Weaker World Banana Market

NEW YORK - Sep 12/06 - SNS -- Chiquita Brands International, Inc. said international banana prices dropped below year earlier levels during the first two months of its 2006 third quarter.

In the European Union, Switzerland, Norway and Iceland, Chiquita's average banana prices declined 17% on a local currency basis (down 12% on a U.S. dollar basis) in the first two months of the 2006 third quarter, compared to the same period a year ago.

The lower average European prices in July-August 2006 period reflect unseasonably warm weather in many parts of Europe, which depressed consumer demand, as well as the impact of regulatory changes in the market that have resulted in an increase in market competitors at the low end of the price spectrum.

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.

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