8 million, a 49.frutarom .S.

About The J.

flavorings fona

Furthermore, the continued growth trend in the Flavors Division, which
typically has higher margins compared to fine ingredients products (reaching
66.1%
during the same half of 2004. During the first half of 2005, Frutarom achieved cash
flow from operating activities of US$ 13.27 0.M.

fona papantla

5% Compared With 10. Net profit
for the second quarter grew by 86.1% during the same quarter
in 2004. The proceeds from the offering together with the
successful completion of the integration of the activities acquired by
Frutarom form an even more solid base than previously for realizing our rapid
growth strategy and ensuring future growth. dollars in thousands
(Unaudited) (Audited)

Liabilities and shareholders'
equity

CURRENT LIABILITIES:
Bank credit and loans 1,728 9,687 50,355
Accounts payable:
Trade 22,159 14,746 20,257
Other 23,378 17,648 20,718
Provisions 903 1,876 1,193
________ ________ ________
T o t a l current liabilities 48,168 43,957 92,523
________ ________ ________

NON-CURRENT LIABILITIES:
Loans and credit from banks
(net of current
maturities) 6,767 28,244 29,831
Retirement benefit obligations 7,956 1,275 8,502
Deferred income tax liabilities 5,610 4,006 4,231
________ ________ ________
T o t a l non-current 20,333 33,525 42,564
liabilities
________ ________ ________
T o t a l liabilities 68,501 77,482 135,087
________ ________ ________

SHAREHOLDERS' EQUITY:
Share capital 16,394 13,939 13,961
Additional paid-in capital 91,219 16,733 17,642
Currency translation (2,815) 2,228 5,039
differences
Retained earnings 64,299 35,383 41,332
Amount designed for
distribution of dividend
declared
subsequent to balance sheet 1,740
date
Cost of company shares held by (806) (885) (1,061)
subsidiary
________ ________ ________
T o t a l shareholders' equity 168,291 67,398 78,653
________ ________ ________
Total shareholders' equity and 236 ,792 144,880 213,740
liabilities
________ ________ ________
________ ________ ________

FRUTAROM INDUSTRIES LTD.17 0. Since the 1998 inception of FORTUNE Magazine's
annual survey of the 100 Best Companies to Work For, The J.M.

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During the second quarter of 2005, Frutarom continued its trend of
increased sales, profitability and profits for the twenty-third consecutive
quarter. Gross margin
during the second quarter reached 40. Earnings per share for the first half of the year totaled US$ 0.7 million in the
second quarter of 2004. Smucker Company introduces a new way to enjoy delicious
Smucker's(R) toppings with ice cream or as a dip for strawberries,
marshmallows and more.

flavour vanilla

We will continue to invest in developing new
products and offer our customers a broad product portfolio consisting largely
of natural products and new innovative products such as functional food
ingredients.
Gross profit for the second quarter of 2005 rose 52.6 million compared with the same period
in 2004, while during the first half of 2005 operating profit continued the
growth seen in previous years and reached US$ 20.2 million compared with US$ 8.4
million in the first half of 2004. Our management will continue to
invest substantial efforts and resources in identifying and executing
potential acquisitions, and in continuing to achieve rapid growth targets in
our core activities, which will ensure that we reach our ambitious goals
while creating value for our shareholders. Convenient Cups are the Perfect Portion of Indulgence

ORRVILLE, Ohio, Just in time for the warm summer
months, The J.newscom.

