NESTLÉ S.A.

Disclosure of Shareholdings

In accordance with Art. 20 para.1 SESTA, Nestlé S.A., avenue Nestlé 55, CH-1800 Vevey and Zugerstrasse 8, CH-6330 Cham, announces that the Nestlé Group exceeded the threshold percentage of 3% of voting rights through the acquisition on July 2, 2008 of own shares within its Share Buy-Back Programme. The Nestlé Group held on such date a total of 115'763'720 own registered shares corresponding to 3.023 % of the voting rights. The Nestlé Group companies holding the own shares include Nestlé S.A., Vevey and Cham, and Food Products (Holdings) S.A., Calle 69 O No 74D, Urbanización La Loma, Panama.

In addition, Nestlé S.A. has issued (i) 25'051'770 Management Stock Options (Grant Date / Exercise Price: 01.03.2002 / CHF 36.735; 01.02.2003 / CHF 27.855; 01.10.2003 / CHF 30.855; 01.02.2004 / CHF 32.91; 01.10.2004 / CHF 28.94; 01.02.2005 / CHF 30.92; 01.02.2006 / CHF 37.95; 01.02.2007 / CHF 44.50; 01.02.2008 / CHF 47.38; Term: each option has a term of 7 years; Vesting: upon 3 years from the grant date; Exercise Period: 4 years from vesting date; Ratio: 1:1) outstanding, which entitle to the acquisition of 25'051'770 registered shares of Nestlé S.A.; and (ii) 9'860'370 Restricted Stock Units (Grant Date: 01.10.2005; 01.02.2006; 01.10.2006; 01.02.2007; 01.10.2007; 01.02.2008; Vesting: upon 3 years from the grant date, delivery of Nestlé S.A. registered shares or the equivalent amount in cash; Ratio: 1:1) outstanding, which entitle to the acquisition of 9'860'370 registered shares of Nestlé S.A. All registered shares of Nestlé S.A. underlying the financial instruments mentioned in (i) and (ii) are included in the holding of own shares of the Nestlé Group indicated above. Should all under (i) and (ii) mentioned financial instruments be exercised, the holding in own shares of the Nestlé Group would be reduced by 0.912 % of the voting rights. 

Contacts for this announcement: 

Media - Robin Tickle Tel.: +41 (0)21 924 22 00 

Investors - Roddy Child-Villiers Tel.: +41 (0)21 924 36 22

Vevey and Cham, July 4, 2008    Nestlé S.A.