Kraft Foods Highlights Positive Momentum of Sustainable Growth Plan During 2006 Stockholders Meeting and Reaffirms Guidance

Business Wire, April 25, 2006

NORTHFIELD, Ill. -- Kraft Foods Inc. (NYSE:KFT), a global leader in branded food and beverages, held its Annual Stockholders Meeting today in East Hanover, New Jersey. The company reviewed the positive momentum of its Sustainable Growth Plan and reiterated its previous full-year 2006 earnings guidance for diluted earnings per share from continuing operations of $1.55 - $1.60.

In his remarks, Roger K. Deromedi, Chief Executive Officer, Kraft Foods, reported that the company's focus on the right business drivers since 2004 had delivered measurable progress, including accelerated new product revenues, improved product mix, solid growth in developing markets, increased portfolio focus, significant cost savings, better Brand Value propositions, and improved U.S. market shares.

"Our Sustainable Growth Plan is fixing our business, enabling us to take better advantage of both our scale and one of the best brand portfolios in the food and beverage industry," Deromedi said. "While our financial performance lagged our improving business fundamentals last year, 2006 is off to a good start. I'm confident that strong execution of our Guiding Principles will continue to deliver improved financial performance in 2006 and beyond."

With more than 99% of the vote, the nine nominees named in the proxy statement were elected directors, the ratification of the selection of PricewaterhouseCoopers LLP as independent auditors was approved, and the company's 2006 Stock Compensation Plan for Non-Employee Directors was also approved. Additionally, a stockholder proposal regarding Kraft's support of the 2006 Gay Games received less than 1% of the vote and was rejected.

2006 Outlook

EPS guidance for 2006 remains unchanged from April 19, 2006 at $1.55 to $1.60 per diluted share, including $0.24 per diluted share for the IRS Tax Audit resolution and $(0.07) per diluted share for the pet snacks divestiture. Guidance also includes $0.50 per diluted share of charges attributable to the Company's restructuring program and other impairment charges.

Kraft Foods (NYSE: KFT) is the world's second-largest food and beverage company. For more than 100 years, we've been dedicated to helping people around the world eat and live better. Hundreds of 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 and Wheat Thins crackers and chips, Philadelphia cream cheese, Milka and Cote d'Or chocolates, Honey Bunches of Oats cereals, Good Seasons salad dressings and Tang refreshment beverages. They've also started adding our Tassimo hot beverage system, South Beach Diet line and a growing range of better-for-you Sensible Solution products to their shopping baskets, continually expanding their list of Kraft favorites.

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

Forward-Looking and Cautionary Statements

This press release contains projections of future results and other forward-looking statements. One can identify these forward-looking statements by use of words such as "strategy," "expects," "plans," "anticipates," "believes," "will," "continues," "estimates," "intends," "projects," "goals," "targets" and other words of similar meaning. One can also identify them by the fact that they do not relate strictly to historical or current facts. These statements are based on the Company's current assumptions and estimates and are subject to risks and uncertainties. In connection with the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, the Company is hereby identifying important factors that could cause actual results and outcomes to differ materially from those contained in any forward looking statement made by or on behalf of the Company. These factors include: (a) the effect on the Company of competition in its markets, changes in consumer preferences and demand for its products, including diet trends, changing prices for its raw materials and local economic and market conditions; (b) the Company's continued ability to promote brand equity successfully, to anticipate and respond to new consumer trends, to develop new products and markets, to broaden brand portfolios, to compete effectively with lower priced products in a consolidating environment at the retail and manufacturing levels and to improve productivity; (c) the Company's ability to consummate and successfully integrate acquisitions and to realize the cost savings and improved asset utilization contemplated by its restructuring program; (d) the impact of gains or losses, or lost operating income, from the sales of businesses that are less of a strategic fit within the Company's portfolio; (e) the effects of foreign economies, changes in tax requirements and currency movements; (f) fluctuations in levels of customer inventories and credit and other business risks related to the operations of the Company's customers; (g) the Company's access to credit markets, borrowing costs and credit ratings, which may in turn be influenced by the credit ratings of Altria Group, Inc.; (h) the Company's benefit expense, which is subject to the investment performance of pension plan assets, interest rates and cost increases for medical benefits offered to employees and retirees; (i) the impact of recalls if products become adulterated or misbranded, liability if product consumption causes injury, ingredient disclosure and labeling laws and regulations, potential claims relating to false or deceptive advertising under consumer protection or other laws and the possibility that consumers could lose confidence in the safety and quality of certain food products; (j) consumer concerns regarding genetically modified organisms and the health implications of obesity and trans fatty acids; and (k) potential short-term volatility in the trading volume and market price of the Company's stock as a result of a spin-off of the Company from Altria Group, Inc. Developments in any of these areas could cause the Company's results to differ materially from results that have been or may be projected by or on behalf of the Company. The Company cautions that the foregoing list of important factors is not exclusive. For additional information on these and other factors that could affect the Company's forward-looking statements, see the Company's filings with the Securities and Exchange Commission, including the Company's most recently filed Annual Report on Form 10-K and subsequent reports on Form 10-Q and 8-K. Any forward looking statements in this press release are made as of the date hereof. The Company does not undertake to update any forward looking statement.