Nestle to Expand Its Frozen Food Plant in Arkansas

Business Wire, March 4, 2008

New Production Line and Bakery Will Create as Many as 200 New Jobs in Jonesboro

SOLON, Ohio -- Nestle Prepared Foods Company today announced its plans to invest over $60 million to expand its frozen foods manufacturing facility in Jonesboro, Arkansas. The "state-of-the-art" manufacturing facility, which opened in 2003, currently produces STOUFFER'S[R] and LEAN CUISINE[R] frozen prepared meals. With the expansion, a new production line will be installed and a new bakery will be constructed which will allow pizza production for both brands to begin in Arkansas.

The factory will expand by an additional 50,000 square feet of manufacturing area to the north of the plant where the new bakery will operate, producing a variety of different pizza bases. A new production line will be installed in the current manufacturing facility to make and package the pizzas sold under the STOUFFER'S[R] and LEAN CUISINE[R] brand names.

Between the installation of the new production line and the construction of the new bakery, as many as 200 new jobs in Jonesboro will be created when the new bakery and production line are operational. Total employment at the Nestle facility is now nearly 600, with 200 jobs added in the last six months due to the success of the STOUFFER'S[R] and LEAN CUISINE[R] brands, which are sales leaders in the competitive frozen meals category.

Nestle has selected Nation Pizza Products of Schaumberg, Illinois, to operate the new bakery, which will be connected to the existing Nestle facility and is designed for future expansion. Nation Pizza is recognized for their depth of experience that comes from their specialization in dough-based products. "The company has clearly demonstrated their expertise in this field and we've found the team there to be strong operationally," commented Chuck Dries, Director of Operations for Nestle Prepared Foods Company. "We look forward to working with Nation Pizza Products to bring pizza production to Jonesboro, in 2009," stated Dries.

"The announcement of our decision to expand the facility in Arkansas reflects our commitment to investing in manufacturing capacity to help us meet demand for our successful STOUFFER'S[R] and LEAN CUISINE[R] brands. We've seen very good success with our casual products such as LEAN CUISINE[R] Brick Oven Style Pizzas and our STOUFFER'S[R] CORNER BISTRO[R] Flatbreads, which we will begin to make in Jonesboro once this project is completed, " said Dale Morsefield, Vice President of Supply Chain and Operations of Nestle Prepared Foods Company.

"This new pizza production line and new bakery are great news for the Jonesboro area in two ways," commented Andy Darley, who moved to Jonesboro last August as Nestle factory manager. "First, investment in new construction always carries with it a multiplier effect. The construction work itself helps to create new jobs and drive business growth in the community. Second, as many as 200 new positions will be created when we're fully operational. This reflects well on the current Jonesboro workforce which has shown they are committed to making high quality products at competitive operating costs."

Nestle Prepared Foods Company is headquartered in Solon, Ohio. Its more than 7000 employees are dedicated to providing consumers with a variety of convenient, nutritious and delicious meals, sandwiches and snacks. Its well-known brands include STOUFFER'S[R] and LEAN CUISINE[R] frozen meals and pizzas, BUITONI[R] refrigerated pastas and sauces and HOT POCKETS[R] and LEAN POCKETS[R] brand sandwiches. Nestle Prepared Foods Company is part of Nestle USA, which is owned by Nestle S.A. of Vevey, Switzerland-the world's largest food company.

Named one of "America's Most Admired Food Companies" in Fortune magazine for the tenth consecutive year, Nestle USA provides quality brands and products that bring flavor to life every day. From nutritious meals with LEAN CUISINE[R] to baking traditions with NESTLE[R] TOLL HOUSE[R], Nestle USA makes delicious, convenient, and nutritious food and beverage products that enrich the very experience of life itself. That's what "Nestle. Good Food, Good Life" is all about. Well-known Nestle brands include: NESTLE[R] TOLL HOUSE[R], NESTLE[R] NESQUIK[R], NESTLE[R] COFFEE-MATE[R], STOUFFER'S[R], LEAN CUISINE[R], HOT POCKETS[R] and LEAN POCKETS[R] brand sandwiches, NESCAFE[R], NESCAFE[R] TASTER'S CHOICE[R], NESTLE[R] JUICY JUICE[R], BUITONI[R], DREYER'S/EDY'S[R] , NESTLE[R] CRUNCH[R], NESTLE[R] BUTTERFINGER[R], and WONKA[R]. Nestle USA, with 2007 sales of $8.25 billion, is part of Nestle S.A. in Vevey, Switzerland - the world's largest food company - with 2007 sales of $90 billion. For product news and information, visit Nestleusa.com or NestleNewsroom.com.