Kraft to Divest Certain Trademarks in Spain and Hungary to Fulfill Regulatory Requirement

Kraft Foods Inc. (NYSE: KFT) today announced it has signed agreements to sell the Artiach biscuits business in Spain to Panrico and the Balaton chocolate trademark in Hungary to Nestlé.

These actions follow last year’s decision by the European Commission to clear Kraft’s acquisition of Group Danone’s global biscuits business, including LU Iberia and Györi Keksz, conditioned upon Kraft’s divesting a limited number of trademarks in Spain and Hungary. The actions announced today are expected to complete that regulatory requirement. The sale agreements are subject to regulatory approvals prior to closing, which is expected later this year.

The divestitures will not affect Kraft’s ongoing businesses in Spain and Hungary. Kraft’s ongoing focus in Spain is to grow its strong portfolio of leading biscuit, chocolate, coffee, cheese, desserts and mayonnaise brands including LU, Oreo, Fontaneda, Milka, Saimaza, Philadelphia, El Caserio, Royal and Kraft. In Hungary, the company will continue to focus on developing its strong portfolio of leading biscuit and chocolate brands such as Győri Édes, Pilóta, Milka, Sport and others.

Kraft is one of the world’s largest food and beverage companies, with 2007 revenues of more than $37 billion. For more than 100 years, the company has offered consumers delicious foods that fit the way they live. Kraft markets a broad portfolio of iconic brands in more than 150 countries, including nine brands with revenues exceeding $1 billion: Kraft cheeses, dinners and dressings; Oscar Mayer meats; Philadelphia cream cheese; Maxwell House coffee; Nabisco cookies and crackers and its Oreo brand; Jacobs coffees, Milka chocolates and LU biscuits. Kraft is listed in the Standard & Poor’s 100 and 500 indexes. The company is a member of the Dow Jones Sustainability Index. For more information, visit the company’s web site at www.kraft.com.