Barilla, Italy's No. 1 Pasta, Announces First U.S. Plant.

PARMA, Italy--(BUSINESS WIRE)--September 10, 1997--

Twin Plants To Be Built in Ames, Iowa and

Foggia, Italy to Ensure Authenticity in U.S.

Barilla S.p.A, manufacturers of Italy's no. 1 brand of pasta, announced today plans to construct its first plant in the United States, located in Ames, Iowa.

The facility, which is expected to produce well over 200 million pounds of pasta per year, will enable Barilla to service its rapidly growing business as the United States' first and only national brand of pasta. Ames construction will begin this month, with actual pasta production beginning in mid-1998.

"U.S. consumers will be the winners here," said Edwin L. Artzt, executive director of Barilla S.p.A. "This new $137 million state-of-the-art plant in Ames, Iowa will provide consumers with authentic Italian Barilla pasta at lower prices, as we pass along savings in transportation costs and import duties."

Over the last year, Barilla has enjoyed rapid business growth -- The brand is the fastest growing brand of pasta in the U.S. and will sell over 100 million pounds of pasta this year. To fulfill its U.S. pasta production, Barilla expects to purchase between $40 and $60 million worth of durum wheat from U.S. farmers.

In addition, Artzt emphasized how the company is going to great lengths to ensure that the authentic Italian flavor and "al dente" quality of Barilla will not be compromised. "The company plans to bring a taste of Italy to the heartland by simultaneously constructing the Ames plant with a plant in Foggia, Italy," said Artzt. "The sister plants will be identical in every way -- from the carpeting on the floor to the tiling on the roof."

This will ensure that the two plants -- although thousands of miles apart -- will produce identical products in every pound of pasta. The twin plants will enable a continuous exchange of technology between the two continents, including proprietary milling, blending and pasta making techniques unique to Barilla. In addition, many of the Ames employees will travel to Italy, courtesy of Barilla, for cross training with their Italian counterparts. This will enable the Iowa workforce to learn and understand the Barilla heritage firsthand.

The Ames facility will employ approximately 150 people and spans over 240 acres. The plant, mill and warehouse covers 350,000 square feet. The mill will provide durum semolina for the plant and will also incorporate the company's latest technology.

Barilla America is a fully owned subsidiary of Barilla S.p.A., the world's largest pasta producer. Since its founding in 1877, Barilla has been known as the premium choice in pasta. The entrepreneurial spirit of the Barilla family has run the company for the past 120 years, now in its fourth generation with the brothers Guido, Luca and Paolo continuing this family tradition.

CONTACT: Wendy Schwimmer

212/546-1430