Kraft Foods Completes Acquisition of United Biscuits' Iberian Operations and Return of Nabisco Trademarks.

NORTHFIELD, Ill. -- Kraft Foods Inc. (NYSE:KFT), a global leader in branded foods and beverages, announced today that it has completed its acquisition of United Biscuits' (UB) Iberian operations, as well as the recovery of the rights to key Nabisco trademarks in Europe, the Middle East and Africa, including Oreo, Ritz and Chips Ahoy!.

"Bringing our Nabisco trademarks back into our product portfolio, coupled with the addition of strong local Iberian biscuit brands, is another step in increasing shareholder value as we further improve our growth potential in this key region," said Joachim Krawczyck, Group Vice President & President, Kraft EU region. "This transaction gives us an enhanced platform for innovation and extends Kraft's competitive position in the EU."

The acquisition, announced July 10, 2006, was valued at $1,067 million, consisting of the assumption of $537 million of debt issued by the acquired business immediately prior to the acquisition, as well as $530 million of value for the redemption of Kraft's outstanding investment in UB, primarily deep discount securities. This redemption generates a non-cash, pre-tax gain of $251 million or 10 cents per diluted share. The EPS impact, versus the previously disclosed 13 cents, reflects the finalization of income tax effects and currency movements.

Kraft Foods (NYSE:KFT) is the world's second-largest food and beverage company. For more than 100 years, we've helped people around the world eat and live better. Millions of times a day, in more than 150 countries, consumers reach for their favorite Kraft brands including Kraft cheeses and dinners, Jacobs, Gevalia and Maxwell House coffees, Oscar Mayer meats, DiGiorno pizzas, Oreo cookies, Ritz crackers and chips, Philadelphia cream cheese, Milka and Cote d'Or chocolates, Honey Bunches of Oats cereals, Good Seasons salad dressings and Tang refreshment beverage. Consumers continue to expand their list of Kraft favorites by adding our Tassimo hot beverage system, South Beach Diet product line, and a growing range of better-for-you Sensible Solution products to their shopping baskets.

For more information on Kraft Foods, please visit our website at www.kraft.com.

Forward-Looking Statements

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