Disposal of Ice Cream Business

Associated British Foods PLC
3 April 2000


ABF Sells Ice Cream Business

Associated British Foods, the international food, ingredients
and retail group, announced today (Monday 3rd April) that it
has agreed to sell the ice cream business of its subsidiary,
Allied Foods Limited to a subsidiary of Richmond Foods plc,
Richmond Frozen Confectionery Limited for £18.8 million. In
the year ended 18th September 1999, ABF's ice cream business
had sales of £48.4 million and operating profits of £0.3
million.

The sale, which is subject to the approval of Richmond Foods
plc's shareholders and confirmation from the Secretary of
State for Trade and Industry that it will not be referred to
the Competition Commission, will see Allied's four plants in
Kent and the West Country transferring to Richmond Frozen
Confectionery Limited along with a workforce of around 500.

Competition in the ice cream market, especially in the own
label sector in which Allied has had a strong presence, is
fierce, and despite investment in facilities and new product
development ABF no longer sees the sector as core to its
activities.

ABF Chief Executive, Peter Jackson said, 'We signalled at the
time of our results last year that we would be focusing our
activities in markets where we are well positioned to maximise
shareholder value and this action is a part of that process.'



For more information, please call:

Peter Jackson, Chief Executive
Tel:  [phone]

John Bason, Finance Director
Tel: [phone]