PRESS RELEASE

Ter Beke, the leading producer of chilled pasta meals and processed meats, will end the second half-year of 2001 in profit. Although definitive figures are not yet available, the company can already confirm that the net operating loss for the first half-year (€ 2 million) will be more than compensated for. The result for the full year will be in line with expectations.
As announced previously, in the first year half Ter Beke was faced with steep rises in its raw material prices. These prices stabilised in the second half and the company was able to restore its margins. Cost-saving measures initiated in the first half of the year produced their full effect in the second half. Together with good sales of both processed meats and ready meals from summer holidays onwards, the above resulted in a return to profit over the second half-year.
Final figures for the full year will be announced in mid-March. Meanwhile, the company already observes that ready meals now represent some 58% of total volume sold. This is the result of continued sales growth of ready meals in international markets. This successful performance is steadily reducing Ter Beke’s exposure to crises in the meat sector.
Based on the trend over the second half of 2001 and trading over the first weeks of the new year, the company looks forward to 2002 with confidence.

For further information, please contact:

Luc De Bruyckere
telephone: +32 9 370 13 00
e-mail: luc.debruyckere@terbeke.be

Marc Hofman
telephone: +32 9 370 13 16
e-mail: m.hofman@terbeke.be