Proposed Acquisition

KERRY GROUP PLC
30 September 1999

   Kerry to add new technology line to its US and European
ingredients business through acquisition of Shade Foods Inc.
                    (US) and SFI Europe.

Kerry Group today announced that it has signed an agreement
to purchase the SFI Group of speciality food ingredients
businesses comprising Shade Foods Inc. in the USA and
Speciality Food Ingredients (SFI) in Europe.  The proposed
acquisition, subject to anti-trust approval and due
diligence, is scheduled for completion by year end.

Leaders in food ingredients particulates technology, Shade
Foods and SFI provide flavoured particulates, high protein
inclusions and speciality chocolate and compound coatings to
leading manufacturers of ready to eat cereals,
confectionery, dairy, ice cream, bakery and nutraceutical
products.  The business employing 400 people operates from
three plants in the USA, located in Kansas City, San Jose
California and Hudson, Iowa, and one plant in Europe based
in Tilbury, the Netherlands.

The total consideration for the acquisition is US$80m
payable in cash on completion.  Kerry Group will finance the
acquisition through lines of credit arranged with Group
Banks.

Demand for particulates ingredients is growing by 10% to 12%
per annum in several dynamic areas of the global food
industry including breakfast items, high nutrition foods,
baked goods, confectionery and premium ice cream / dairy
categories.  In the year to 31 December 1998 the business 
being acquired achieved sales of US$90.7m  and earnings 
before interest tax depreciation and amortisation (EBITDA) 
of US$9.125m.

SFI and Shade Foods have established strong partnerships
with major multinational food processors, collaborating on
innovative product development and adding value to branded
prepared foods and foodservice products through the
provision of enhanced flavour, colour and texture by means
of unrivalled particulates technology.

Commenting on the proposed acquisition, Denis Brosnan Kerry
Group Managing Director said 'this flavoured particulates
business complements our existing technologies and customer
base.  Kerry has already established a foothold in this
sector in particular in the US and the UK. The synergies
from the combined businesses plus the planned development of
new products and processes provides a strong platform for
growth throughout the Group's global ingredients markets.'

Kerry Group is a major international food ingredients and
consumer foods corporation with current annualised sales in
excess of IR£1.9 billion (US$2.5 billion).  In ingredients
markets Kerry's core technologies and global resources in
cheese and dairy flavourings, flavours and seasonings,
coating systems, speciality lipid ingredients, functional
proteins, fruit preparations and bakery ingredients provide
innovative, practical product solutions to food
manufacturers and foodservice companies in some eighty
countries.

For further information please contact:

Frank Hayes,
Director of Corporate Affairs,
Kerry Group plc,
Prince's Street, Tralee, Co. Kerry, Ireland.
Telephone:     [phone]        Fax: [phone]