Acquisition

Kerry Group PLC
10 May 2004



                                  Press Announcement



10 May 2004                     For immediate release



Kerry Group announces a further major expansion of its global flavours business





Kerry, the global ingredients, flavours and consumer foods group, today
announced the acquisition of four flavour businesses, significantly expanding
the Group's Mastertaste division's flavour development and global customer
service capabilities. The acquisition of Manheimer Inc. based in New Jersey
(USA), Flavurence based in Los Angeles (USA), Laboratorios Krauss based in
Mexico and Fructamine based in Italy, represents a further major step in
broadening the Group's flavour technical base and in progressing Mastertaste's
regional development and business expansion programme. Total consideration for
the four acquired businesses amounted to €170m. In the financial year 2003, the
acquired businesses had annual revenues of €110m and earnings before interest,
taxation, depreciation and amortisation (EBITDA) of €15m. The acquisition of
Manheimer also includes the business of Manheimer Fragrances, which represents
Kerry's first business interest in the international fragrance market.



Manheimer, is a leading formulator and supplier of natural flavours for the
beverage, confectionery, meat and soup industries. The business has
state-of-the-art research and development facilities in Teterboro, New Jersey
and a modern manufacturing facility in Clark, New Jersey. Through well
established international customer relationships the business has a strong
heritage in beverage and savoury flavours. Its primary strengths include natural
extracts, botanicals and citrus flavours, complementing Mastertaste's Florida
based SunPure flavour business.

Manheimer Fragrances, develops and markets innovative fragrances for application
in home-environmental, personal care, household and industrial products. The
business, which has developed proprietary fragrance technologies from its New
Jersey based facilities, has an extensive fragrance library and a leading
reputation for provision of highly functional fragrance solutions, particularly
in the fast-growing home-environmental fragrance sector.



Flavurence, based in Los Angeles is a major flavour supplier to food and
beverage producers in the West Coast of the USA. Specialising in natural fruit
flavours, particularly tropical and exotic, the acquired business serves
beverage, dairy, bakery and confectionery markets - complementing the Group's
recently acquired US based flavour businesses.



Laboratorios Krauss, with flavour development facilities based in Pachuca,
Mexico and headquartered in Mexico City, has a strong market presence through
sweet flavours particularly in the bakery sector. The acquired business
establishes an important regional platform for Mastertaste's growth and
development in Mexico, Latin America and the Caribbean.



Fructamine, based in Mozzo, Bergamo in Northern Italy, is a leading Italian
producer of naturally extracted flavours. Through its savoury, sweet and
beverage flavours, and unique flavour encapsulation technology, Fructamine has a
well established position across European savoury, bakery and soft drinks
markets. The business also has Representative Offices in France, Germany, Spain
and the UK. Together with Mastertaste's existing Turin based flavour business,
and Mastertaste (UK) based in Cam, this acquisition significantly advances the
division's position in European markets.



Commenting on the acquisitions, Hugh Friel, Kerry Group Chief Executive said: '
Demand for natural, more varied and complex flavours is growing in line with
evolving consumer trends and increasing consumption of convenience foods,
prepared meal solutions, health and nutraceutical food and beverages. Manheimer
Fragrances represents the Group's first entry into the specialist fragrance
market, where rapidly changing consumer dynamics are also providing strong
growth opportunities in home-environmental, air care and personal care products
'.



                                      Ends







For further information please contact:



Frank Hayes,                       Tel:      [phone]
Director of Corporate Affairs,     Fax:      [phone]
Kerry Group plc.                   Email:    [e-mail]




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