Kellogg Company Acquires the United Bakers Group, a Leading Russian Biscuit, Ready-to-Eat Cereal Manufacturer

    BATTLE CREEK, Mich., Jan. 17 /CNW/ -- Kellogg Company (NYSE:   K), the
world's leading producer of cereal and a leading producer of biscuits and
convenience foods, today announced that it has acquired The United Bakers
Group, one of Russia's largest cracker, biscuit and breakfast cereal
producers. United Bakers' products, marketed primarily under the Yantar and
Lyubyatovo brands, are a strong strategic fit with the Kellogg portfolio. The
brands hold number one or number two positions in their respective categories.
    Terms of the transaction were not disclosed.  With United Bakers' 2007
net sales of approximately $100 million, the transaction is not expected to
have a material impact on Kellogg Company's 2008 operating profit.
    "Consistent with our strategy, we continue to pursue the right kind of
opportunities to grow our business," said David Mackay, president and chief
executive officer, Kellogg Company. "The acquisition of United Bakers in
Russia is an exciting strategic development for Kellogg. United Bakers is a
leading producer of high quality cereals and biscuits, and its existing
operations will help us establish a considerable presence in this large and
fast-growing market."
    United Bakers' nearly 4,000 employees will join Kellogg Company,
including the company's management team. The acquisition includes United
Bakers' six manufacturing facilities located throughout Russia as well as its
large sales and distribution network. The business will continue to be
headquartered in Voronezh, Russia, and will report into Kellogg Company's
European business unit.
    Kellogg will leverage its brand building and innovation expertise, its
understanding of the cereal and biscuit categories, as well as United Bakers'
existing manufacturing, sales and distribution infrastructure, to drive
continued strong growth of this business.
    With 2006 sales of almost $11 billion, Kellogg Company is the world's
leading producer of cereal and a leading producer of convenience foods,
including biscuits, crackers, toaster pastries, cereal bars, fruit snacks,
frozen waffles and veggie foods.  The company's brands include Kellogg's,
Keebler, Pop-Tarts, Eggo, Cheez-It, Nutri-Grain, Special K, Rice Krispies,
Murray, Austin, Morningstar Farms, Famous Amos, Carr's, Plantation, Ready
Crust and Kashi.  Kellogg products are manufactured in 17 countries and
marketed in more than 180 countries around the world.  For more information,
visit Kellogg's web site at

For further information:

For further information: North America Media Contact: Kris Charles, 
+1-269-961-3799, Europe Media Contact: Paul Fitzsimmons, 353 1 8830 604,
Russia  Media Contact: Michael Maslov, 7 495 981 0609 ext. 110, Analyst
Contact: Joel  Wittenberg, +1-269-961-2078 Web Site:

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