Heinz Net Income Down 19.3%

NEW YORK - Aug 22/05 - SNS -- H.J. Heinz Company reported net income of U.S. $157.3 million on sales of $2,110.2 million during the first quarter ending July 27, compared to net income of $194.8 million on sales of $2,003.0 million the same three-month period of the previous fiscal year.

The company said special items in the first quarter of Fiscal 2006 totaled $33.8 million pretax ($24.5 million after tax) and related to previously announced reorganization charges for targeted workforce reductions at various worldwide locations as well as costs incurred in connection with strategic reviews related to the potential divestiture of several non-core businesses.

Heinz expects to incur expense totaling approximately $100 million in Fiscal 2006 for reorganization activities and portfolio reviews as well as costs to integrate acquisitions.

Overall, Heinz's first quarter sales increased 5.3%, reflecting improvements in all sales measures. Volume increased 2.3%, driven primarily by the North American Consumer Products segment, as well as Heinz Australia and the Italian infant nutrition business. These volume increases were partially offset by declines in our non-core European frozen food and seafood businesses. Pricing increased sales by 0.2%.

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