Dairy Farmers, Processors and Manufacturers to Benefit from Supply Chain Efficiencies

NEW YORK, July 26, 2000 — Today, Dairy.com announced the first business-to-business online vertical exchange focused specifically on serving the entire U.S. dairy industry. Dairy.com is an independent, neutral company whose services and tools will be open to all dairy industry participants from farmers to processors and manufacturers. The company’s mission is to use the power of the Internet to help the industry create a better way of doing business. Dairy.com will provide an online platform for the entire dairy industry to more efficiently conduct the same kinds of transactions that occur today.

Dairy.com was founded by a broad consortium of eight leading dairy industry organizations representing all segments of the industry – farmer owned cooperatives, milk, ice cream and yogurt processors and cheese manufacturers. Dairy.com’s founding partners include: Dairy Farmers of America, The Dannon Company, Dreyer’s Grand Ice Cream, Kraft Foods, Land O’Lakes, Leprino Foods, Schreiber Foods and Suiza Foods.

Dairy.com is currently planning five key functional platforms for the site: a dairy commodity exchange, dairy farmer services, information tools, supply chain management tools and industry-focused community and content. Dairy.com is scheduled to launch its first release in the first quarter of 2001 with live trading of select commodities including milk and cream, logistics estimating tools and industry-focused content. Future releases will include spot and long-term trading of other dairy commodities including butter, cheese and powders as well as logistic services and farm management tools.

“The dairy industry is ideally positioned to benefit from an online exchange,” said Jack Gherty, president and chief executive officer of Land O’Lakes, one of the founding partners. “It is a large industry with unique information and logistics demands driven by the variety and perishability of its products, the diversity of its producers, market fragmentation and a very complex regulatory environment. The key to Dairy.com is that it creates new linkages, addressing producer, processor and marketer needs from a central access point.”

Dairy.com will be the first site to provide comprehensive services and tools to dairy farmers as well as processors and manufacturers.

“Many dairy farmers are relying on Internet-based technology to get more done in less time. Dairy.com will serve as a resource for America’s dairy farmers by providing them with information to manage their businesses more effectively,” explained Gary Hanman, chief executive officer of Dairy Farmers of America (DFA), a founding partner of Dairy.com. “The site will also provide more powerful farm management tools enabling dairy farmers to benchmark and optimize their businesses, and the central online location will connect producers with a wide range of suppliers.”

Dairy.com’s online dairy commodity exchange will enable users to have better visibility of trading partners and market prices. In addition, Dairy.com will help reduce operating costs and inventories by improving coordination between buyers and sellers.

“This exchange will be completely neutral and open to everyone in the industry. By connecting the entire dairy supply chain, everyone will benefit,” said Mary Kay Haben, president of the Kraft cheese division and executive vice president of Kraft Foods, a founding partner of Dairy.com. “With Dairy.com, participants can streamline the buying or selling process for dairy commodities and use information tools to make better operating decisions.”

Two major industry associations support Dairy.com and the benefits it will bring to the dairy industry.

“The formation of Dairy.com represents a great effort, bringing the industry together around a common initiative,” stated E. Linwood Tipton, president and chief executive officer of the International Dairy Foods Association (IDFA). “Dairy.com will be open to all companies, small and large, and allow everyone to benefit from the comprehensive services the site will offer.”

“A business-to-business web site like Dairy.com is the next evolutionary step in the ongoing effort to improve the marketing efficiency of the U.S. dairy industry, from grass to glass,” said Jerry Kozak, chief executive officer of the National Milk Producers Federation (NMPF). “The knowledge offered by Dairy.com to producers, cooperatives and processors will be a powerful asset for everyone who wants to make use of it.”

The founding partners have contributed significant financial and other resources to Dairy.com to ensure its success. Additionally, each founding partner will have a representative on Dairy.com’s board of directors. The board expects to designate a chief executive officer in the near future. Prior to the board’s selection, Gregg L. Engles, chairman of the board and chief executive officer of Suiza Foods, a founding partner of Dairy.com, will act as interim chief executive officer and representatives of the founding partners will provide additional key interim functions and services.

“We are excited about the opportunities that Dairy.com provides. This transforming technology will enable users to create greater value in their core businesses,” explained Engles. “While we’ve identified a broad range of services, Dairy.com will be positioned to add new services and deliver benefits in ways that we have only just begun to envision.”

Dairy.com is the first business-to-business online vertical exchange focused specifically on serving the entire U.S. dairy industry. Dairy.com was founded by a broad consortium of eight leading dairy industry organizations representing all segments of the industry – farmer owned cooperatives, milk, ice cream and yogurt processors and cheese manufacturers. Dairy.com is an independent, neutral company whose services and tools will be open to all dairy industry participants. Five key functional platforms are planned for the site: a dairy commodity exchange, dairy farmer services, information tools, supply chain management tools and industry-focused community and content. For more information, visit Dairy.com’s Web site at www.dairy.com.

CONTACT INFORMATION:

Sheila Gregory

Edelman Public Relations Worldwide

312-233-1226

sheila.gregory@edelman.com

Wendy Macuga-Gallwas

Edelman Public Relations Worldwide

312-240-2677

wendy.gallwas@edelman.com