We maintained our top-line momentum while
investing in our brands, adjusting our portfolio further, growing our
business in developing markets, and continuing to drive out costs,"
said Roger K.04 per share higher than the company's
previous guidance due to the fruit snacks divestiture.3% excluding acquisitions .2 billion due
to lower restructuring and impairment charges and gains on the sales
of businesses . Excluding these items, operating income declined due to
higher commodity costs (net of pricing) , increased post-employment
benefit costs (primarily pensions) and increased consumer marketing
spending , which were partially offset by positive mix, cost reduction
efforts and favorable currency. Commodity costs in aggregate were up
approximately $250 million versus the prior year, driven by increases
in coffee, cheese, nuts, meat, energy and packaging.P.205 per common share and repurchased 5. Following are
the key drivers of the change versus the company's previous guidance:

Previous Guidance - 2005 E.02)

Current Guidance - 2005 E.5% - 5.)

KRAFT NORTH AMERICA COMMERCIAL (KNAC)
-------------------------------------

Q1 2005 vs Q1 2004
% Chg. Growth reflected positive
mix, strong new product results, particularly in pizza and biscuits ,
higher prices, the impact of increased marketing spending and the
shift in Easter timing.2% to $910 million due to lower restructuring and
impairment charges.0pp. Excluding these items, OCI declined as positive mix, cost
reduction efforts and favorable currency were more than offset by
higher commodity costs (net of pricing), increased marketing spending
and higher infrastructure investment in developing markets. ET on April
19, 2005.
Kraft Foods markets many of the world's leading food brands, including
Kraft cheese, Jacobs and Maxwell House coffees, Nabisco cookies and
crackers , Philadelphia cream cheese, Oscar Mayer meats, Post cereals
and Milka chocolates, in more than 150 countries.
and Subsidiaries
Net Earnings and Diluted Earnings Per Share
For the Quarters Ended March 31, (a)
($ in millions, except per share data)

Net Diluted
Earnings EPS
--------- ---------
2005 Continuing Earnings $699 $0.41
2004 Continuing Earnings 550 0.S .7% 1.9%

Reconciliation:
---------------
2004 Net
Revenues $671 $1,708 $1,048 $591 $1,274 $5,292

- Divested
Businesses
- 2005 - 22 - - - 22
- Divested
Businesses
- 2004 - (25) - - - (25)

- Acquired
Businesses 34 7 - - - 41

- Currency - 34 - - - 34

- Operations 27 70 42 (9) 59 189
--------- ----------- ---------- ------- ------- ----------

2005 Net
Revenues $732 $1,816 $1,090 $582 $1,333 $5,553
========= =========== ========== ======= ======= ==========

----------------------------------------------------------------- -----

Memo: Ongoing,
Constant Currency
Revenues (1)
% Change 9.S. and affiliates 374 227

Accounts Payable 1,964 2,207

Other current liabilities 4,231 4,076

Long-term debt 9,724 9,723

Deferred income taxes 5,838 5,850

Other long-term liabilities 5,273 5,366
------------ ------------

Total liabilities 30,016 30,017

Total shareholders' equity 30,124 29,911
------------ - -----------

Total liabilities and
shareholders' equity $60 ,140 $59,928
============ ============

Total debt $12,710 $12,518

Capitalization (debt and equity ) $42,834 $42,429

Debt/capitalization ratio 0.

glatt shiva

"

Williams continued, "We are very proud of our Executive Chefs and New
Products team who accepted the challenge of taking the company into a new
product category.S.22 per share in restructuring and
impairment charges, which is $0.5% on a 53-week basis (1% on a comparable
52-week basis).

KRAFT FOODS INC.9%
Impact of Change In Restructuring + Impairment
Charges 14. Six of seven reporting segments recorded growth in the quarter,
with continued strong momentum in North America and improved results
in the International business.9% versus 2004 to $1.

Earnings per share were up 28.02 per share offsetting benefit to the higher impairment
charges reflects the net impact of lower taxes ($0.02 per
share) and higher energy and packaging costs ($0.
The company maintained its full-year discretionary cash flow
guidance of around $2.6%
Volume/Mix 3. Revenues in Brazil grew
double-digits due to an increase in confectionery, which was driven by
volume growth and positive mix, benefiting from earlier Easter
shipments.com and a replay of the conference call and
webcast presentations will be available on the company's web site.2 %
------------------
Gross profit 2,955 2,899 1.6% (1. The company believes this measure better
represents the revenue growth prospects of the business on a
go-forward basis, and provides improved comparability of results .2% 55.

delights usable

4% with ongoing constant currency revenues
up 4.37-$0. Momentum continued on new products
launched last year, including DiGiorno Microwave Rising Crust Pizza,
Nabisco 100 Calorie Packs, Milka M-joy chocolate tablets in Europe and
the Tassimo hot beverage system in France .
----------------

Q1 2005 vs Q1 2004
% Chg. Impact
------------------
Net Revenues 6. $0. impact from the yogurt divestiture.
U. Biscuits revenue growth was driven by strong new product
results including Nabisco 100 Calorie Packs and Honey Maid soft baked
bars, as well as solid base business growth on Wheat Thins crackers
and Triscuit crackers. Revenues in Sweden were up double-digits, although
growth was aided by trade purchases of coffee in advance of price
increases. The food industry is also subject to
consumer concerns regarding genetically modified organisms and the
health implications of obesity and trans-fatty acids.9 %
Minority interest in earnings from
continuing operations, net - 1
Earnings from continuing operations $699 $550 27.

