Sara Lee Corporation Highlights Innovation at CAGNY's Annual Conference.

Company continues to build base business momentum

DOWNERS GROVE, Ill. -- At the annual Consumer Analyst Group of New York (CAGNY) conference, Brenda C. Barnes, chairman and chief executive officer of Sara Lee Corporation (NYSE:SLE), today reviewed the company's focus on innovation and provided an update on Sara Lee's transformation.

As Sara Lee continues its long-term transformation from a diversified holding company into an integrated operating company, management has executed a number of important strategies. During her remarks, Barnes focused on the company's new disciplined approach to innovation and provided a number of examples of how new products born from this process are winning in the marketplace.

"Our disciplined innovation process - which we call 'the funnel to the tunnel' - is responsible for a number of successful new Sara Lee products, including Ambi Pur 3volution, Douwe Egberts Cafe Switch, Hillshire Farm Entree Salads, Jimmy Dean Skillets and Breakfast Bowls, and Sara Lee Soft & Smooth bakery products, as well as new foodservice offerings, such as Sara Lee Restaurant Reserve and Bistro Collection cheesecakes and the Douwe Egberts C-60 coffee machine," said Barnes. "Sara Lee employees around the world are collaborating to translate consumer and customer insights into winning, on-trend products and services faster than ever before."

To illustrate innovation at the company, Barnes showcased the Sara Lee brand, noting that it has experienced a significant increase in fresh bakery sales, driven by new products such as Whole Grain White Bread, Buns and Rolls, Hearty & Delicious Breads and Breakfast Breads. In addition, she underscored that Sara Lee Soft & Smooth Whole Grain White bread continues to be the No. 1 stock-keeping unit (SKU) of fresh bread in America. Barnes also highlighted the success of Ambi Pur 3volution, sharing that the air care product significantly increased market share in its first market, the U.K., and rapidly was rolled out to eight additional countries in 2006. She noted that future growth for Ambi Pur will come from expanding the 3volution platform, as well as launching other innovative air care products based on consumer insights.

In addition to innovation, Barnes also reviewed Sara Lee's strategic framework, which outlines a holistic plan to drive growth.

"We have made significant progress in transforming Sara Lee," added Barnes. "We have a strong team in place, an evolving culture of teamwork and success, great opportunities for sales and margin growth across our business, and the plans in place to continue to deliver solid results."

Barnes reiterated that Sara Lee expects to see overall margin improvement in fiscal 2007. She also noted that in the first half of fiscal 2007 base business performance improved at foodservice, North American retail bakery, international beverage, and household and body care.

Webcast

For people who were unable to listen to the webcast live, Sara Lee's CAGNY presentation will be posted in the Investors section of the Sara Lee corporate Web site in approximately two hours, and will be available until Tuesday, Aug. 21, 2007.

Forward-Looking Statements

This news release contains forward-looking statements regarding Sara Lee's business prospects, costs and operating results, including statements contained under the heading "Guidance." In addition, from time to time, in oral statements and written reports, the corporation discusses its expectations regarding the corporation's future performance by making forward-looking statements preceded by terms such as "expects," "likely" or "believes." These forward-looking statements are based on currently available competitive, financial and economic data and management's views and assumptions regarding future events. Such forward-looking statements are inherently uncertain, and investors must recognize that actual results may differ from those expressed or implied in the forward-looking statements. Consequently, the corporation wishes to caution readers not to place undue reliance on any forward-looking statements. Among the factors that could cause Sara Lee's actual results to differ from such forward-looking statements are factors relating to:

* Sara Lee's relationship with its customers, such as (i) a significant change in Sara Lee's business with any of its major customers, such as Wal-Mart, the corporation's largest customer, including changes in the level of inventory these customers maintain; and (ii) credit and other business risks associated with customers operating in a highly competitive retail environment;

* The consumer marketplace, such as (iii) significant competition, including advertising, promotional and price competition, and changes in consumer demand for Sara Lee's products; (iv) fluctuations in the availability and cost of raw materials, Sara Lee's ability to increase product prices in response and the impact on Sara Lee's profitability; (v) the impact of various food safety issues on sales and profitability of Sara Lee products; and (vi) inherent risks in the marketplace associated with new product introductions, including uncertainties about trade and consumer acceptance;

* Sara Lee's transformation plan, such as (vii) the expected impact of the spin-off of Hanesbrands on the corporation's future effective tax rate; (viii) the impact that the spin-off of the Hanesbrands business will have upon the funding requirements of Sara Lee's remaining domestic operations and the related cost of remitting additional earnings of foreign subsidiaries to the U.S.; (ix) Sara Lee's ability to effectively integrate its remaining businesses into the contemplated new business structure, including Sara Lee's ability to transition customers to different bakery brands, transition to common information systems and processes, and manage plant capacity and workforce reductions; (x) Sara Lee's ability to generate the anticipated efficiencies and savings from the transformation plan; and (xi) the impact of the transformation plan on Sara Lee's relationships with its employees, major customers and vendors, and Sara Lee's cost of funds;

* Sara Lee's international operations, such as (xii) impacts on reported earnings from fluctuations in foreign currency exchange rates, particularly the European euro, given Sara Lee's significant concentration of business in Western Europe; (xiii) Sara Lee's ability to continue to source production and conduct manufacturing and selling operations in various countries due to changing business conditions, political environments, import quotas and the financial condition of suppliers;

* Previous business decisions, such as (xiv) Sara Lee's ability to achieve planned cash flows from capital expenditures and acquisitions, particularly Earthgrains, and the impact of changing interest rates and the cost of capital on the discounted value of those planned cash flows; (xv) credit ratings issued by the three major credit rating agencies and the impact these ratings have on Sara Lee's cost to borrow funds and access to capital/debt markets; (xvi) the settlement of a number of ongoing reviews of Sara Lee's income tax filing positions in various jurisdictions and inherent uncertainties related to the interpretation of tax regulations in the jurisdictions in which Sara Lee transacts business; and (xvii) the continued legality of tobacco products in the Netherlands, Germany and Belgium.

In addition, the corporation's results also may be affected by general factors, such as economic conditions, political developments, interest and inflation rates, accounting standards, taxes and laws and regulations in markets where the corporation competes. We have provided additional information in our Form 10-K for fiscal 2006, which readers are encouraged to review, concerning factors that could cause actual results to differ materially from those in the forward-looking statements. Sara Lee undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

Company Profile

Sara Lee Corporation (www.saralee.com) is a global manufacturer and marketer of high-quality, brand-name products for consumers throughout the world. In February 2005, the company began executing a bold and ambitious multi-year plan to transform Sara Lee into a company focused on its food, beverage, and household and body care businesses around the world. As part of its transformation plan, Sara Lee will drive growth in its key categories via such strong brands as Ambi Pur, Ball Park, Douwe Egberts, Hillshire Farm, Jimmy Dean, Kiwi, Sanex, Senseo and its namesake, Sara Lee.