NORTHFIELD, Ill. -- Kraft Foods Inc. announced today that it has agreed to sell its Minute Rice brand and assets to Ebro Puleva, S.A., a leading rice producer and distributor based in Spain, for approximately $280 million.

The Minute Rice brand had net revenues of approximately $90 million in 2005.

"Our decision to sell Minute Rice is part of a broader effort at Kraft to focus our portfolio," said Dave Johnson, President, Kraft North America Commercial. "While Minute Rice is a great brand, our focus is on businesses in which we believe we have a sustainable competitive advantage."
The sale includes the Minute brand, as well as certain manufacturing equipment.

The sale is expected to generate a one-time gain of $0.10 per share and ongoing dilution is expected to be $0.01 per share, neither of which was included in Kraft's July 24, 2006 earnings guidance. The gain will be recognized upon closing, which is subject to regulatory approval.

Kraft Foods is the world's second-largest food and beverage company.

Ebro Puleva is a leading Spanish food group in terms of turnover, profit, market capitalization and international presence. Ebro Puleva is a world leader in the rice sector, second worldwide in the pasta sector, the leading sugar group in Spain and No. 1 on the Spanish dairy products market. Riviana Foods, a subsidiary of Ebro Puleva, S.A. is one of the largest processors, marketers and distributors of branded and private label rice products in the United States.

SOURCE: Kraft Foods via Business Wire.