Nestlé S.A. reinforces bouillon sector in Mexico

Vevey, February 11, 2000

Mexican authorities have recently approved Nestlé's purchase of the bouillon business of Kraft Foods in Mexico.

The acquisition concerning tomato-base for soups (Consomate brand) and chicken bouillons (Rosa Blanca brand) will allow Nestlé to speed up progress in culinary products and consolidate its second position in the rapidly growing Mexican bouillon market, the sixth largest in the world.

Following close on the heels of the Totole take-over in China in the same sector, this purchase is in line with the Company's policy of strengthening its position in strategic business sectors by taking advantage of interesting acquisition opportunities, while continuing to drive development through internal growth.