Heinz Acquires Majority Stake in Leading Russian Maker of Ketchup, Con

Heinz Acquires Majority Stake in Leading Russian Maker of Ketchup, Condiments and Sauces; Heinz and Petrosoyuz Teaming Up to Sell Ketchup and Other Products in Russia and Eastern Europe

To download high-resolution, print-ready JPEG images, click on the thumbnail image above. WARNING: these images are very large (800K+) Click here for caption

To download high-resolution, print-ready JPEG images, click on the thumbnail image above. WARNING: these images are very large (800K+) Click here for caption

To download high-resolution, print-ready JPEG images, click on the thumbnail image above. WARNING: these images are very large (800K+) Click here for caption

To download high-resolution, print-ready JPEG images, click on the thumbnail image above. WARNING: these images are very large (800K+) Click here for caption

To download high-resolution, print-ready JPEG images, click on the thumbnail image above. WARNING: these images are very large (800K+) Click here for caption

    Business Editors
    MULTIMEDIA AVAILABLE:
    http://www.businesswire.com/cgi-bin/mmg.cgi?eid=4877938

    PITTSBURGH & ST. PETERSBURG, Russia--(BUSINESS WIRE)--May 3, 2005--H.J. Heinz Company (NYSE:HNZ) today announced that its European business has completed a transaction that will make Heinz a majority owner of Petrosoyuz, a leading Russian maker of ketchup, condiments and sauces, through the formation of a new joint venture company to market ketchup and other products in Russia and neighboring Eastern European nations.
    "This joint venture agreement accelerates Heinz's growth in Eastern Europe, now the largest market for ketchup and condiments in Europe. Heinz will have a clear majority stake in Petrosoyuz, a privately-held St. Petersburg-based food company that holds Russia's number-one or number-two positions in mayonnaise, ketchup and margarine," said William R. Johnson, Chairman, President and CEO of the H.J. Heinz Company.
    Petrosoyuz has annual revenue of approximately US $140 million, more than 2,000 employees and three manufacturing plants in St. Petersburg, Otradnoe and Ivanovo. Those factories and the Heinz baby food factory in Georgievsk will become part of the joint venture company.
    Joe Jimenez, President and CEO of Heinz Europe stated that, "this joint venture is consistent with our European strategy to build our core businesses in the rapidly emerging markets of Eastern Europe. Additionally, it will give Heinz access to local market understanding that will allow us to expand sales of other popular Heinz brands and products throughout Russia. In order to achieve this, the co-founders of Petrosoyuz, Mark Budyko and Dmitry Filatov, will continue to provide their leadership and market knowledge, as co-Managing Directors of the joint venture."
    Mark Budyko, Principal of Petrosoyuz said, "This joint venture with Heinz is a win-win for all parties involved. Heinz is an international player with a great track record for manufacturing and marketing world-class products. They offer resources, technical capabilities and commercial expertise, which will be combined with Petrosoyuz's knowledge and understanding of the Russian market, to take our business to the next level. We see this agreement as a very positive step for our employees, our customers and all stakeholders."
    Petrosoyuz's business includes famous local brands such as Picador, Derevenskoe, Mechta Hoziayki and Moya Semya. Petrosoyuz has number one market positions in Mayonnaise and Spreads/Margarines, with shares of 19% and 59.5% respectively, and a number two position for Ketchup with a 23.7% market share. The company was established in 1990.
    Financial terms of the joint venture agreement were not released. The transaction was completed on April 28, following approval from the Federal Anti-Monopoly Service of the Russian Federation.

    SAFE HARBOR PROVISIONS FOR FORWARD-LOOKING STATEMENTS:

    This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect management's view of future events and financial performance. These statements are subject to risks, uncertainties, assumptions and other important factors, many of which may be beyond Heinz's control and could cause actual results to differ materially from those expressed or implied in these forward-looking statements. Uncertainties contained in such statements include, but are not limited to, sales, earnings, and volume growth, general economic, political, and industry conditions, competitive conditions, which affect, among other things, customer preferences and the pricing of products, production, energy and raw material costs, the need for product recalls, the ability to maintain favorable supplier relationships, achieving cost savings programs and gross margins, currency valuations and interest rate fluctuations, success of acquisitions, joint ventures, and divestitures, new product and packaging innovations, the effectiveness of advertising, marketing, and promotional programs, supply chain efficiency and cash flow initiatives, the impact of e-commerce and e-procurement, risks inherent in litigation and international operations, particularly the performance of business in hyperinflationary environments, changes in estimates in critical accounting judgments, the possibility of increased pension expense and contributions and other people-related costs, and other factors described in "Cautionary Statement Relevant to Forward-Looking Information" in the Company's Form 10-K for the fiscal year ended April 28, 2004, and the Company's subsequent filings with the Securities and Exchange Commission. The forward-looking statements are and will be based on management's then current views and assumptions regarding future events and speak only as of their dates. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by the securities laws.

    ABOUT HEINZ: H.J. Heinz Company is one of the world's leading producers and marketers of branded foods in ketchup, condiments, sauces, meals, soups, seafood, snacks and infant foods. Heinz is a global family of leading brands, including Heinz(R) Ketchup, sauces, soups, beans, pasta and infant foods (representing nearly one-third of total sales), Ore-Ida(R) french fries, Boston Market(R) and Smart Ones(R) meals and Plasmon(R) baby food. Heinz's 50 companies have number-one or number-two brands in 200 countries, showcased by Heinz(R) Ketchup, the world's favorite ketchup. Information on Heinz is available at www.heinz.com/news.

MULTIMEDIA AVAILABLE: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=4877938

--30--KR/cl*

CONTACT: Heinz European Corporate Affairs Michael Mullen, +44 20 8848 2403 Michael.mullen@uk.hjheinz.com or Heinz World headquarters Corporate Affairs Debbie Foster, +1 412 456 5778 Debbie.foster@us.hjheinz.com or Country Director, Heinz Russia Tim Lamb, +7 095 937 3557 tlamb@heinz.ru

KEYWORD: PENNSYLVANIA RUSSIA INTERNATIONAL EUROPE INDUSTRY KEYWORD: CONSUMER/HOUSEHOLD FOODS/BEVERAGES RETAIL MERGERS/ACQ PHOTO PHOTOWIRE SOURCE: H.J. Heinz Company PHOTO: 44525

Copyright Business Wire 2005