KRAFT FOODS INC. Cheese, U.4%

Divested Businesses:
- Divested
Businesses
- 2005 (7) - (7) (37)
- Divested
Businesses
- 2004 (9) - (9) (43)

Ongoing Volume -
Including Acquisitions
2005 Volume 655 496 1,151 4,509
2004 Volume 645 501 1 ,146 4,398
% Change 1.

confections empress

(Click here for details)
President/CEO Jim Williams stated, "We are very excited about entering the
frozen food category.40 because of lower than expected taxes ($0.02 per share). Due to the breadth of pricing actions
across its portfolio in 2005 as well as the company's efforts to drive
favorable product mix, volume growth is expected to lag revenue growth
and is projected at around 2.41,
reflecting the following impacts:

Q1
------------------
2004 E.41

Total pre-tax restructuring and impairment charges in 2005 were
$169 million (corresponding to a $0.5%, below the company's previous expectation of 33.6 pp
Divestitures/Other (0. Despite
these higher prices, the company maintained price gaps versus key
competitors within targeted ranges. Effective price gap management and
increased advertising contributed to an aggregate dollar market share
gain for the top 25 categories in the U. Excluding these charges, OCI was down as higher
commodity costs (net of pricing), increased post-employment benefit
costs and increased consumer marketing spending were partially offset
by positive mix and cost reduction efforts.3)pp. Oscar Mayer revenues were up due to both volume growth and
higher prices.6% behind volume growth, positive mix and higher
prices .
Ongoing volume was up 0.
Following are first quarter results by segment for KIC. Revenues were up in several
other markets, including Australia, the Caribbean and Venezuela.3% 4.5% 8.
and Subsidiaries
Operating Companies Income by Business Segment
For the Quarters Ended March 31, (a)
($ in millions)

U.
and Subsidiaries
Condensed Balance Sheets
($ in millions, except ratios)

March 31, December 31,
2005 2004
------- ----- ------------
Assets
------
Cash and cash equivalents $220 $282

Receivables 3,635 3,541

Inventory 3,712 3,447

Assets of Discontinued Operations
held for sale 1,453 1,458

Other current assets 1,105 994

Property, plant and equipment, net 9,821 9,985

Goodwill 25,101 25,177

Other intangible assets, net 10,563 10,634

Other assets 4,530 4,410
------------ ------------

Total assets $60,140 $59 ,928
============ ============

Liabilities and Shareholders' Equity
------------------------------------

Short-term borrowings $2,192 $1,818

Current portion of long-term debt 420 750

Due to Altria Group, Inc.

confectionaries dips

Additionally,
international business results improved behind strong growth in
developing markets, where ongoing constant currency revenues were up
15 %, reflecting gains in most markets as well as a weak prior year.6 pp

Operating Income 18. In response, the
company announced price increases on certain products in the first
quarter, including coffee in the U. and certain international
markets and cold cuts, in addition to the price increases taken across
multiple categories in the latter part of 2004.02 per share) was anticipated, and reflects the impacts on
operating income described above , including higher commodity costs net
of pricing, increased post-employment benefit costs and restricted
stock expense ($0.4% due to the
positive resolution of outstanding tax items, most of which occurred
in the first quarter. Higher than expected crude oil and gas prices are the drivers of
increased energy and packaging costs.5%. (For a reconciliation of OCI to operating income, see the
Condensed Statements of Earnings contained in this release./pp.4%
Volume/Mix 1." advertising campaign.1% to $108 million due primarily to the fruit snacks
divestiture impairment charge of $93 million.1% 28.5% 0.2% (1. America Convenient U. + America
--------- ----------- ---------- ------- ------- ----------
Beverages Foodservice Meals Grocery Cereals Commercial
--------- ----------- ---------- ------- ------- ----------
2005 Net
Revenues $732 $1,816 $1,090 $582 $1,333 $5,553
2004 Net
Revenues 671 1,708 1,048 591 1,274 5,292
% Change 9.

kosherline cornucopia

Monterey Gourmet Foods, Inc. (NYSE:KFT):

Solid progress on Sustainable Growth Plan including new
product innovations, market share gains in North America,
portfolio transformation efforts and developing market growth

Net revenues up 6.P. from continuing operations up
28. On external development
initiatives, the previously announced sales of the U. Also reflected
in the new guidance is a tax favorability ($0.73-$1. The
company currently projects a 2005 effective tax rate of approximately
31. Strong cold cuts results were driven by continued
strength in the Oscar Mayer deli shaved meats line, as well as
increased spending behind the "Oh, I Wish . In Meals, net revenues were up behind
the introduction of South Beach Diet frozen entrees, as well as good
performance for Stove Top stuffing due to the shift in Easter timing .0% to $191 million as higher meat, dairy and
packaging costs and increased post-employment benefit costs were
partially offset by higher prices and cost reduction efforts. In Desserts, Cool Whip frozen toppings
revenues were up due to the shift in Easter timing and Kraft
Handi-Snacks puddings and gelatins grew behind distribution gains.0 pp
Impact of Net Gain On Sales Of Businesses 49.7 %
------------------
Earnings from continuing operations before
minority interest 699 551 26.11

