DANONE Sells Frucor to Suntory

* Reuters is not responsible for the content in this press release.

Thu Oct 23, 2008 12:15pm EDT

PARIS--(Business Wire)--
Regulatory News:

   Danone Asia Pte Ltd, a subsidiary of Groupe DANONE S.A.
(Paris:BN), has signed an agreement with Suntory Limited for the sale
of its subsidiary Frucor, based in New Zealand and Australia, for an
amount of over EUR 600 million.

   This transaction stems from the recent refocus on natural mineral
water and spring water based beverages and will allow DANONE to focus
on its core business growth opportunities. Related proceeds will be
allocated to debt repayment.

   "Frucor has played an instrumental role in Danone's growth and
innovation strategy over the past six years. We are convinced that
this new step will allow Frucor to ensure its long term development
within the beverages market" stated Emmanuel Faber, Co Chief Executive
Officer of DANONE.

   The transaction is subject to the approval by the New Zealand
authorities.

   About Frucor

   With estimated sales of EUR 210 million, Frucor is the market
leader in energy drinks throughout Australasia and the second-largest
non-alcoholic drinks company in New Zealand. Frucor employs over 600
people across New Zealand and Australia and its brand portfolio
includes fruit juices, fruit drinks, energy drinks, waters and soft
drinks.

   About Suntory

   Suntory, founded in 1899, is the leading food and beverage company
in Japan, with an extensive product portfolio consisting of Whisky,
Beer, Wine, Healthy foods and Soft drink, with a turnover of
US$15billion. Suntory has been significantly increasing its global
presence through strategic alliance and acquisition in beverage
industry in US, Europe and Asia Pacific.

   About DANONE

   Groupe DANONE is a Fortune 500 company and one of the most
successful healthy food companies in the world. Its mission is to
bring health through tasty, nutritious and affordable food and
beverage products to as many people as possible. Fulfilling this
mission is a major contributor to the Groupe's continuous fast growth.
Groupe DANONE with 150 plants and around 76 000 employees has a
presence in all five continents and over 120 countries. In 2007,
Groupe DANONE recorded 12.7 billion euros sales.

   Groupe DANONE enjoys leading positions on healthy food on four
businesses: fresh dairy products (n°1 worldwide), waters (n° 2 on the
packaged water market), baby nutrition (n°2 worldwide) and medical
nutrition.

   Listed on Euronext Paris, Groupe DANONE is also ranked among the
main index of social responsibility: Dow Jones Sustainability Index
Stoxx and World, ASPI Eurozone and Ethibel Sustainability index.

GROUPE DANONE
Corporate Communication : + 33 1 44 35 20 75
Investor Relations : + 33 1 44 35 20 76

Copyright Business Wire 2008
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