Glanbia Announces Sale of Remaining Interest in The Cheese Company Holdings Ltd

Glanbia plc, the international dairy foods and nutritional ingredients Group, ("Glanbia") today announced the sale of its 25% interest and Stg£35m interest bearing Loan Notes in The Cheese Company Holdings Limited ("TCCH"), to the majority shareholder, Milk Link Limited ("Milk Link"), for a total consideration of Stg£47.207m (€70.41m), payable in cash. These proceeds will be used to fund the growth strategy of the Glanbia Group.

This sale will result in an exceptional charge of €9.2m in the financial statements for the year ended 31 December 2006, relating to the discounting of the 2008 - 2018 Loan Notes to current values.

TCCH is the largest cheese producer in the UK, with strong positions in cheddar, Stilton and British territorial cheeses, supplying the retail, food service and ingredient sectors. For the period ended 1 April 2006, TCCH generated profits before tax of £5.6m. At 1 April 2006, the net assets of TCCH were £32.2m.

Commenting on the sale, Glanbia Group Managing Director, John Moloney, said "We have had a mutually very satisfactory relationship with Milk Link since 2004 during which The Cheese Company has developed into a strong integrated business. We consider now to be an appropriate time to dispose of our remaining interest and to focus on the development of our fast growing international businesses. I am pleased that we will continue with key commercial arrangements with Milk Link on a number of fronts going forward."

ENDS

Exchange rate: €1 = STG 67.046

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