- 2005 Gains on Sales of Businesses 67 0.S.5% 0.S.1% 6.8%

Reconciliation:
---------------
2004 Operating
Companies Income $155 $33 $188 $1,021

- Divested
Businesses
- 2005 3 - 3 5
- Divested
Businesses
- 2004 (6) - (6) (9)

- Asset Impairment
and Exit
Costs - 2005 (30 ) (3) (33) (150)
- Asset Impairment
and Exit
Costs - 2004 32 14 46 291

- Implementation
Costs - 2005 (5) - (5) (19)
- Implementation
Costs - 2004 1 - 1 1

- Gains on Sales of
Businesses - 2005 115 1 116 116

- Currency 14 3 17 22

- Operations (26) (8) (34) (75)
------------ ------------ ------------ -----------

2005 Operating
Companies Income $253 $40 $293 $1,203
============ ============ ============ ===========

(a) Due to changes for Discontinued Operations and a new segment
structure, prior period results have been restated.

deli basketeers

'OneStep Gourmet' is just
the latest step in that direction, joining earlier initiatives that include
the development of new product lines and strategic acquisitions . Monterey
Gourmet Foods has introduced new products such as refrigerated entrees,
grilled wraps and whole wheat pastas.S.73-$1. Retail sell-in was strong
on items launched this year, including the South Beach Diet product
line, new Crystal Light powdered beverages and Oscar Mayer
ready -to-serve meat line extensions.
CEO Deromedi added, "In updating our full year guidance, our
fundamental outlook on the year remains largely unchanged.04 EPS impact) resulting
from the fruit snacks divestiture .S.04 per share versus the previous
guidance due to the first quarter $93 million pre-tax asset impairment
charge on the fruit snacks business.S.7 pp
Net Pricing 1. Declines in these businesses were partially offset by solid
gains in both Kraft mayonnaise and Kraft Miracle Whip. Impact
------------- -----
Net Revenues 9.2% to $253 million, benefiting from a
gain on sale of the United Kingdom desserts business, higher volume,
positive mix and favorable currency, partially offset by higher coffee
and confectionery costs and increased marketing spending .

Kraft Foods Inc. The
food industry continues to be subject to recalls if products become
adulterated or misbranded, liability if product consumption causes
injury, ingredient disclosure and labeling laws and regulations and
the possibility that consumers could lose confidence in the safety and
quality of certain food products.3 %
==================

Per share data:
Basic earnings per share:
Continuing operations $0.01 $0.3 %
==================
Weighted average number of
shares outstanding - Basic 1,696 1,717 (1.03)
--------- ---------

2005 Continuing Earnings $699 $0.S.2% 21.

shiva tortillas

----Kraft Foods
Inc.5%

First quarter diluted E.41

Projected full-year 2005 diluted E.78, up 12-15% versus 2004 (includes
$0. categories (based on Operating Companies
Income), aggregate dollar market share on a weighted average basis was
up 0. $0.73-$1.
The $0.5 percentage points of benefit from
an additional shipping week in 2005.1%, driven by growth in both Refreshment Beverages and
Coffee. of benefit from favorable currency
and (0. Ongoing constant
currency revenue growth of 4./pp.6) pp
Ongoing Constant Currency Revenues 4.2%, driven by favorable currency, positive mix and higher
volume. Ongoing
constant currency revenues increased 8. These
gains were partially offset by a decline in China, due to aggressive
competitive activities in biscuits and refreshment beverages.

The company will host a conference call for members of the
investment community to review its results at 5:00 p. 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. 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; any such statement is qualified by reference to the following
cautionary statements . The
company's assessment of the fair value of its operations for purposes
of assessing impairment of goodwill and intangibles is based on
discounting projections of future cash flows and is affected by the
interest rate market and general economic and market conditions.41 $0.3 %
==================
Diluted earnings per share:
Continuing operations $0.32

- 2005 Asset Impairment, Exit +
Implementation Costs (112) (0.42
========= =========

(a) Due to a change for Discontinued Operations, prior period results
have been restated.
and Subsidiaries
Volume by Business Segments
For the Quarters Ended March 31, (a)
(pounds in millions)

U.3% 0.0% 1.2% 4.

(a) Due to changes for Discontinued Operations and a new segment
structure, prior period results have been restated . Cheese, U.S.

cornucopia kosherline

While increased prices also contributed to
revenue growth, we maintained price gaps within targeted ranges and
grew market share across our portfolio. desserts businesses received regulatory approval
and were completed. $1.P.3 points (on a
weighted average basis), continuing the momentum from the second half
of last year.3% driven by acquisitions .S.3%, including 2.
Segment OCI was down 3. Additionally in France,
retailer response to and initial sales of Tassimo hot beverage
machines have been strong.kraft. is the largest branded food and beverage company
headquartered in the United States and the second largest worldwide.

