Dole Food Company, Inc. Announces Significantly Improved Results for 2008

WESTLAKE VILLAGE, Calif.--(Business Wire)--
Dole Food Company, Inc. today announced 2008 EBITDA of $409 million, a $100
million or 32% increase over 2007.

David A. DeLorenzo, Dole`s President and CEO stated: "Dole had an outstanding
year in 2008. We made great progress in increasing earnings, cutting costs,
selling non-performing and idle assets, and reducing debt. EBITDA in 2008 of
$409 million was an increase of 32% or a $100 million improvement over 2007. In
addition, cash proceeds from asset sales in 2008 and the first quarter of 2009
will total over $300 million. In 2008, Dole`s global workforce was reduced
approximately 13% from 87,000 to 76,000 associates, and net debt decreased from
$2.3 billion to $2.1 billion. We are pleased with the excellent results achieved
in 2008. We are very optimistic as we look forward in 2009 to continue our
success in achieving improved earnings and further reductions in costs and
debt."

Dole also announced the following results for fiscal year 2008, which ended on
January 3, 2009.

Selected Financial Resultsfrom Continuing Operations (excludes discontinued operations for flowers, citrus and pistachios)

2008 2007
(in millions)
Revenues, net $ 7,620 $ 6,821
EBITDA 409 309

Reconciliation of operating income to EBITDA:

2008 2007
(in millions)
Operating income $ 275 $ 149
Other income (expense), net (14 ) 2
Interest income 6 8
Minority interests, net of income taxes (2 ) (3 )
Equity in earnings of unconsolidated subsidiaries 6 2
Depreciation and amortization 138 151
EBITDA $ 409 $ 309

EBITDA is presented because management believes it is frequently used by
securities analysts, investors and others in the evaluation of companies, and
because certain debt covenants on Dole`s outstanding debt are tied to EBITDA.
EBITDA is calculated by adding other income (expense), net, interest income,
minority interests, net of income taxes, and equity in earnings of
unconsolidated subsidiaries to operating income. EBITDA is not defined under
accounting principles generally accepted in the United States of America
("GAAP") and should not be considered in isolation or as a substitute for net
income and other consolidated income statement data prepared in accordance with
GAAP or as a measure of Dole`s profitability. Additionally, Dole`s computation
of EBITDA may not be comparable to other similarly titled measures computed by
other companies, because not all companies calculate EBITDA in the same fashion.
A reconciliation of operating income to EBITDA is provided in the table above.

Revenues

For fiscal 2008, revenues increased 12% to $7.6 billion from $6.8 billion in
2007. Revenues increased in all of our operating segments, mainly due to higher
pricing. Revenue also increased due to favorable foreign currency exchange
movements and the benefit of a 53-week year in 2008 compared to a 52-week year
in 2007.

EBITDA

For fiscal 2008, EBITDA increased 32% to $409 million from $309 million in 2007.
EBITDA was higher in the fresh fruit and fresh vegetables operating segments and
lower in the packaged foods segment. On a consolidated basis, EBITDA increased
primarily due to higher sales worldwide and overall favorable foreign currency
exchange movements. These benefits were partially offset by higher production
and shipping costs. EBITDA was also impacted by an unrealized loss of $50
million from Dole`s cross currency swap, which was partially offset by net
foreign currency exchange gains of $21 million on Dole`s British pound sterling
denominated vessel capital lease obligation. Excluding these items, as well as
net unrealized foreign currency hedge gains of $6 million and unrealized bunker
fuel hedge losses of $4 million, 2008 EBITDA would have been $436 million,
compared to $332 million in 2007.

See the paragraph above, following the table reconciling operating income to
EBITDA, for important information concerning the use of EBITDA, which is a
non-GAAP measure.

Cash and Debt

2008 2007
Cash and ABL Availability: (in millions)
Cash and cash equivalents $ 91 $ 97
ABL Revolver availability 172 134
Total Debt:
ABL Revolver borrowings $ 151 $ 176
Term loans 835 960
Sr. Notes and Debentures1 1,100 1,105
Other debt 144 170
Total Debt $ 2,230 $ 2,411

1Includes $345 million 8.625% notes due May 1, 2009

Interest Expense

Interest expense in 2008 was $174 million compared to $195 million in 2007.
Interest expense decreased primarily as a result of lower borrowing rates on the
Company`s debt facilities and a reduction in borrowings.

Results of Reporting Segments(excludes discontinued operations for flowers, citrus and pistachios)

2008 2007
Revenues from external customers (in millions)
Fresh fruit $ 5,401 $ 4,737
Fresh vegetables 1,087 1,060
Packaged foods 1,131 1,023
Corporate 1 1
$ 7,620 $ 6,821

2008 2007
EBITDA (in millions)
Fresh fruit $ 396 $ 267
Fresh vegetables 21 (3 )
Packaged foods 94 112
Total operating segments 511 376
Corporate:
Unrealized loss on cross currency swap (50 ) (11 )
Operating and other expenses, net (52 ) (56 )
Total Corporate (102 ) (67 )
Total EBITDA $ 409 $ 309

Update on Asset Sale Transactions: On January 29, 2009, Dole Food Company, Inc.
announced progress on its asset sale transactions. First, Dole has closed the
first phase of the previously announced sale of its flowers division. With the
closing of the first phase, Dole has now completed the sale of its flowers
business and retains only certain real estate of the former flowers division to
be sold in the subsequent phases of the transaction. Second, Dole has closed on
the sale of certain banana properties in Latin America. Third, Dole has signed a
definitive purchase and sale agreement to sell certain property in North
America. When the North American property sale closes, towards the end of the
first quarter of 2009, Dole will have received net cash proceeds of
approximately $84 million from these three transactions. When all phases of the
transactions are complete, net proceeds to Dole will be approximately $130
million. The cash proceeds will be used to pay down Dole`s debt under its senior
secured credit facilities and/or to reinvest in the business. Pending
reinvestment, cash proceeds will be used to pay down Dole`s revolving credit
facility.

Dole, with 2008 net revenues of $7.6 billion, is the world`s largest producer
and marketer of high-quality fresh fruit and fresh vegetables, and is the
leading producer of organic bananas. Dole markets a growing line of packaged and
frozen fruit and is a produce industry leader in nutrition education and
research.

This release contains "forward-looking statements," within the meaning of the
Private Securities Litigation Reform Act of 1995 that involve a number of risks
and uncertainties. Forward looking statements, which are based on management's
current expectations, are generally identifiable by the use of terms such as
"may," "will," "expects," "believes," "intends," "anticipates" and similar
expressions. The potential risks and uncertainties that could cause actual
results to differ materially from those expressed or implied herein include
weather-related phenomena; market responses to industry volume pressures;
product and raw materials supplies and pricing; energy supply and pricing;
changes in interest and currency exchange rates; economic crises and security
risks in developing countries; international conflict; and quotas, tariffs and
other governmental actions. Further information on the factors that could affect
Dole's financial results is included in its SEC filings, including its Annual
Report on Form 10-K.

Dole Food Company, Inc.
Joseph Tesoriero, 818-879-6900
Beth Potillo, 818-879-6733

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