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8 million, up 86.2% in the second quarter of
2005 compared with 13.28
per share compared with US $ 0.8
million (net) offering and registration of shares on the London Stock
Exchange Official List .
- The Fine Ingredients Division, which develops, produces, markets and
sells natural flavor extracts, natural functional food ingredients, natural
pharma/nutraceutical extracts, specialty essential oils and citrus products
and aroma chemicals.28 0.smuckers.

montebianco distillates

2 million, compared with US$ 4. The Company also works through local
agents and distributors worldwide.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
FOR THE SIX AND THREE-MONTH PERIODS ENDED 30 JUNE 2005

6 months ended 3 months ended Year ended
30 June 30 June 31 December
2005 2004 2005 2004 2004
U.14 0.M.99 - $2.M.

enhancers distillates

6% in
the Second Quarter of 2004

Net Profit Reaches US$ 8."
Frutarom's sales in the second quarter of 2005 totaled US$ 67. Sales during the
first half of the year totaled US$ 131. In parallel with the growth in operating profit,
operating margin continued to rise, reaching 17. Net profit for the first half of 2005 rose sharply by 88. The
Company's global marketing organization includes branches in Israel, the
United States, England, Switzerland, Germany , Denmark, France, Hungary,
Romania, Russia, Ukraine, Kazakhstan, Belarus, Turkey, Brazil, Mexico , China,
Japan, Hong Kong, India and Indonesia.
Tel: +972-4-846-2401
E-mail: oyehudai@frutarom .
CONDENSED CONSOLIDATED BALANCE SHEET
AT 30 JUNE 2005

30 June 31 December
2005 2004 2004
U. Available in Hot Fudge and Caramel flavors, Smucker's
Sundae Singles are individually-portioned and microwaveable toppings , perfect
for a little indulgence any time of the day. Smucker Company.

vanilla spearmint

4 M, Growing 86. This growth in Frutarom's financial results is the result of the
successful implementation of Frutarom's rapid growth strategy, combining
organic growth in core activities at rates above the industry average with
strategic acquisitions of activities and know-how in the Company's main
fields of business and in strategic geographic regions. We estimate that the full impact of the cross selling
will materialize over the next two years."
Yehudai added, "Frutarom will continue to focus on both large
multinational customers and on mid-size and local customers, providing
superior, high quality and tailor-made services .5% of total sales in the second quarter of 2005 and 65.9
million compared with US$ 17.1% compared with 39.5% compared with 9.

improvers takeda

2% Compared With 13.4% compared with 39.5 million during the same quarter last year. Net margin reached 12.5%
in the second quarter of 2005 to compared with 10.17 during the first half of last year. "Whether served with ice cream or other snacks,
consumers can enjoy Smucker 's toppings with ease, any time, anywhere.

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The integration of the Food Systems
activity acquired from IFF in Switzerland, Germany and France with the
Frutarom Group's global operations contributed to the growth in sales. Operating profit grew sharply by 91.6% for the same quarter in 2004, and to 15 . dollars in thousands
(Unaudited) (Unaudited) (Audited)

SALES 131,802 88,486 67,073 44,553 196,780
COST OF SALES 79,884 53,849 40,160 26,909 122,447
_______ ______________ _______ _______
GROSS PROFIT 51,918 34,637 26,913 17,644 74,333
SELLING, MARKETING, RESEARCH
AND DEVELOPMENT, GENERAL AND
ADMINISTRATIVE EXPENSES - net:
Selling, marketing, research
and development
- net 22,322 15,515 11,514 7,817 34,554
General and administrative 9,431 8,055 4,485 3,849 17,869
OTHER INCOME - net 676 131 651 76 102
_______ ______________ _______ _______
OPERATING PROFIT 20 ,841 11,198 11,565 6,054 22,012
FINANCIAL EXPENSES - net 375 447 175 369 1,347
_______ ______________ _______ _______
PROFIT BEFORE TAXES ON
INCOME 20,466 10,751 11,390 5,685 20,665
TAXES ON INCOME 5,254 2,684 3,020 1,207 4,909
_______ ______________ _______ _______
NET INCOME FOR THE PERIOD 15,212 8,067 8,370 4,478 15,756
_______ ______________ _______ _______
_______ ______________ _______ _______