Forward-Looking and Cautionary Statements

This press release contains projections of future results and
other forward-looking statements.9 %
Marketing, administration
and research costs 1,718 1,587
Asset impairment and exit costs 150 291
Gains on sales of businesses (116) -
--------- ---------
Operating companies income 1,203 1,021 17.8 %
Amortization of intangibles 3 2
General corporate expenses 43 46
------------------
Operating income 1,157 973 18.4 %
Provision for income taxes 282 257 9.33 27.S.4%

Europe, Latin
------------ ------------
Middle America Kraft
------------ ------------ -----------
East + + Asia Int 'l Total
------------ ------------ ------------ ----------
Africa Pacific Commercial Kraft
------------ ---- -------- ------------ -----------
2005 Net Revenues $1,888 $618 $2,506 $8 ,059
2004 Net Revenues 1,713 570 2,283 7,575
% Change 10.S.6)% 23.

cookbooks delicatessen

1% to $0.S. yogurt and
U. Due to these
investments in growth initiatives, as well as increased prices from
higher commodity costs, the company increased its guidance for ongoing
constant currency revenue growth(1) from around 4.5% on a 53-week basis (from around 3% to a range of 3% - 4%
on a comparable 52-week basis).2) pp
Ongoing Constant Currency Revenues 4. Ongoing volume was up 2.32
Increase/(Decrease) Due To:
Restructuring/Impairment Charges - 2004 0. desserts sale.22 in restructuring and impairment
charges and $0 . The restructuring program remains
on track, and the full-year projection for pre-tax exit and
implementation costs on this program is unchanged at $440-$470 million
(corresponding to a $0.18 EPS impact). and Germany and
investment behind a line of chocolate-based biscuit products in the
U. Impact
------------------
Net Revenues 4. Ongoing volume was up 3.6% to $163 million due primarily to higher coffee,
energy and packaging costs, net of higher pricing.
Segment OCI was up substantially from $52 million to $197 million due
to significantly lower restructuring and impairment costs ($146
million ), volume growth, positive mix and higher prices, partially
offset by higher nut, energy and packaging costs and increased
consumer marketing spending.8% to $2.4%, and was below revenue growth due to the
impact of higher prices on consumption growth and the elimination of
slower moving products .4%, driven by positive mix, higher prices and favorable currency,
partially offset by the impact of a divestiture in 2004.m.1 %
Discontinued operations $0.S.1% 4.

glatt cookbooks

"OneStep Gourmet"
meals have already been authorized in more than 140 club stores with
additional expansion projected for the balance of the year. For more
information about Monterey Gourmet Foods, visit
www. Diluted earnings per
share was above the company's previous first quarter guidance range of
$0.73-$1. All references in this
release are to continuing operations, unless otherwise noted ./pp.
Post-employment benefit costs and restricted stock expense together
were up $55 million in the quarter.04
Taxes 0.P.S.04)
Other Operations / Taxes 0.02 per share).6 billion and ongoing
constant currency revenues were up 4.S. Segment
OCI decreased 3.
Cheese revenue growth included both higher prices and increased volume
behind strength in Kraft natural cheese, Philadelphia cream cheese and
Velveeta processed cheese, aided in part by the shift in Easter
timing. Segment OCI
increased 23.
OCI increased 55.
Each of the company's segments is subject to intense competition,
changes in consumer preferences and demand for its products, including
diet trends, the effects of changing prices for its raw materials and
local economic and market conditions.1 %
Discontinued operations $0.01
------------------
Net earnings $0.01

- Operations (55) (0.S. + America
--------- ----------- ---------- ------- ------- ----------
Beverages Foodservice Meals Grocery Cereals Commercial
--------- ----------- -- -------- ------- ------- ----------
2005 Operating
Companies
Income $163 $251 $191 $108 $197 $910
2004 Operating
Companies
Income 169 203 197 212 52 833
% Change (3.30

shiva caviar

This new product line, developed
over the past eight months, provides a restaurant quality meal that is
prepared in a skillet and is ready to eat in minutes.03 per share),
partially offset by higher than expected restructuring and impairment
charges ($0. Tax
favorability more than offsets higher energy and packaging costs , and
we are taking the opportunity to invest a portion of this favorability
into key growth initiatives , including the launch of the Tassimo hot
beverage system in the U.4) pp

The company maintained its top-line momentum from the second half
of 2004, with first quarter net revenues up 6.1 billion and
ongoing constant currency revenues up 4. This volume decline reflects
the company's continuing efforts to improve its mix by focusing on
higher profit items, the elimination of slower moving products and the
impact of higher prices on category growth rates. Discretionary cash flow is available to finance
acquisitions, repay maturing debt, and distribute to shareholders.9 pp
Acquisitions 0. of 0.
U.
U.S. Convenient Meals net revenues and ongoing constant currency
revenues were up 4.
This growth was offset by declines in dry and refrigerated packaged
desserts, which had a strong year-ago comparison period on sugar-free
varieties. Segment OCI was
down 49. Retail sell-in and
initial shipments for new products, including South Beach Diet
cereals, cereal bars and meal replacement bars, have been strong.

