General Mills Faces SEC probe

MINNEAPOLIS - Feb 5/04 - SNS -- General Mills, Inc. has received a “Wells Notice” from the staff of the U.S. Securities and Exchange Commission (SEC) in connection with the Commission's inquiry concerning the company's sales practices and related accounting.

That inquiry was announced by General Mills in October 2003 and is ongoing. The Wells Notice involves the company's sales practices and disclosures related to those practices.

Under the SEC's procedures, a Wells Notice indicates that the staff has made a preliminary decision to recommend that the Commission bring a civil action against the company. The Wells Notice also covers the company's chief executive officer and chief financial officer. Recipients of Wells Notices have the opportunity to respond to the SEC staff before the staff makes its formal recommendation on whether any action should be brought by the SEC.

General Mills said it "believes its sales practices and related accounting comply with all applicable rules and regulations. General Mills said it is continuing to cooperate with the SEC in its investigation."

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