Re Agreement

Glanbia PLC
02 February 2005


             Glanbia plc and Dairygold Co-operative Society Limited
                               Joint Announcement


                          Glanbia to take on CMP brand.

                    Milk Processing Co-operation Agreement.


Glanbia plc and Dairygold Co-operative Society Limited today (2 February 2005)
confirm that, subject to the approval of the Irish Competition Authority,
Glanbia will operate the CMP liquid milk, cream and juice branded business of
Dairygold. The consideration is €10.05m.

This development includes the relevant sales and distribution assets of CMP but
excludes the production and chill facility. Under the new arrangement
Dairygold's 130 liquid milk suppliers will continue to supply Dairygold and
Dairygold will sell the 6.15m gallon CMP liquid milk pool on to Glanbia.

Glanbia will continue to supply the CMP milk, dairy and juice brands into the
Cork area, including continuing CMP door-to-door deliveries.

In addition Glanbia and Dairygold have also confirmed that they have agreed in
principle to enter into a contract manufacturing arrangement for elements of
their respective milk processing activities. This is subject to finalisation of
contract negotiations, which are ongoing. Once finalised the arrangement is
designed to enhance capacity utilisation, as well as maximise scale and
efficiency for both parties as advocated by the recent Prospectus report.

Under the terms of this agreement Dairygold will supply a volume of cream to
Glanbia annually, beginning in 2005, for the contract manufacture of Dairygold
branded butter and butter oil at Glanbia's Ballyragget butter production
facility.  In addition Glanbia will purchase a volume of whey from Dairygold for
processing.

Glanbia will supply Dairygold a volume of milk for contract manufacturing into
Glanbia dairy products at Dairygold's Mitchelstown plants, from 2006 onwards.

As appropriate both parties will make capital investments in their respective
facilities and both parties will continue to maintain their own existing
separate commercial arrangements with milk suppliers and customers.

Commenting, Glanbia plc Group Managing Director, John Moloney, said:

'This development regarding the CMP brands and the contract manufacturing
agreement with Dairygold are in line with Glanbia's strategy of maximising scale
and efficiency in the most appropriate way.  The CMP brands will further
strengthen Glanbia's Consumer Foods' customer offering as one of Ireland's
leading suppliers of chilled foods and beverages to the retail and food service
sectors. Likewise the contract manufacturing agreement is consistent with our
strategy of developing further industry alliances and co-operation to achieve
mutual efficiencies.  Glanbia has a long track record of co-operation with other
processors, including Dairygold, and we view this mechanism as a sensible way
forward for the industry.'

Mr Jerry Henchy, Dairygold Chief Executive, said:

'The decision to exit the liquid milk business was not taken lightly but in
light of the highly fragmented nature of the sector, growing volumes of imported
milk and the downward price pressure exerted by the multiples on the margins
that can be achieved, it is the right business decision for Dairygold and its
liquid milk suppliers. The Glanbia Dairygold co-operation agreement is a very
positive move in the Irish dairy sector. Calls for consolidation of the industry
have been made for many years, but progress to achieve meaningful
rationalisation has been slow. This is partly because the route to
rationalisation was generally perceived as being through takeovers or mergers.
We have developed a pragmatic solution where we will be happy to co-operate with
neighbours where appropriate to share facilities and production assets to
contract manufacture dairy products as cost-efficiently as possible'.


Ends
2nd February 2005



For reference:

Glanbia plc
Geraldine Kearney
Director of Corporate Communications
Telephone: [phone] Mobile [phone]

Dairygold Co-operative Society Ltd
Pat Keating
Keating and Associates
Telephone : [phone] Mobile [phone]


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