KRAFT INTERNATIONAL COMMERCIAL (KIC)
------------------------------------

Q1 2005 vs Q1 2004
% Chg.04

- Change in Tax Rate 49 0.5% 3.5% 3.S.6% 4.0)% (49.

confections cornucopia

from continuing
operations of $1. Diluted
earnings per share from continuing operations were up 28. In the
company's top 25 U.
Finally , the company's cost restructuring program remained on track,
with the announcements of two more planned facility closures during
the first quarter.06 per share), partially
offset by investments in key growth initiatives ($0. The impact of
commodities net of pricing was negative in the first quarter because
of the lagged impact of the pricing relative to the cost changes.07)
Gains On Sales of Businesses - 2005 0. This benefit was primarily driven by the resolution of
outstanding items in the company's international operations as well as
other benefits, including the impact of the domestic manufacturers'
deduction under the American Jobs Creation Act.75-$1.S. New products Crystal Light Sunrise Ruby Red Grapefruit and
Crystal Light On-The-Go performed well.
Additionally , early results are encouraging on the new items in the
Oscar Mayer ready-to-serve breakfast meat line, including pork sausage
and Canadian bacon.S. Salted Snacks revenues were down slightly, as
higher prices and consumption growth on nuts were more than offset by
the impact of retail inventory reductions. In Cereals, revenues were
up solidly behind volume growth and positive mix. In Russia , strong revenue growth was driven by volume gains
in all key coffee and confectionery brands, partially due to favorable
comparisons to prior year results that included significant customer
inventory reductions. In France, revenues
were down slightly, as volume growth was more than offset by increased
promotional spending associated with the price gap management actions
taken in the second half of last year.2% to $40 million, reflecting lower
restructuring and impairment charges, higher prices and positive mix,
partially offset by higher costs, increased marketing spending and
higher infrastructure investment.41 $0.0)% 0.5)% 4.

kosherline lunches

Our specially designed 'OneStep Gourmet' bag
contains everything today's discerning consumer needs for a high quality,
quick, and well balanced meal.

Williams summarized, "As we reported during our 2005 Shareholder Meeting,
one of our key strategies is an intensive new products program focused
outside of our strong base of pasta and sauces. Monterey Gourmet Foods' USDA-inspected fresh refrigerated
gourmet food products are produced at facilities in Salinas (Monterey
County), California; Eugene, Oregon; and Seattle, Washington.02 per share) and
higher energy and packaging costs ($0. Consumer marketing spending
increased approximately $50 million, primarily reflecting increased
advertising, as the company invested behind new product initiatives . The asset impairment charge on the
fruit snacks business was not included in the company's previous first
quarter earnings guidance. First quarter results reflect pre-tax gains on the
sales of businesses of $116 million (corresponding to a $0.02 EPS impact), partially offset by positive mix and
favorable currency ($0.
As a result of the investment in growth initiatives and recent
pricing actions, the company increased its full-year guidance for
ongoing constant currency revenue growth from around 4.2%
Impact of Change In Restructuring + Impairment
Charges 12.4% reflecting the company's
efforts to improve product mix, the elimination of slower moving
products and retail inventory reductions in ready-to-drink beverages. Cheese, Canada + North America Foodservice net revenues
increased 6. Canada revenues were down due to competitive pressures in
biscuits and coffee and declines in ready-to-drink beverages. .
U.7 pp

Operating Companies Income (OCI) 55. Revenue
results for reporting segments are discussed on both a net revenue and
ongoing constant currency revenue basis; all revenue results below the
segment level are discussed on an ongoing constant currency revenue
basis.5% with growth
across most markets. Revenues were also up in numerous other markets,
reflecting share gains in Jacobs coffee and confectionery growth in
Ukraine, successful launches of Milka M-joy in Romania and Bulgaria,
and higher Tang sales in the Middle East and Africa. In Germany,
revenues were down despite a coffee price increase, as volume declined
due to delayed pricing actions by key competitors. The company's benefit expense is subject to the
investment performance of pension plan assets, interest rates and cost
increases for medical benefits offered to employees and retirees. The company does
not undertake to update any forward-looking statement.01
------------------
Net earnings $0.

KRAFT FOODS INC. Cheese, U. Snacks North
----------- ---------- ------- ----------
North
U.S.4% 9. America Convenient U.

holon tortillas

PRESS RELEASE Monterey Gourmet Foods Announces Entry Into Frozen Category

These complete one-skillet meals go from freezer to
table in minutes ."
During the first quarter, effective price gap management and
increased advertising spending improved consumer Brand Value across
much of Kraft's portfolio.1 pp
Impact of Net Gain On Sales Of Businesses 9.2 pp
Impact of All Other (4.04 EPS
impact), primarily attributable to the U.03 per share benefit versus prior
year.04 in gains on the sales of businesses.P.5% to a range
of 4. Management believes it is appropriate to disclose
this measure to help investors analyze business performance and
trends.
Following are first quarter results by segment for KNAC. Refreshment Beverages growth benefited from the Veryfine
beverages acquisition and strength in Crystal Light powdered
beverages, partially offset by a decline in full -sugar powdered
beverages. Snacks + Cereals net revenues and ongoing constant currency
revenues were up 4.32 28.42 $0.41
--------- --- ------
2005 Discontinued Earnings $14 $0. America Convenient U.7% 1.6% (3.

holon supervised

Monterey Gourmet Foods has been known for years as a
leader in gourmet refrigerated foods, so expansion into the frozen food
category is a natural for us. They developed and launched this totally new line in a
relatively short period of time compared to the industry standards.5% - 5. While we have raised our
full-year revenue guidance because of these growth initiatives and
commodity-driven price increases, our key watchout in the remainder of
the year will be the impact that higher prices could have on our
consumption growth, particularly during the pricing implementation
periods.4% to $8.S.80
Increase/(Decrease) Due To:
Restructuring And Impairment Charges (0.78

