Sara Lee Corporation to Take a Non-Cash Impairment Charge Related Primarily to Its...

Sara Lee Corporation to Take a Non-Cash Impairment Charge Related Primarily to Its North American Foodservice Bakery and Spanish Bakery Businesses

DOWNERS GROVE, Ill.--(Business Wire)--
Sara Lee Corp. (NYSE: SLE) today announced it will incur a
non-cash impairment charge of between $865 million and $975 million,
or $(1.17) to $(1.32) per share, in the fiscal fourth quarter ended
June 28, 2008, primarily associated with its North American
Foodservice bakery and Spanish bakery business units.

Sara Lee performs its annual goodwill impairment testing during
the second quarter of each fiscal year. While there were no
impairments at that time, the company disclosed that the goodwill of
these two business units might be impaired in the future.

During the second half of fiscal 2008, these operations did not
show the level of improvement management expected. Based on this, plus
adverse economic conditions and escalating wheat costs for the Spanish
bakery and North American Foodservice bakery operations, the company
determined that it was required to take an estimated aggregate
goodwill impairment charge for the businesses of between $800 million
and $900 million in the fourth quarter. All of the goodwill balances
relate to the company's 2001 acquisition of The Earthgrains Company.
Sara Lee will not recognize any tax benefit.

"Today's announcement is consistent with our second and third
quarter disclosures, in which we identified our
North American Foodservice bakery and Spanish bakery businesses as at
risk for future goodwill impairment," said Brenda C. Barnes, chairman
and chief executive officer, Sara Lee Corp. "While this goodwill
impairment charge is required, we retain our longer-term positive view
of these businesses. The bakery units represent an important part of
our strategy and we remain committed to continuing to grow these
businesses."

Sara Lee also announced a non-cash pre tax write-down of
$65 million to $75 million related to certain other assets in
North America.

The company anticipates providing updated results in conjunction
with its fourth quarter and full-year financial results announcement
on August 7, 2008.

About Sara Lee Corporation

Each and every day, Sara Lee (NYSE: SLE) delights millions of
consumers and customers around the world. The company has one of the
world's best-loved and leading portfolios with its innovative and
trusted food, beverage, household and body care brands, including
Ambi Pur, Ball Park, Douwe Egberts, Hillshire Farm, Jimmy Dean, Kiwi,
Sanex, Sara Lee, and Senseo. Collectively, these brands generate more
than $12 billion in annual net sales covering approximately
200 countries. The Sara Lee community consists of 52,000 employees
worldwide. Please visit www.saralee.com for the latest news and
in-depth information about Sara Lee and its brands.

Sara Lee Corp.
Media:
Mike Cummins, +1.630.598.8412
or
Analysts:
Aaron Hoffman, +1.630.598.8739

Copyright Business Wire 2008