U. Smucker Company
has consistently been recognized as one of the top 25 companies to work for in
the United States.

kirin flavor

1% in the Same Quarter in 2004

HAIFA, Israel , Frutarom (LSE: FRUT,
TASE: FRUT, OTC: FRUTF) today presented its second quarter 2005 results.4 % during the first
half of the year, compared with 53.1% during
the second quarter of 2005 to US $ 11.6% to reach
US$ 15.6 million, compared with US$ 8. Frutarom has significant production and development centers on three
continents and markets its products on five continents to over 3,500
customers in more than 100 countries.
CONDENSED CONSOLIDATED BALANCE SHEET
AT 30 JUNE 2005

30 June 31 December
2005 2004 2004
U.M.M.

flavourings spearmint

5% increase compared with the same quarter of 2004.9 million
compared with US$ 34. Frutarom's products are intended for
the food and beverage , flavor and fragrance, pharmaceutical, nutraceutical,
functional food, food additive and cosmetic industries.com

FRUTAROM INDUSTRIES LTD.33
_______ ______________ _______ _______
_______ ______________ _______ _______

In June
2004, the Company expanded its family of products to include such brands as
Pillsbury(R) baking mixes and ready-to-spread frostings; Hungry Jack(R)
pancake mixes , syrups and potato side dishes, and Martha White(R) baking mixes
and ingredients in the US, along with Robin Hood(R) flour and baking mixes,
and Bick's(R) pickles and condiments in Canada.

oleoresins enhancers

5% Compared With the Same Quarter in 2004 to Reach US$ 67.1
M

Operating Profit Grew Sharpely 91. M .

pulps improvers

1% compared
with the first half of 2004.
Frutarom's products are produced at its plants in the United States,
England, Switzerland, Germany, Israel, Denmark, China, and Turkey. dollars in thousands
(Unaudited) (Audited)
A s s e t s

CURRENT ASSETS:
Cash and cash equivalents 21,570 3,993 7,350
Accounts receivable:
Trade 51,630 35,525 43,733
Other 7,694 4,632 7,291
Prepaid expenses and advances
to
Suppliers 2,874 1,756 1,851
Inventories 44,076 32,443 43,769
________ ________ ________
T o t a l current assets 127,844 78,349 103,994
________ ________ ________

NON-CURRENT ASSETS:
Property, plant and equipment 90,338 61,118 96,683
Intangible assets 12,376 221 5,348
Deferred income tax assets 2,251 1,083 2,957
Other non-current assets 3,983 4,109 4,758
________ ________ ________
T o t a l non-current assets 108,948 66,531 109,746
________ ________ ________
T o t a l assets 236,792 144,880 213,740
________ ________ ________
________ ________ ________

FRUTAROM INDUSTRIES LTD.10 0.

I Scream You Scream We All Scream ... for Smucker's(R) Sundae Singles

smuckers.

compounded flavorings

We will persevere in
strengthening our presence in developed markets, such as Western Europe and
the United States , and in intensifying our activities in the fast growing
emerging markets where we currently operate , as well as entering new emerging
markets where the growth rate is higher than the global average .9%, reaching US$ 8. Net
margin also grew and reached 11.

Company Contact

Ori Yehudai, President + CEO
Frutarom Ltd.

takeda halaal

4%
in all of 2004); the growth in the Fine Ingredients Division's sales, to
which new, innovative high margin products developed in Frutarom's R+D labs
contributed; the expansion and development of its global sales
infrastructure; and the successful integration and materialization of the
synergy between Frutarom's R+D and productions sites, also contributed to
this growth in sales.6 million during the first half of 2004.1 million in the first half of 2004.
Frutarom operates through two Divisions:
- The Flavors Division, which develops , produces and markets flavor
compounds and food systems. Frutarom employs about 1,000 people
worldwide .34
_______ ______________ _______ _______
_______ ______________ _______ _______
DILUTED 0. Any way you serve
them, Smucker's Sundae Singles are a delicious treat, with or without ice
cream .
Smucker's Sundae Singles are available in packs of four convenient
single-servecups and retail for approximately $1. The J.

flavour neutraceuticals

6% to reach US$ 26.6 million in the same quarter last year.9% to reach US $ 51.
Yehudai concluded by saying, "Frutarom continues to be focused on
realizing its rapid growth strategy combining organic growth of core
activities, at rates above the industry average , with strategic acquisitions
of activities and knowhow in its main fields of business and in strategic
geographic regions.
(Photo: http://www.

