SUMMARY

Kraft Foods is pleased to announce the terms of an Offer for Cadbury

Kraft Foods will offer to acquire the whole of the issued and to be issued share capital of Cadbury as follows:

for each Cadbury Share300 pence in cashand0.2589 New Kraft Foods Sharesfor each Cadbury ADS1,200 pence in cashand1.0356 New Kraft Foods Shares

The terms of Kraft Foods' Offer reflect all publicly available information on Cadbury, including its recent interim management statement

The Offer represents a substantial premium to the unaffected share price of Cadbury

The Offer represents an attractive multiple of Cadbury's underlying EBITDA

Kraft Foods' current trading and prospects are strong

Kraft Foods' estimated cost synergies have been carefully evaluated and are in line with precedent transactions, including Cadbury's acquisition of Adams

Cadbury Shareholders will share in the benefits of a combination, including synergies, through the share element of the consideration

No other potential offeror has publicly declared its interest in acquiring Cadbury

Kraft Foods remains committed to maintaining a financially disciplined approach

Commenting on the Offer, Irene Rosenfeld, Chairman and CEO of Kraft Foods, said:

"We remain convinced of the strategic merits for both companies of combining Kraft Foods and Cadbury. We believe that our proposal offers the best immediate and long-term value for Cadbury's shareholders and for the company itself compared with any other option currently available, including Cadbury remaining independent."

This summary should be read in conjunction with the full text of the following announcement.

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