Sara Lee Corporation Announces Agreement with U.K. Pension Plan Trustees and Pension Regulator

As a part of the arrangement, Sara Lee Corporation or itssubsidiaries will increase annual deficit correction payments to GBP32 million to the Pretty Polly and Courtaulds sections of the U.K.plan through 2015 to fund such sections of the plan up to the U.K.required Pension Protection Fund (PPF) funding levels. These paymentswill not significantly impact Sara Lee's future cash flow or have amaterial impact on earnings. If required, Sara Lee will make lump sumpayments in 2016 and thereafter to ensure that the Courtaulds andPretty Polly sections have achieved their PPF funding levels at thattime.

The Pensions Regulator has cleared the arrangements between SaraLee and the U.K. Plan Trustees.

As previously announced with the sale of its branded apparelbusiness in Europe earlier this year, the company retained certainunder-funded pension obligations in the U.K. when this business wassold and expects to contribute GBP 49.5 million prior to the end ofthe current fiscal year to fully fund the retained obligations. It isanticipated that the trustees of these plans will use a substantialportion of the proceeds to purchase annuities for plan participants ata future date, and that this action will likely result in therecognition of a settlement loss. The exact timing of the settlementof these obligations has not been determined.

Forward-looking Statements

This news release contains forward-looking statements regardinglump sum payments Sara Lee may be required to make beginning in 2016to ensure that the Courtaulds and Pretty Polly sections have achievedtheir Pension Protection Fund funding levels and the expected impactof the increased annual deficit correction payments on Sara Lee'sfuture cash flow and earnings. These forward-looking statements arebased on currently available financial information and management'sviews and assumptions regarding future events, which are based in parton the work of consulting actuaries. These forward-looking statementsare inherently uncertain and actual results may differ from thoseexpressed or implied in the forward-looking statements. Thecorporation cautions readers not to place undue reliance on anyforward-looking statements. Among the factors that could cause futurefunding requirements to differ from the estimated amounts arefluctuations in interest rates and investment returns on pensionassets, changes in actuarial assumptions regarding life expectancy ofpension plan participants, changes in applicable legislation andreductions in the corporation's credit rating. Changes in theestimated future funding requirements, in turn, could change theimpact of such payments on the Sara Lee's future cash flows andearnings. We have provided additional information in our Form 10-K forfiscal 2005, which readers are encouraged to review, concerningfactors that could cause actual results to differ materially fromthose in the forward-looking statements. Sara Lee undertakes noobligation to publicly update any forward-looking statements, whetheras a result of new information, future events or otherwise.

Company Profile

Sara Lee Corporation (www.saralee.com) is a Chicago-based globalmanufacturer and marketer of high-quality, brand-name products forconsumers throughout the world. In February 2005, the company beganexecuting a bold and ambitious multi-year plan to transform Sara Leeinto a company focused on its food, beverage, and household and bodycare businesses around the world. As part of its transformation plan,Sara Lee will drive growth in its key categories via such strongbrands as Ball Park, Douwe Egberts, Hillshire Farm, Jimmy Dean, Kiwi,Sanex, Senseo and its namesake, Sara Lee.