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

Posted on: Wednesday, 22 March 2006, 15:00 CST

CINCINNATI, March 22 /PRNewswire-FirstCall/ -- Chiquita Brands International, Inc. today announced information on Chiquita banana and Fresh Express retail value-added salad prices and volume for January and February 2006 in each of its principal markets.

Core European Markets

In the European Union, Switzerland, Norway and Iceland, Chiquita's average banana prices rose 5 percent on a local currency basis (down 3 percent on a U.S. dollar basis) in the first two months of the 2006 first quarter, compared to the same period a year ago. The company attributed the higher average European prices in 2006 to a strategic shift in sales to more premium Chiquita-label fruit, which sells at significantly higher prices than the company's second-label fruit, in addition to the impact of higher tariffs and other industry costs.

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 overall volume of bananas the company sold in its core European markets fell 7 percent in January and February, primarily attributable to the company's strategic focus on premium-quality fruit. While overall volume decreased year-over-year, the company sold 5 percent more premium Chiquita- label bananas and 59 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 1 percent in the first two months of the 2006 quarter versus the same period last year. February 2005 pricing included surcharges of $1.00 per box implemented to offset flooding in Panama and Costa Rica a year ago. The January-February 2006 period included lesser surcharges linked to a third-party fuel index. The 2005 flood surcharge was in place only from February until the first week of April, whereas the 2006 surcharge is expected to continue indefinitely, with quarterly adjustments to reflect changes in the market price of fuel and related products. The company also noted that it had renewed certain fixed- price contracts at higher prices, which either went into effect in February 2006 or will go into effect upon the inception of the new contract periods over the next several weeks.

Banana volume fell 7 percent in the two-month period due primarily to the disruptive impact of recent storms, including Tropical Storm Gamma and Hurricane Stan, on sourcing and logistics.

In the company's Fresh Express retail value-added salads business, volume rose 11 percent in the two-month period, as new product introductions, merchandising and value-added selling drove year-over-year growth. Net revenue per case rose 4 percent compared to the year-ago period.

Asia Pacific and the Middle East

Banana prices in this region fell 1 percent on a U.S. dollar basis in January and February 2006, compared to a year ago. The volume of bananas the company sold in Asia Pacific and the Middle East rose 39 percent year-over- year in the two-month period.

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) January-February 2006 vs. January-February 2005 Pricing Volume Core European Markets (2) U.S. dollar basis (3) -3% -7% Local currency +5% North America +1% -7% Asia Pacific and the Middle East (4) U.S. dollar basis (5) -1% +39% (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 will no longer provide the local currency equivalent. EXHIBIT B: FRESH EXPRESS RETAIL VALUE-ADDED SALADS Year-over-Year Percentage Change (1) January-February 2006 vs. January-February 2005 Net Revenue Per Case (2) Volume (2) North America +4% +11% (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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