Statement re discussions

Associated British Foods PLC
15 March 2006


                          Associated British Foods plc


               Statement on discussions with Illovo Sugar Limited


For immediate release                      15 March 2006


Associated British Foods plc, the international food, ingredients and retail
group, notes today the announcement by Illovo Sugar Limited as published on the
Securities Exchange News Service of the JSE Limited and confirms that it is in
discussions about a potential transaction that could involve it acquiring a 51%
interest in Illovo Sugar Limited. There is no certainty that these discussions
will lead to an offer. Further announcements will be made as appropriate.


For further information please contact:


Associated British Foods plc                  Tel: [phone]

John Bason, Finance Director


Citigate Dewe Rogerson                        Tel: [phone]

Jonathan Clare / Chris Barrie / Sara Batchelor


Notes to Editors:


Associated British Foods plc

Associated British Foods plc ('ABF') is a diversified international food,
ingredients and retail group with global sales of £5.6 billion and over 42,000
employees.  It is listed on the London Stock Exchange with a market
capitalisation of £6.8 billion.  It operates in 41 countries with significant
businesses outside Europe in Australia, China and the US.  It has had a
successful history of international partnerships with minority shareholders.
The group operates in four business categories: Primary Food & Agriculture,
Grocery, Ingredients and Retail.


ABF aims to achieve sustainable leadership positions in markets and businesses
that offer potential for profitable growth.  It strives to achieve this through
a combination of organic growth and, while maintaining a strict financial
discipline, the acquisition of complementary businesses.  The group has a strong
track record of successfully completing value adding acquisitions such as AB
Mauri, its leading international yeast and bakery ingredients business, Mazola,
Ovaltine and Littlewoods stores.  At the last financial year end ABF had no net
debt on its consolidated balance sheet.


British Sugar

British Sugar is a wholly owned, substantial and core business within ABF.  It
has sugar operations in the UK, Poland and China which process around 2 million
tonnes of sugar annually.


British Sugar is the lowest cost beet sugar processor in the EU and processed
1.34 million tonnes of sugar during the last UK campaign.  It has market
leadership in the UK and established sales positions elsewhere in the EU and its
two leading retail brands in the UK are Silver Spoon and Billington's.  It has a
proven ability to create value through improvement in agricultural yields,
operational efficiencies, co-product development and marketing and innovation.
It has world class production facilities and technical expertise and Wissington
in Norfolk is the largest and most efficient beet sugar factory in the world.
The UK's first bioethanol plant is currently being constructed at Wissington.



British Sugar entered into its first joint venture in the Polish market in 1989.
It has since developed its presence considerably.  200,000 tonnes of sugar are
processed annually and its two facilities include Glinojeck, Poland's highest
capacity and lowest cost beet factory.  It has used its expertise to build
Poland's premier retail sugar brand, become a leader in animal feeds
co-products, improve agricultural yields and reduce processing cost through
investment and process innovation.



British Sugar entered the Chinese market in 1995 through a joint venture and now
has four cane sugar factories with a processing capacity of 550,000 tonnes of
sugar annually.  It has dramatically improved agricultural productivity, factory
extraction and sugar yields and has developed a direct industrial customer base
with its supply of European standard sugar.


Illovo

Illovo is listed on the JSE Securities Exchange South Africa with a market
capitalisation of £510 million (R5.5 billion). Its sales in 2004/05 were £480
million (R5.1 billion) and it has a total asset base of £375 million (R4.0
billion).


It is the largest sugar producer in Africa and one of the world's leading low
cost sugar producers.  The company grows and processes sugar cane in South
Africa, as well as Malawi, Mozambique, Swaziland, Tanzania and Zambia and
produced 1.9 million tonnes of sugar in 2004/05.  It has identified development
programmes to expand this capacity substantially.


Illovo currently exports to the EU under the ACP protocol, principally through
Swaziland. With the recently announced changes to the EU sugar regime, Malawi,
Mozambique, Tanzania and Zambia are classified as LDC countries and will receive
unrestricted access for sugar exports to the EU from 2009.




                      This information is provided by RNS
            The company news service from the London Stock Exchange