Kellogg Acquires Assets of Zhenghang Food Company, Leading Biscuit Manufacturer in China



    BATTLECREEK, Mich., June 30 /CNW/ -- Kellogg Company today announced that
one of its majority-owned subsidiaries has acquired substantially all of the
assets of Zhenghang Food Company Ltd. ("Navigable Foods"), a manufacturer of
cookies and crackers in the north and northeastern regions of China.
    Terms of the transaction were not disclosed. Navigable Foods' 2007 net
sales were approximately $50 million.
    "Geographic expansion in high-growth markets like China will help Kellogg
Company continue to deliver sustainable growth," said David Mackay, president
and chief executive officer, Kellogg Company. "Navigable Foods' biscuit
products are a strong, strategic fit within the Kellogg portfolio and will
further build our presence in China."
    Founded in 1993, Navigable Foods is one of the major biscuit
manufacturers in China, providing consumers with a large variety of cookie and
cracker products under the ZhengHang brand.
    Navigable Foods' approximately 1,800 employees, including the company's
management team, will join a majority-owned subsidiary of Kellogg Company. The
acquisition includes two manufacturing facilities located in Yishui county,
Shandong province, and Fushun city, Liaoning province, as well as the
company's sales and distribution network. Kellogg Company is the first Fortune
500, multinational company to invest in Yishui county, where Navigable Foods'
main plant is located. The business will continue to be headquartered in the
city of Qingdao, Shandong province, and will report into Kellogg Company's
Asia Pacific business unit.
    Kellogg will leverage its brand-building and innovation expertise, its
understanding of the biscuit category, as well as Navigable Foods' existing
manufacturing, sales and distribution infrastructure, to drive continued
strong growth of this business.
    Recently, Kellogg's Corporate Citizenship Fund (KCCF), the charitable arm
of the company, made a $250,000 donation to the American Red Cross, designated
to support the earthquake relief efforts of its sister organization, the Red
Cross Society of China (RCSC).
    With 2007 sales of nearly $12 billion, Kellogg Company (NYSE:   K) is the
world's leading producer of cereal and a leading producer of convenience
foods, including cookies, crackers, toaster pastries, cereal bars, frozen
waffles and meat alternatives. The company's brands include Kellogg's(R),
Keebler(R), Pop-Tarts(R), Eggo(R), Cheez-It(R), Club(R), Nutri-Grain(R), Rice
Krispies(R),  Special K(R), All-Bran(R), Mini-Wheats(R), Morningstar Farms(R),
Famous Amos(R), Ready Crust(R) and Kashi(R).  Kellogg products are
manufactured in 18 countries and marketed in more than 180 countries around
the world.  For more information, visit the Kellogg Company website at
www.kelloggcompany.com .




For further information:

For further information: North America Media: Kris Charles, 
+1-269-961-3799, Europe Media: Paul Fitzsimmons, 011-353-1-883-0604, Asia
Media:  Lydia Shen, 86 21 2405 0182, Analyst: Joel Wittenberg,
+1-269-961-2078, all of  Kellogg Company Web Site:
http://www.kelloggcompany.com

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