Statement - Sugar Regime Fund

Greencore Group PLC
12 July 2006







GREENCORE GROUP PLC


CONTACT: PATRICK COVENEY

                                                      TELEPHONE: [phone]
                                                            FAX: [phone]



  Greencore Group plc response to the Government's Announcement regarding The
                        Sugar Regime Restructuring Fund



The Board of Greencore Group plc notes the Irish Government's deliberation on
the proposed allocation of funds from the Restructuring Fund set in place by the
European Union as part of Sugar Regime reform. This Fund is financed by European
sugar refiners who are remaining in production to finance and compensate
refiners, such as Greencore, forced to leave the industry as a result of the
Regime reform. On the basis set out in EU Regulation 320/2006, Greencore is
entitled to receive 90% of the Restructuring Fund.



The objective of the EU is compensation, not enrichment.  Beet growers in
Ireland will receive €118.5 million through the single farm payment mechanism,
the purpose of which is to compensate them fully for the inability to grow beet
because of support price reductions. In addition, growers will receive €44
million through diversification aid.



These payments are exclusive of any money from the Restructuring Fund. The
purpose of the Restructuring Fund is to compensate for losses directly suffered
as a consequence of the closure of the Irish Sugar production facility in
Mallow. We believe that beet growers and contractors are not entitled to any
more than 10% of the Restructuring Fund. This is consistent with the recent
decree issued by the Italian Government which allocated 4% of the Restructuring
Fund to growers and 6% to contractors. A similar allocation has been made in
Sweden.



The Board fundamentally disagrees with the basis of the Government's proposal,
believes that it is flawed and is contrary to the purpose for which the
restructuring aid was established by the EU. The Board will protect the
legitimate interests of its shareholders and will act to preserve the company's
entitlement. The Board will consider the options open to it and will decide on
and pursue a definitive course of action in due course.



C.M. BERGIN
GROUP COMPANY SECRETARY


GREENCORE GROUP PLC
ST. STEPHEN'S GREEN HOUSE
EARLSFORT TERRACE
DUBLIN 2.


                                                                  12TH JULY 2006




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