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PRESS RELEASE

Annual Results 2002

Ter Beke closes 2002 successfully
Proposal to increase dividend by 15% to € 1.15 net per share

1. Headlines 2002

• Key figures

-Gross turnover up from €173.3 to 185.6 million (+ 7.1%)
-Net current profit up from € 1.2 to 4.6 million (+ 272.1%)
-Net result up from € 1.3 to 3.5 million (+ 169.8%)
-Net current cash flow up from € 11.3 to 16.3 million (+ 44.2%)

• strong growth in ready pasta meals on all our European markets

• normalised processed meats sales

• stable raw material prices

• successful launch of new lasagne production facility at Wanze (Huy)

2. Consolidated key figures 2002

(1) Net result before goodwill amortization and before extraordinary results
(2) Including subordinated automatically convertible debenture (ACD) of € 25.6 million
(3) Financial debts, excluding subordinated automatically convertible debenture (ACD), after deduction of cash investments and liquid assets
 

Key figures per share

The statutory auditor has confirmed that he has completed his auditing work and that no significant corrections need to be made to the figures in the press release.
 

3. Net dividend up by 15% to € 1.15 per share

The Board of Directors will recommend to the General Meeting of Shareholders to distribute a cash divided over 2002 of € 1.15 per share. This represents an increase of 15% compared to prior year dividend distribution.
With this increase the Board of Directors wants to express its appreciation to the shareholders for their support to the company and also to express its confidence in the company's future development.

4. Notes to the accounts

1. Turnover

Gross turnover increased by 7% to over € 185 million.
This is mainly due to the continued strong growth in ready pasta meals, which accounted for more than 62% of volumes sold in 2002 compared with 57% in 2001.
In 2002, Ter Beke confirmed its European market leadership in fresh lasagne and ready pasta meals; the clear market leaderships in Benelux, Spain, Ireland and Switzerland were further strengthened.
The "Come a casa" consumer brand was developed in 2002; from the autumn onwards a new range of pasta meals was launched under this brand in five European countries. From mid-February 2003 "Come a casa" is being supported by a TV campaign in Belgium and Ireland.

	Fresh from the Mediterranean

Ter Beke also signed a number of major new contracts on the European retail market for lasagne, pasta dishes and paté.
Ter Beke's meat products' strategy is essentially focused on the Benelux market. On a stagnating market, Ter Beke achieved a notable positive development as a result of a new impetus in the commercial approach and range.
Raw materials prices remained stable during 2002 and thus contributed to a normalised situation.

2. Operating result
   
   The operating result is up by € 3.4 million as a result of a number of elements. The margin on the increase in turnover together with strict cost control accounted for more than € 2.5 million of this figure. There was also a € 1.7 million increase in depreciation, due to depreciation on new tangible fixed assets and on the new integrated computer system that was taken in service. The remaining difference is attributable to the loss of € 3 million that the group recorded in 2001 due to the depression on the raw materials market at that time (see our previous press releases of 17 September 2001 and 5 September 2002).

3. Financial results

The improvement in the financial result remained limited to € 0.5 million. This is due to the financing of a major investment programme amounting to € 11.8 million that Ter Beke implemented in 2002.

5. Investments
   
   Ter Beke continues to invest at a high rate: a total of € 11.8 million was invested in 2002.
   The most important project was the construction of a new fully automatic lasagne line at our Wanze (Huy) site. This extension doubles the production capacity for lasagne in consumer packs and is necessary to meet the growing demand on the various markets.
   The oldest part of the Waarschoot facility (salami production) is also being fully modernised. The new ripening and drying rooms equipped with the latest technology will ensure that Ter Beke remains at the forefront in its original core business.

6. Management members appointed to position of director
   
   Following its Corporate Governance policy, the Board of Directors proposes to the General Assembly of Shareholders to appoint the present members of the group management to executive directors. The following managers will be proposed to the director mandate: Wim De Cock, Operations; Joris Deconinck, HRM; Marc Hofman, CFO en Dirk Van de Walle, Marketing & Sales. Under the chairmanship of Luc De Bruyckere they will constitute the Executive Committee, conforming the new governance law.
   The Board of Directors will thus comprise three categories of directors: independent directors (5), non-executive representatives of the principal shareholders (2), and executive directors (5).
   
   The direct participation of all members of the Executive Committee to the working of the Board will result in greater personal responsibility of the executive directors and will facilitate direct exchange of views with the Board.
   These appointments are also a recognition and confirmation of the Board's confidence in the management team.
   
   New composition of the Board of Directors
   (subject to approval by the General Assembly of Shareholders)
   
   Executive directors:
   Luc De Bruyckere, chairman; Wim De Cock, Joris Deconinck, Marc Hofman and Dirk Van de Walle
   Non-executive directors:
   Daniël Coopman and Edith Coopman-De Baedts
   Independent directors:
   Guy Paquot (Bois Sauvage); Louis Tordeurs (SRIW); Johnny Thijs (De Post); Luc Vansteenkiste (Recticel, VBO) en Louis-H. Verbeke (Allen & Overy).

7. Outlook
   
   The successful 2002 confirms that Ter Beke is pursuing the right strategy which it will further continue.
   Raw material prices are not expected to fluctuate significantly during 2003.
   By virtue of the nature of our products (convenience products and an affordable price), Ter Beke is experiencing little impact from the economic uncertainty and from the threat of war in Iraq.
   If the present trends continue, we expect a further positive development of the results.
   
   Waarschoot, 27 February 2003
   
   Luc De Bruyckere
   Chairman Ter Beke

For further information please contact:
 

Media Luc De Bruyckere Chairman Telephone: +32 9 370 13 00 E-mail: luc.debruyckere@terbeke.be

Investor Relations Marc Hofman CFO Telephone: +32 9 370 13 16 E-mail: m.hofman@terbeke.be

Ter Beke in a nutshell

Ter Beke

• is a Belgian fresh food group with 5 production sites, 3 in Flanders (processed meats) and 2 in Wallonia (ready meals)
• achieved a gross turnover of € 185.6 million in 2002, a net profit of € 3.5million and a net cash flow of € 16.3 million.
• is a producer of ready pasta based meals and processed meats for the European market
• is market leader in chilled lasagne in Europe
• markets its products under the brand names Come a Casa, L'Ardennaise, Pronto, Vamos, Daniël Coopman and Les Nutons
• is customer-oriented and innovates at a fast rate its product range
• employs more than 900 people who apply their professional skills at the service of the customer and have every opportunity to develop their skills.