Australia's Uncle Tobys Sold

NEW YORK - May 23/06 - SNS -- Cereal Partners Worldwide (CPW), a joint venture between Nestle and General Mills, plans to purchase the Uncle Tobys ready-to-eat and hot cereal business in Australia for approximately US $375 million in cash.

The transaction, which is expected to close this summer, also includes rights for CPW to market ready-to-eat and hot cereals in New Zealand. Product manufacturing will continue at the Uncle Tobys facility in Wahgunyah, Victoria.

The Australian ready-to-eat cereal market ranks as one of the world's largest, generating annual retail sales of more than US $600 million. CPW has successfully operated in Australia since 2003 and currently markets the Milo, Cheerios and Nesquik cereal brands.

Uncle Tobys began operations in 1893 and is an iconic brand with Australian consumers. Today, the Uncle Tobys breakfast cereal line holds a 19% share of category retail sales and includes brands such as PLUS and Vita Brits, as well as Uncle Tobys Hot Oats, which enjoys strong leadership in the hot cereal segment of the category.