The company's current guidance for total restructuring and
impairment charges in 2005 is up $0.06 per share)
partially offset by investments in key growth initiatives ($0.S.6% reflected commodity-driven pricing.6% to $251 million due to lower restructuring and
impairment charges and higher prices, partially offset by higher
commodity costs and increased post-employment benefit costs. Pizza revenue growth was driven by positive mix,
higher prices and strong new product results, including DiGiorno
Microwave Rising Crust Pizza.
Segment OCI increased 21. In addition , the company is
subject to the effects of foreign economies, currency movements,
fluctuations in levels of customer inventories and credit and other
business risks related to its customers operating in a challenging
economic and competitive environment. Snacks North
----------- ---------- ------- ----------
North
U.5%

----------------------------------------------------------------------

Memo: Acquired Businesses
Volume - 3 3 122

(a ) Due to changes for Discontinued Operations and a new segment
structure, prior period results have been restated.

KRAFT FOODS INC.6% 4.8% 6.5%

(1) The company's top-line guidance measure is ongoing, constant
currency revenue growth, which includes acquisitions and excludes
divestitures and implementation costs associated with the company's
restructuring program.

cookbooks delights

MontereyGourmetFoods.02 per share). Deromedi, Chief Executive Officer of Kraft Foods.K. desserts businesses were completed as planned, the divestiture of
the sugar confectionery business progressed toward an expected
completion in the second quarter, and the company announced on April
12 an agreement to sell its fruit snacks business.5%.11
Restructuring/Impairment Charges - 2005 (0. The decline was attributable to $140
million in increased pension contributions, approximately $50 million
in higher cash spending on the restructuring program and the impact of
higher commodity costs on inventory valuations.3 million shares
of Class A common stock for $175 million. The key growth initiatives include the launches
of the Tassimo hot beverage system in the U.9 billion, which excludes estimated proceeds of
approximately $1.
As described in "Note 14, Segment Reporting" of Kraft Foods Inc.9%
Currency 0.
These impacts were partially offset by solid consumption growth across
much of the portfolio. .8%
Currency 5.8 pp
Divestitures/Other (0.9%
Impact of Change In Restructuring + Impairment
Charges 15.0% 1.5)% 4.2% 8.

KRAFT FOODS INC.2%

Reconciliation:
--------------
2004 Operating
Companies
Income $169 $203 $197 $212 $52 $833

- Divested
Businesses
- 2005 - 2 - - - 2
- Divested
Businesses
- 2004 - (3) - - - (3)

- Asset
Impairment
and Exit
Costs -
2005 (2) (14) (2) (95) (4) (117 )
- Asset
Impairment
and Exit
Costs -
2004 6 62 9 9 159 245

- Implementation
Costs
- 2005 - (4) (1) - (9) (14)
- Implementation
Costs
- 2004 - - - - - -

- Gains on
Sales of
Businesses
- 2005 - - - - - -

- Currency - 5 - - - 5

- Operations (10) - (12) (18) (1) (41)
--------- ----------- ---------- ------- ------- ----------

2005 Operating
Companies
Income $163 $251 $191 $108 $197 $910
========= =========== ========== ======= ======= ==========

Europe, Latin
------------ ------------
Middle America Kraft
------------ ------------ -----------
East + + Asia Int'l Total
--------- --- ------------ ------------ ----------
Africa Pacific Commercial Kraft
------------ ------------ ------------ -----------
2005 Operating
Companies Income $253 $40 $293 $1,203
2004 Operating
Companies Income 155 33 188 1,021
% Change 63.

Category specifically for Kosher foods and suppliers of same, selling online.

kosher empress

04 per share in
gains on the sales of businesses)

Kraft Foods Inc.S.
The company updated its full-year diluted earnings per share
guidance range for continuing operations to $1. and Germany. As such, net revenues and operating
companies income for the sugar confectionery business are excluded
from the company's results , while the net earnings impact is included
as a single line item in reported earnings.
Operating income increased 18.

2005 Outlook

For the full-year, the company projects diluted earnings per share
of $1. In the second quarter, the
impacts of higher prices and the shift in Easter timing are expected
to result in volume growth excluding acquisitions that is similar to
first quarter growth, with the company's efforts to improve mix again
benefiting revenue growth.8 pp

Operating Companies Income (OCI) 9.
Excluding acquisitions, volume declined 0.0% , reflecting positive mix and higher prices in
both meat and pizza.
Europe, Middle East and Africa first quarter net revenues
increased 10. Access to a live audio webcast and presentation slides is
available at www. Any forward-looking statements in
this press release are made as of the date hereof.03

- Currency 14 0.S. Kraft
----------- ------- ----------
Canada + U.1%

Divested
Businesses:
- Divested
Businesses
- 2005 - (30) - - - (30)
- Divested
Businesses
- 2004 - (34) - - - (34)

Ongoing Volume -
Including
Acquisitions
2005 Volume 749 1,052 555 411 591 3,358
2004 Volume 666 1,045 555 404 582 3,252
% Change 12.7% 0.9% 17.

