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PRESS RELEASE

Ter Beke carries out strategic acquisition in the Netherlands

Waarschoot, 1 February 2005

On 31 January 2005, Ter Beke acquired the Dutch LANGEVELD SLEEGERS, one of the market leaders in the field of slicing and pre-packaging processed meats. There are several reasons why this acquisition is of great strategic importance for the development of both Ter Beke´s Processed Meats Division and Langeveld Sleegers. The takeover makes an immediate positive contribution to the results of the Ter Beke group.

With retroactive effect as of 1 January 2005, Ter Beke is taking over 100% of the shares of LANGEVELD SLEEGERS ("Langeveld") from its founders, Gerrit and Frans Langeveld. The company, which arose in 1995 from the merger of Langeveld and Sleegers, is one of the most important companies in the Netherlands in the field of slicing and packaging processed meats for the self-service channel.
The slicing and pre-packaging activities are done at the plant in Milsbeek; the logistics centre is located in nearby Nijmegen.
Mr. Gerrit & Frans Langeveld have agreed to continuing the commercial and industrial-technical leadership of the company which, by joining the Ter Beke group, gains substantial additional power and can prepare itself for new development opportunities for its customers inside and outside of the Netherlands.
In 2004 Langeveld achieved a turnover of more than 30 million EUR with 100 employees.


Strategic importance

With this transaction, Ter Beke confirms its strategic choice for processed meats as one of its two core businesses (along with fresh Mediterranean ready meals). This acquisition is of great importance for the development of the Processed Meats Division within the Ter Beke group, for several reasons:

• The pre-packaged processed meats market in the self-service channel is growing vigorously in all countries. The Dutch market is one of the trendsetters in this development, which is illustrated by the fact that pre-packaged processed meats already represent 90% of the total processed meats market.
• This market segment is strongly driven by retail, which for its assortment in self-service increasingly calls upon specialised partners who offer a technically high-quality fresh concept coupled to a wide and innovative assortment. Langeveld offers a great diversity of packaging techniques to various major retailers on the Dutch market.

Through this acquisition of a service specialist without its own production, Ter Beke is strengthening its position in this growth segment of processed meats in a way which reduces its dependency on the evolution of raw material prices.


The Netherlands, the second domestic market

Since 1972 Ter Beke has been active on the Dutch market, which was its second domestic market for processed meats, and has been able to build up a solid reputation as a quality producer in the over-the-counter channel. Through the acquisition of Langeveld, Ter Beke is now also acquiring a Dutch identity and a critical scale in the field of pre-packaged processed meats in the self-service channel, which is important for further growth in the Dutch retail market.
In 2004 Ter Beke achieved a turnover of more than 35 million EUR in the Netherlands. With the acquisition of Langeveld, Ter Beke expects to be able to double that figure in 2005.

Products

As is well-known, Ter Beke has two core businesses: processed meats and fresh Mediterranean ready meals.
For processed meats, Ter Beke´s primary activity lies in the Benelux market. In these markets, pre-packaged processed meats in the self-service channel have acquired a dominant position compared to over-the-counter products. As a result, packaging concepts have grown steadily more important and freshness is the imperative criterion. With its various concepts, "Langeveld" stands at the forefront of packaging developments.
In combination with our existing pre-packaging department in Veurne, Ter Beke now offers a strong and complete line for the rapidly-growing demand in the self-service market in the Benelux.

Financial effect

From the very first year, the takeover of Langeveld, which is paid in cash, will make a positive contribution to the consolidated results of the Ter Beke group. Further financial information concerning this transaction will be given with the publication of the annual results 2004 of Ter Beke

For more information, please contact:
 

Media		Investors Relations
Luc De Bruyckere		Marc Hofman
Chairman		Managing Director
tel. +32 9 370 13 00		tel. +32 9 370 13 16
luc.debruyckere@terbeke.be		m.hofman@terbeke.be

Ter Beke in a nutshell

Ter Beke

• is a Belgian fresh food group with 7 establishments, including :
  5 in Belgium (3 for processed meats in Flanders and 2 for fresh Mediterranean ready meals in Wallonia);
  1 in the Netherlands (1 processed meats slicing centre with distribution centre).
  1 in France (fresh Mediterranean ready meals)
• achieves a gross turnover of over 200 million €
• is a producer of fine processed meats for the Benelux and fresh Mediterranean ready meals for the European market
• is market leader in fresh lasagna
• markets its products under the brand names Come a Casa, L'Ardennaise, Pronto, DiPasto, Daniël Coopman, Vamos and Les Nutons
• is customer-driven and develops and renews its product line on a regular basis
• has over 1,200 employees who place their professional skills at the service of the customer and who get every opportunity to develop their talents.