New Facility

Glanbia PLC 8 June 2000 GLANBIA OPENS NEW CHEESE PLANT IN USA (8 June 2000) One of the largest cheese production plants in the world was officially opened today in Gooding, Idaho, USA by Irish food group, Glanbia plc. The facility, recently extended at a cost of $33 million, has an annual output of 180 million pounds (85,000 tonnes) of American cheese plus over 88 million pounds (40,000 tonnes) of specialised dairy ingredients. It ranks as one of the top facilities of its kind both in the USA and globally - cheese output from the single plant equates to the entire hard cheese production in the Republic of Ireland. The extension at Gooding increases Glanbia's total annual USA cheese production by 30% to approx. 264 million pounds (120,000 tonnes) and ingredients output by over 20% to approx. 119 million pounds (54,000 tonnes). The investment was made in response to continued growth in cheese consumption in the USA and, in particular, increasing demand for ingredient cheeses. Following a small acquisition in Idaho in 1990, Glanbia has invested over $100 million to become the largest dairy processor in the State. It is one of the top producers of American-style cheese in the USA, supplying major food processors serving food service and retail markets. Glanbia has also developed a broad range of dairy-based ingredients for the nutrition and food processing sectors. It is America's second largest exporter of lactose to Japan and number two in the world in production of advanced technology whey proteins for the growing sports and medical nutrition sectors. More recently Glanbia also entered the milk minerals sector with a pure milk calcium product, XtraCal(, for fortified foods and dietary supplements. Glanbia also operates two other facilities in Idaho - at Twin Falls and Richfield. A separate office in Monroe, Wisconsin manages all ingredient sales and marketing in the USA. The turnover of US operations now exceeds $400 million annually, 400 staff are employed, milk throughput exceeds 2.33 billion pounds per annum (233 million gallons) while 3.3 billion pounds (333 million gallons) of whey are also processed annually. Speaking at the Official Opening, Glanbia plc Chairman John Duggan, said that the development of Gooding was a critical component of the Group's future strategy. 'Glanbia's development is being focused on the international cheese and nutrition sectors and our USA business is an important platform for future growth,' he said. 'Today, Glanbia ranks among the world's leading cheese companies with particular strengths in ingredient cheeses in the USA and EU. We have achieved important scale of operations in Idaho, a strong technical base and good customer relationships. The USA business is also the main driver of our nutrition strategy, where the market for nutritional products is robust.' Mr Dave Thomas, President of Glanbia Foods, Inc., said that Glanbia has already achieved sales commitments for the entire additional output from Gooding. 'A consolidating customer base is a common feature of the food industry globally and our ongoing goal is to be strategically relevant to our key customers. This is being achieved through high levels of customer responsiveness, meeting specific product requirements and market competitiveness. Innovations in nutrition products have also strengthened our ingredients operation, providing an important complementary business dimension within our US portfolio. We see continued growth opportunities in both parts of our business.' The official opening was attended by local and state dignitaries, representatives of the Board and management of Glanbia, customers, milk patrons and employees. For further information, please contact: Michael Patten, Director of Communications, Glanbia plc Tel: Int'l + 353-87-2859665 (Worldphone) or Office: Int'l +353-56-72200 Jeff Williams, Executive Vice President, Glanbia Foods Inc, USA Tel: 208-733-7555, Ext. 14
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