Nestlé S.A. and Lactalis jointly state that they remain fully committed to the planned common business in the chilled dairy sector, as announced in December of 2005.  Both companies believe that the creation of a European venture in the yoghurt and chilled dessert sector will ultimately benefit consumers through increased innovation.

After filing with the anti-trust authorities of the European Union at the end of June 2006, and as a result of discussions between the companies and the Commission, the companies were informed that some changes were required. As a procedural matter, Nestlé and Lactalis decided to withdraw the filing and to resubmit a modified proposal to the Commission in mid-August 2006. The amendments will not significantly affect the core sectors of the common business.

Nestlé and Lactalis remain confident that a positive outcome can be expected and look forward to concluding the operation in the course of 2006.