivering more nutritious choices for parents and babies.

Beech-Nut is a subsidiary of the Hero Group of Lenzburg, Switzerland, an international brand-focused consumer-foods group committed to producing high-quality, nutritious products in its core product categories of Fruit and Infant Nutrition.  Hero is active in over 30 international markets, predominantly in Europe, North America and Middle East/Africa.