Chiquite Reports Decline in EU Volume

NEW YORK - Mar 22/06 - SNS -- Chiquita Brands International, Inc. said its average selling price for bananas rose 5% on a local currency basis, but fell 3% in U.S. dollar terms in European Union, Switzerland, Norway and Iceland during 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% 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% more premium Chiquita-label bananas and 59% less lower-margin second-label fruit during the period versus the same two months in 2005.

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