Sara Lee Corporation Reviews Transformation Plan at New York Analyst Meeting

Business Wire, March 15, 2005

CHICAGO -- At a meeting with analysts in New York today, Brenda C. Barnes, president and chief executive officer of Sara Lee Corporation, and L.M. (Theo) de Kool, executive vice president and chief financial and administrative officer, provided an overview of the company's transformation plan to drive long-term growth and performance.

Sara Lee's transformation plan, which was announced on Feb. 10, 2005, is built upon three pillars: organizing business operations around consumers, customers and geographic markets; achieving operational efficiency to fund growth; and focusing the portfolio. In today's presentation, Barnes stressed the company's commitment to executing the transformation plan.

"Through the transformation plan, we have established a clear direction for Sara Lee and I am confident that we are well equipped to effectively execute this plan," said Barnes. "Our leadership team is aligned, we have the commitment of the entire organization to win in the marketplace, we have instituted a project management discipline throughout the company and we have the right resources and talent in place to drive our transformation initiatives successfully."

During his remarks, de Kool discussed Sara Lee's future cash flow expectations. The company anticipates generating between $5.5 billion and $6 billion over the next five years, excluding proceeds from dispositions. The company intends to use the cash to support Sara Lee's transformation plan as well as to reduce debt, pay dividends and repurchase shares.

Forward-looking Statements

This press release contains certain forward-looking statements, including statements describing Sara Lee's expected future cash flows and uses of such cash, and statements preceded by terms such as "estimates," "expects," "intends" or "anticipates." These forward-looking statements are based on currently available competitive, financial and economic data, as well as management's views and assumptions regarding future events, and are inherently uncertain. Factors that could cause Sara Lee's actual results to differ from those expressed or implied in the forward-looking statements include the following: (i) Sara Lee's ability to sell its European branded apparel, European packaged meats, direct selling and U.S. retail coffee (except for Senseo) businesses, and the timing and terms of such transactions; (ii) Sara Lee's ability to obtain a favorable tax ruling, and any other required regulatory approvals, on the proposed spin-off of the balance of its non-European branded apparel business into an independent company; (iii) Sara Lee's ability to effectively integrate its remaining businesses into the contemplated new business structure, including centralized operations in the Chicago area and in Utrecht; (iv) 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 in accordance with its current plans and assumptions; (v) Sara Lee's ability to generate the anticipated efficiencies and savings from the various business transformation efforts; and (vi) the impact of the strategic transformation plan on Sara Lee's relationships with its employees, its major customers and vendors and Sara Lee's cost of funds. Sara Lee's results may also 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 it competes. We have provided additional information in our Form 10-K for 2004 and Form 10-Q for the first two quarters of fiscal year 2005, 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. With headquarters in Chicago, Sara Lee has operations in 58 countries and markets products in nearly 200 nations.