CPC International Projects Strong 1997; Corn Refining Profits Expected To Return To Normal Levels.

ENGLEWOOD CLIFFS, N.J.--(BUSINESS WIRE)--December 19, 1996--CPC International Inc. said today that it continues to expect a strong year in 1997 and that profits from its corn refining business, which were strongly impacted by the steep rise and then precipitous fall of corn costs in 1996, should return to normal levels in 1997.

CPC's chairman and chief executive officer, C. R. Shoemate, said, "We continue to expect substantial improvements in corn refining profitability in 1997. We have liquidated essentially all of our corn futures positions for 1997, other than those tied to firm-price business, and we expect to enter 1997 in a position to achieve profit margins in our normal range."

The cost of liquidating the corn futures positions has been absorbed in 1996 and has been offset by lower current taxes than previously forecasted and reversal of tax reserves. For 1996, the company forecasts earnings per share of $3.93, consistent with its announcement of November 6 concerning fourth-quarter earnings. The company expects to continue to benefit from a tax rate lower than 37% in 1997.

Mr. Shoemate emphasized that corn refining accounts for less than 15% of the company's total earnings. CPC's consumer foods and baking businesses comprise by far the largest part of the company's business. "We have had an outstanding year in consumer foods and baking, and more strategic action is underway around the world now than ever before to build these businesses aggressively," said Mr. Shoemate. "The results are clearly evident in 1996 and will be again in 1997."

ABOUT CPC INTERNATIONAL: CPC International Inc. is among the largest U.S. food companies and ranks as one of the 100 largest industrial companies in the U.S., with annualized sales of about $10 billion. Best known among CPC's U.S. products are: Hellmann's and Best Foods mayonnaise; Mazola corn oil and margarine; Skippy peanut butter; Knorr soups, sauces, and bouillons; Entenmann's sweet baked products; Thomas' English muffins; Arnold, Brownberry, Freihofer's, and Oroweat breads; Boboli Italian bread shells; Mueller's pasta; and Karo syrup. CPC's global Knorr brand comprises one of the world's most extensive lines of products. CPC is one of the nation's most international food companies, with operations in 63 countries. CPC is also one of the largest corn refiners, with operations in North America and Latin America. For more information, visit CPC's website on the Internet at: http://www.cpcinternational.com.

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