flavors pulps

6 M Compared With the
Second Quarter in 2004: Operating Margin Grew to 17.8% in the
first half of 2005 compared with 12.S.15 0. Smucker Company except: Pillsbury is a trademark of The
Pillsbury Company, used under license.

oror flavorings

Frutarom Continues to Achieve Growth for the 23rd Consecutive Quarter

1% to US$ 11.
Ori Yehudai, the Frutarom Group's President and Chief Executive Officer,
said, "The good results are due to the continuing organic growth in our core
activities; the successful integration of Flachsmann's activity, which was
acquired by Frutarom in 2003; and the successful completion of the first
phase of the integration of the Food Systems activity, acquired from IFF
during the second half of 2004."
Frutarom invests considerable efforts and resources in implementing its
growth strategy and achieving its goals, which will significantly strengthen
Frutarom's position as a leading global company. During
the first half of the year gross profit grew 49.7% in the same period in 2004.10 in the second quarter
of 2004. Smucker Company (http://www.com) was founded in 1897
when the Company's namesake and founder sold his first product -- apple butter
-- from the back of a horse-drawn wagon.

oleoresins spearmint

Frutarom is in contact with several very interesting potential
candidates for acquisition, mainly in countries and markets where we already
have substantial activity. As part of
implementing this strategy we recently announced the opening of an office in
Indonesia, and have acquired the natural botanical extracts business of the
American company, A. Todd, which we are rapidly integrating into Frutarom's
existing activity in New Jersey .15 compared with US$0.S.
Smucker's Sundae Singles are also the perfect size to bring along on a
summertime picnic or keep at work for an afternoon treat.com, to find Smucker's Sundae Singles along with other
delicious Smucker's toppings and recipes. Today, over a century later, the
Company is the market leader in fruit spreads, peanut butter, shortening and
oils, ice cream toppings, and health and natural foods beverages in North
America under such icon brands as Smucker's(R), Jif(R ) and Crisco(R).

improvers spearmint

6% during the same
quarter in 2004 and during the first half reached 39. Earnings per share continued to grow during the second quarter
of the year and reached US$ 0.
During the second quarter of 2005, Frutarom achieved cash flow from
operating activities of US$ 8."
Background on the Company
Frutarom is a global company active in global flavor and fine ingredients
markets. Smucker Company
The J. Smucker Company has over 3,500 employees worldwide
and distributes products in more than 45 countries.

savoury flavourings

9% Compared With Same Quarter in
2004: Net Margin Grew to 12. Frutarom is now focusing on identifying and
leveraging the synergy and cross-selling opportunities between the new
customers and products added by the acquisition, and Frutarom's existing
customers and products.0% increase compared
with the first half of last year.1% in the second quarter of 2004 and 56. To achieve our goal of executing strategic acquisitions
in the future, during the first quarter of 2005 we completed a US$ 75.
For further information, visit our website: http://www.S. Dollars
_________________________________________
EARNINGS PER SHARE:
BASIC 0.10 0.M.

savoury compounded

Sales Grew 50.com.com /cgi-bin/prnh/20050502/NYMFNS3 )
"We've taken the most popular toppings and packaged them in convenient
single-serve cups," says Maribeth Badertscher, communications manager, The
J.
Smucker Company has been headquartered in Orrville, Ohio, and has been family
run for four generations.

(R) The J.

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Yehudai noted, "Frutarom's
management invests considerable resources in finding and executing strategic
acquisitions.1 million,
a 50.4 million compared with
US$ 4.1% during the first half
of last year.17 0."
Celebrate National Ice Cream Month this July and top off your favorite ice
cream with warm hot fudge or caramel, or dip pretzels or fruit in Smucker's
Sundae Singles for a different kind of snack.29. Look in the ice
cream topping section of your local retailer , or visit
http://www. For over 107 years, The J.