Kraft Foods Announces Latest Steps in Latin America Consolidation.

Business Editors

NORTHFIELD, Ill.--(BUSINESS WIRE)--Nov. 30, 2001

Kraft Foods Inc. (NYSE: KFT), a global leader in branded foods and beverages, today announced plans by the Kraft Foods International business to close two Latin American manufacturing plants and consolidate other operations within the region as part of the ongoing integration of the Kraft and Nabisco businesses.

The former Nabisco plants to be closed are located in Guatemala City, Guatemala and San Jose, Costa Rica. The Guatemala plant will close effective November 30th, while the San Jose, Costa Rica plant will continue production until April 30, 2002. Production from both facilities, which primarily consists of dry mix, baking powder and ready-to-eat gelatin, will shift to Kraft's other plant in San Jose, Costa Rica. Approximately 120 employees will be affected by these plant closures.

Kraft also announced the consolidation and restructuring of other Latin American production facilities. Production of dry mixes for the Andean area will be consolidated at Kraft's plant in Cali, Colombia; LifeSavers candy production will move from Barquisimeto, Venezuela to San Jose, Costa Rica; and snacks production at the Trinidad facility will shift to Kingston, Jamaica. In addition, Kraft will downsize two cashew facilities in Brazil and a grocery manufacturing plant in Valencia, Venezuela. The consolidation and restructuring of these facilities will result in an aggregate reduction of approximately 420 employees.

"These difficult decisions are a necessary part of the ongoing integration of our Kraft Foods and Nabisco operations," said Joachim Krawczyk, President of Kraft's Latin America Region. "Our goal is to accomplish these organizational changes with minimal disruption to the business and maximum sensitivity to those involved. Our affected employees will receive comprehensive and fair separation packages, as well as job search assistance."

Kraft Foods is the largest branded food and beverage company headquartered in the United States and the second largest worldwide. Kraft Foods markets many of the world's leading food and beverage brands - - including Kraft cheese, Jacobs and Maxwell House coffees, Nabisco cookies and crackers, Philadelphia cream cheese, Oscar Mayer meats, Post cereals, and Milka chocolates - - in more than 140 countries.

Kraft Foods Inc. is headquartered in Northfield, IL. Its international operating unit, Kraft Foods International, and its Latin America Region, are headquartered in Rye Brook, NY. For more information on Kraft Foods, please visit our website at www.kraft.com.