Monday, 30 June 2003

Dean Foods Company to Acquire Horizon Organic Holding Corporation

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Monday, 30 June 2003

Dean Foods to Purchase #1 Organic Milk, Dairy and Juice Brand in the United States and #1 Organic Milk Brand in the United Kingdom
Dean Foods Will Expand Its Portfolio of Branded Products
Dean Foods Will Expand Its Portfolio of Branded Products Dean Foods’ Processing and Distribution Capabilities Will Accelerate Future Growth and Extension of Horizon Organic Brands

DALLAS and BOULDER, Colo., Jun 30, 2003 /PRNewswire-FirstCall via COMTEX/ — Dean Foods
Company (NYSE: DF) and Horizon Organic Holding Corporation (Nasdaq: HCOW)
announced today the signing of a definitive agreement by which Dean Foods will
acquire the 87% equity interest in Horizon Organic it does not currently own.
Dean Foods will purchase the remaining 87% interest in Horizon Organic for a
cash price of approximately $216 million, or $24 per share and will assume
approximately $40 million in debt. The transaction, which was approved by the
board of directors of both companies, is expected to close during the fourth
quarter of 2003. The transaction is subject to approval by Horizon Organic’s
shareholders and expiration of the waiting period under the Hart-Scott Rodino
Antitrust Improvements Act.

Horizon Organic markets the leading brand of certified organic foods in
the United States and the leading brand of certified organic milk in both the
United States and the United Kingdom. In 2002, Horizon Organic reported
revenues of approximately $187 million, and in April 2003, the company
announced that it had reached a milestone of $200 million in annual sales.
Horizon Organic’s product line in the United States includes organic milk, a
full line of organic dairy products and organic juices, pudding, fruit jels
and eggs. In the U.K., the company markets and sells organic milk, yogurt and
butter under the Rachel’s Organic brand.

“We are extremely pleased to add the number one organic milk and dairy
brand to our portfolio of branded products,” said Gregg Engles, Chairman and
Chief Executive Officer of Dean Foods. “Our acquisition of Horizon Organic
evidences our commitment to the growth of healthy, better-for-you products.
We are also very excited to have the opportunity to join forces with the
Horizon Organic management team and continue to build upon their passion and
commitment to organic foods.”

“We are very excited about the opportunities the partnership with Dean
Foods presents for Horizon Organic, its shareholders, producers, processors,
customers and consumers. With Dean Foods’ substantial processing,
distribution and marketing resources, we look forward to accelerating our
growth and strengthening the leadership position of the Horizon Organic
brands,” said Chuck Marcy, President and Chief Executive Officer of Horizon
Organic. “We are especially excited to leverage Dean Foods’ unique national
refrigerated distribution system, to expand the distribution of Horizon
Organic branded milk, dairy and juice products. This will allow us to further
support and encourage greater organic milk and organic crop production. We
are confident that this combination is the best way to ensure the future
growth and extension of both the Horizon Organic and Rachel’s Organic brands.”

“Offering customers both the Horizon Organic and Silk brands within our
organic product portfolio makes us the clear leader in the organic category,”
continued Engles. “Horizon Organic has experienced tremendous growth, and its
organic leadership position in both the United States and the U.K. represents
a very compelling strategic fit for us.”

Horizon Organic will continue to be headquartered in Boulder, Colorado and
Chuck Marcy will report to Gregg Engles. Dean Foods expects the transaction
to be neutral to slightly accretive to earnings in the first full year after
closing. In 2004, the financial results of the business will be reported
within the Dean Branded Products Group.

About Horizon Organic

Horizon Organic Holding Corporation markets the leading brand of certified
organic foods in the U.S. and the leading certified brand of organic milk in
both the U.S. and the U.K. In the U.S. its products include organic milk, a
full-line of organic dairy products, organic eggs and juices. In the U.K.,
the Company markets organic yogurt, milk and butter under the Rachel’s Organic
brand. For more information, please visit the Company’s web site at
www.horizonorganic.com .

About Dean Foods

Dean Foods Company is one of the nation’s leading food and beverage
companies. The company produces a full line of company-branded and private
label dairy products such as milk and milk-based beverages, ice cream, coffee
creamers, half and half, whipping cream, whipped toppings, sour cream, cottage
cheese, yogurt, dips, dressings and soy milk. The company is also a leading
supplier of pickles and other specialty food products, juice, juice drinks and
water. The company operates over 120 plants in 36 U.S. states and Spain, and
employs approximately 28,000 people.

Note on Forward Looking Statements: Some of the statements in this press
release are “forward-looking” and are made pursuant to the safe harbor
provision of the Securities Litigation Reform Act of 1995. These
“forward-looking” statements include statements relating generally to the Dean
Foods’ ability to profit from the Horizon Organic acquisition and to grow the
Horizon Organic(R) and Rachel’s Organic(R) brands as expected. These
statements involve risks and uncertainties that may cause results to differ
materially from the statements set forth in this press release. Dean Foods’
ability to profit from its branding initiatives will depend on a number of
factors, including primarily customer acceptance of Horizon Organic’s
products. The forward-looking statements in this press release speak only as
of the date of this release. Dean Foods expressly disclaims any obligation or
undertaking to release publicly any updates or revisions to such statements to
reflect any change in its expectations with regard thereto or any changes in
the events, conditions or circumstances on which any such statement is based.

SOURCE Dean Foods Company; Horizon Organic Holding Corporation

Barry Fromberg, EVP and Chief Financial Officer,
+1-214-303-3443, or P.I. Aquino, Assistant Treasurer, +1-214-303-3437, both of
Dean Foods Company; or Tom Briggs, SVP and Chief Financial Officer, ext. 230,
or Jennifer J. Matuschek, Director of Investor Relations, ext. 178, both of
Horizon Organic Holding Corporation, +1-303-530-2711

http://www.horizonorganic.com

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