glatt kashrut

(NYSE:KFT ), a global leader in branded food and
beverages, today announced first quarter 2005 results that included
solid progress against its Sustainable Growth Plan and continued
top-line momentum.07 EPS impact). $1.5)pp

First quarter net revenues grew 4.
OCI increased 9. Excluding acquisitions,
revenues in ready-to-drink beverages were essentially flat to the
prior year, while volume declined slightly due to category softness
and retail inventory reductions.
and Subsidiaries
Condensed Statements of Earnings
For the Quarters Ended March 31, (a)
(in millions, except per share data)

2005 2004 % Change
------------------ ---------

Net revenues $8,059 $7,575 6.01 $0.
and Subsidiaries
Net Revenues by Business Segment
For the Quarters Ended March 31, (a)
($ in millions)

U.4%

Reconciliation:
---------------
2004 Net Revenues $1,713 $570 $2,283 $7,575

- Divested
Businesses
- 2005 12 - 12 34
- Divested
Businesses
- 2004 (17) (7) (24) (49 )

- Acquired
Businesses - 1 1 42

- Currency 121 9 130 164

- Operations 59 45 104 293
------------ ------------ -------- ---- -----------

2005 Net Revenues $1,888 $618 $2,506 $8,059
============ ============ ============ ===========

--------------------------- -------------------------------------------

Memo: Ongoing, Constant
Currency Revenues (1)
% Change 3.S.

KRAFT FOODS INC.30 0.

basketeers tortillas

(NASDAQ: PSTA)
today announced an expansion into the frozen food category with its newest
product line , "OneStep Gourmet" meals.P.1% to $0.5% to a range of
4.5% in total,
but was down 0.S.02)
------------------
Net Increase 0. yogurt and U.K.01 EPS impact). These costs are generally more
difficult for the company to recover through price increases in the
near-term. Ongoing
constant currency revenues were up 4.1 %
Earnings from discontinued operations,
net of income tax 14 10
------------------
Net Earnings $713 $560 27.32 28.2)%
- Diluted 1,703 1,720 (1.0)% 0.4% 2.6% 4.6% 4. Snacks North
----------- ---------- ------- ----------
North
U.

basketeers confectionaries

Each meal contains a protein, vegetables,
pasta and our innovative sauce cube that turns into a delicious sauce to
complement the dish. Together, they represent our focus on diversified growth
to minimize dependence on any one product category."

Founded in 1987, Monterey Gourmet Foods now produces more than 100
different fresh gourmet food products for the premium food consumer that
are distributed in more than 9,700 retail and club stores throughout the
United States, selected regions of Canada, the Caribbean, Latin America and
Asia Pacific.

com.

Kraft Foods Inc. Reports First Quarter 2005 Results; Sustainable Growth Plan Progress Continues

41,
despite significantly higher commodity costs.
"Kraft's first quarter results reflect solid progress against our
Sustainable Growth Plan.3 points, extending the positive trend that began in the second
half of 2004.S. The company believes this measure better
represents the revenue growth prospects of the business on a
go-forward basis and provides improved comparability of results.1 pp
Divestitures/Other (0.3 pp
Net Pricing 1.6 pp
Acquisitions 0.03
All Other Operations (0. These charges
reflect pre -tax exit and implementation costs associated with the
company's three-year restructuring program of $76 million
(corresponding to a $0.03 EPS impact) and a pre-tax asset impairment
charge of $93 million (corresponding to a $0.S.
Discretionary cash flow(2) was $103 million in the first quarter ,
down from $346 million in 2004.'s
2004 Annual Report, management reviews operating companies income
(OCI), which is defined as operating income before corporate expenses
and amortization of intangibles, to evaluate segment performance and
allocate resources. Beverages net revenues and ongoing constant currency revenues
increased 9.S Grocery net revenues and ongoing constant currency revenues
were down 1. The company may, from time to time, divest businesses that
are less of a strategic fit within its portfolio, and its results may
be impacted by either the gains or losses , or lost operating income,
from the sales of those businesses.4 %
Cost of sales 5,104 4,676 9.1%

Reconciliation:
---------------
2004 Continuing Earnings $550 $0.01
--------- ---------
2005 Net Earnings $713 $0. Kraft
----------- ------- ----------
Canada + U.

caviar delights

4%, with ongoing
constant currency revenues up 4. "On
the top-line, we continued to drive favorable mix, with revenue growth
outpacing volume growth.
Kraft Foods results are discussed on a continuing operations
basis, following the company's agreement on November 15 , 2004 to sell
its sugar confectionery business, and the treatment of this business
as discontinued operations. Growth reflected positive
mix, strong new product and developing market results, the impact of
higher marketing spending, commodity-driven price increases and the
shift in Easter timing from mid-April last year to late March this
year.
During the quarter, the previously announced divestitures of the
U.02 EPS impact together) and increased marketing
spending ($0.
During the quarter, the company declared a regular quarterly
dividend of $0.7 pp
Impact of All Other (3.5% as volume growth was more than offset by adverse
product mix and increased promotional spending associated with the
shift in Easter timing.9 pp
Net Pricing 0.4 pp
Impact of All Other (8.5)pp

