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Chiquita Provides Interim Price and Volume Data for Bananas and Retail Value-Added Salads for Second Quarter 2006

Posted on: Tuesday, 13 June 2006, 15:00 CDT

CINCINNATI, June 13 /PRNewswire-FirstCall/ -- Chiquita Brands International, Inc. today announced information on Chiquita banana and Fresh Express retail value-added salad prices and volume for April and May 2006 in each of its principal markets.

Core European Markets

In the European Union, Switzerland, Norway and Iceland, Chiquita's average banana prices declined 10 percent on a local currency basis (down 13 percent on a U.S. dollar basis) in the first two months of the 2006 second quarter, compared to the same period a year ago. The company attributed the lower average European prices in 2006 to the impact of regulatory changes in the market that have encouraged certain new competitors to enter the market, causing pronounced year-over-year declines at the low end of the price spectrum. In addition, April-May 2005 pricing had been particularly robust, up 19 percent on a local currency basis (up 28 percent on a U.S. dollar basis) versus April-May 2004, making year-over-year comparisons in 2006 more challenging.

In January 2006, the European Commission implemented a new regulation for the importation of bananas into the European Union. It imposes a tariff rate of euro 176 per metric ton (euro 3.19 per box) on bananas imported from Latin America, up from euro 75 per metric ton (euro 1.36 per box) under the former regime, and eliminates the quota that had previously applied to Latin American banana imports.

The volume of bananas the company sold in its core European markets fell 2 percent overall in the April-May 2006 period; while volume declined 5 percent in April, it rose 2 percent in May. The company attributed to overall volume decrease primarily to a strategic focus on selling premium-quality fruit: the company sold 3 percent more premium Chiquita-label bananas and 30 percent less lower-margin second-label fruit during the period versus the same two months in 2005.

North America

Average banana prices in the United States and Canada rose 10 percent in the first two months of the 2006 second quarter versus the same period last year. The company attributed the increase primarily to successful renegotiations of customer contracts at higher pricing levels as well as to the impact of the company's surcharge policy initiated in the fourth quarter 2005, which is linked to the average market price of marine bunker fuel.

Banana volume fell 11 percent in the two-month period due primarily to the continuing disruptive impact of fourth quarter 2005 storms, including Tropical Storm Gamma and Hurricane Stan, on sourcing and logistics. The company reiterated that it expects banana supply to normalize by the third quarter 2006.

In the company's Fresh Express retail value-added salads business, volume rose 6 percent in the two-month period, as new product introductions, merchandising and value-added selling continued to drive year-over-year growth. Net revenue per case rose 3 percent compared to the year-ago period.

Asia Pacific and the Middle East

Banana prices in this region rose 1 percent on a U.S. dollar basis in April and May 2006, compared to a year ago. The volume of bananas the company sold in Asia Pacific and the Middle East rose 15 percent year-over-year in the two-month period, due to growth in markets outside of Japan.

Chiquita Brands International, Inc. (http://www.chiquita.com/) is a leading international marketer and distributor of high-quality fresh and value-added produce, which is sold under the Chiquita(R) premium brand, Fresh Express(R) and other related trademarks. The company is one of the largest banana producers in the world and a major supplier of bananas in Europe and North America. In June 2005, Chiquita acquired Fresh Express, the U.S. market leader in value-added salads, a fast-growing food category for grocery retailers, foodservice providers and quick-service restaurants.

EXHIBIT A: CHIQUITA BANANAS Year-over-Year Percentage Change 1 April-May 2006 vs. April-May 2005 Pricing Volume Core European Markets (2) -13 % -2 % U.S. dollar basis (3) -10 % Local currency North America +10 % -11 % Asia Pacific and the Middle East (4) +1 % +15 % U.S. dollar basis (5) 1 These statistics may not be indicative of future results. 2 The 25 countries of the European Union, Switzerland, Norway and Iceland. 3 Prices on a U.S. dollar basis do not include the impact of hedging. 4 The company primarily operates through joint ventures in this region. 5 Since the majority of the company's business in this region is now invoiced in U.S. dollars, the company does not provide the local currency equivalent. EXHIBIT B: FRESH EXPRESS RETAIL VALUE-ADDED SALADS Year-over-Year Percentage Change 1, 2 April-May 2006 vs. April-May 2005 Net Revenue Volume Per Case North America +3 % +6 % 1 These statistics may not be indicative of future results. 2 These results included net revenues and volumes sold prior to June 28, 2005, when Fresh Express was not owned by Chiquita.

Chiquita Brands International, Inc.

CONTACT: Michael Mitchell of Chiquita Brands International, Inc.,+1-513-784-8959, or mmitchell@chiquita.com

Web site: http://www.chiquita.com/

Source: PRNewswire-FirstCall

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