First quarter net revenues increased 9.5 billion.6%, driven by strong results in
developing markets (+15%), including Russia, Ukraine, Brazil,
Venezuela and Southeast Asia, and solid results in the United Kingdom
and Nordic region. While revenues were up in most markets , revenues in
Germany declined on lower volume following a price increase on coffee.9% to $293 million in the first quarter,
benefiting from a $115 million pre-tax gain on sale of the desserts
business in the United Kingdom and lower restructuring and impairment
charges. Ongoing constant currency revenue increased 3.2%, reflecting growth in both
the Latin America and Asia Pacific regions. One can also identify them by the fact that they
do not relate strictly to historical or current facts.9 %
Interest and other debt expense, net 176 165
--- ---------------
Earnings from continuing operations before
income taxes and minority interest 981 808 21. + America
--------- ----------- ---------- -- ----- ------- ----------
Beverages Foodservice Meals Grocery Cereals Commercial
--------- ----------- ---------- ------- ------- ----------
Volume
2005 Volume 749 1,082 555 411 591 3,388
2004 Volume 666 1,079 555 404 582 3,286
% Change 12.3%

-------------------------------------------------- --------------------

Memo: Acquired Businesses
Volume 103 16 - - - 119

Europe, Latin
------------ ------------
Middle America Kraft
------------ ------------ -----------
East + + Asia Int 'l Total
------------ ------------ ------------ ----------
Africa Pacific Commercial Kraft
------------ ---- -------- ------------ -----------
Volume
2005 Volume 662 496 1,158 4,546
2004 Volume 654 501 1,155 4,441
% Change 1. Kraft
----------- ------- ----------
Canada + U.

kashrut cornucopia

22 in exit and implementation costs for the restructuring
program and asset impairment charges and $0. First quarter net revenues grew 6.5% behind positive mix, strong new
product results, developing market growth, the impact of higher
marketing spending and commodity-driven price increases.78.4%
Currency 2.4%. Revenue
results for reporting segments are discussed on both a net revenue and
ongoing constant currency revenue basis; all revenue results below the
segment levels are discussed on an ongoing constant currency revenue
basis. New product results across the segment were
strong. In Enhancers, salad dressing and barbeque sauce revenues
were down, reflecting category softness and increased competitive
activity. Revenues in the United Kingdom grew behind strong
promotions in Philadelphia cream cheese and new Dairylea process
cheese products. Southeast Asia revenues increased due to strong growth in
Tang and Cheez Whiz in the Philippines. The company's
results are also dependent on its ability to consummate and
successfully integrate acquisitions and to realize the cost savings
and improved asset utilization contemplated by its restructuring
program. The company cautions that the foregoing list of
important factors is not exclusive.42 $0.0)%

(a) Due to a change for Discontinued Operations, prior period results
have been restated.07)

- 2004 Asset Impairment, Exit +
Implementation Costs 186 0.

pareve deli

"

"OneStep Gourmet" gourmet meals are available in three flavors; Grilled
Chicken and Garlic Cheese Tortelloni in a Zesty Marinara Sauce; Chicken,
Broccoli and Tortelloni in a Pesto Alfredo Sauce; and Shrimp and Garlic
Cheese Tortelloni in a Lemon Alfredo Sauce.

Business Editors

NORTHFIELD , Ill.
The company also improved its portfolio through both internal and
external development initiatives . Included in
the guidance is approximately $0."
(1) The company's top-line guidance measure is ongoing constant
currency revenue growth, which includes acquisitions and excludes
divestitures and implementation costs associated with the company's
restructuring program.
The decline in net earnings impact from all other operations
($0.78, including $0.S.
(2) The company defines discretionary cash flow as net cash
provided by operating activities less capital expenditures, and
utilizes this measure for its cash flow guidance because it believes
it more fully reflects both ongoing cash generation and usage
activities. This growth comprises 3% - 4% growth on a comparable
52-week basis and approximately 1.1) pp
Ongoing Constant Currency Revenues 4.9% to $5. In
Foodservice, revenues were up, reflecting price increases on cheese,
meat and coffee, along with growth in national accounts.
U.
Latin America and Asia Pacific first quarter net revenues grew
8. These
statements are based on the company's assumptions and estimates and
are subject to risks and uncertainties. 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 .32
% Change 27.3% 2.0% (1.S.

empress lunches

The acquisitions of Casual Gourmet
Foods and Sonoma Cheese Company earlier this year have allowed us to expand
into the areas of award winning sausages, premium refrigerated soups and
gourmet cheeses.

These efforts contributed to strong revenue
growth, positive product mix and improved market shares.5%
Volume/Mix 2.1% versus the prior year to $0.09

2005 E.K.
Lower taxes resulted in a $0.02
------------------
Net Change $(0.4 billion from announced divestitures. Prices were higher than the prior year in
several businesses, including coffee , cheese, nuts and meat. In Coffee, revenues were up double
digits behind price increases and positive mix, reflecting strong
growth in both Starbucks and Gevalia premium brand coffees.
Segment OCI increased 63. Their results are dependent upon
their 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. The company's results are
affected by its access to credit markets, borrowing costs and credit
ratings, which may in turn be influenced by the credit ratings of
Altria Group, Inc.

KRAFT FOODS INC.33 27.0% (1.1)% 100+ % 9.