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PRESS RELEASE

2006 half-year results

Ter Beke realises strong turnover growth and confirms prospects for 2006
Merger of Ter Beke processed meats division and Pluma is going as planned

Waarschoot, 8 September 2006.

1. Headlines for the 1st half of 2006

• Group key figures::
  - Total turnover up by 29.2% from 115.5 million EUR to 149.2 million EUR;
  - Result after income taxes up by 10.8% to 2.3 million EUR, compared to 2.1 million EUR in 2005;
  - Net cash flow up by 23% from 7,4 million EUR to 9,2 million EUR;
  - Result negatively influenced by rising raw material prices and considerably higher energy prices.

• Processed Meats Division:
  - Main event: merger of the division with the Pluma group;
  - Sharp increase in the turnover, mainly achieved by the merger of the division with the Pluma Group
  - The integration of the processed meats activities of Pluma and Ter Beke is taking place exactly as planned and within the established timing.

• Ready Meals Division:
  - Strong increase in the turnover;
  - Come a Casa: the investments in marketing & sales result in an increased market share.
   

2 . Consolidated key figures for the 1st half of 2006

2.1. Profit and loss account

2.2 Key figures per share (on 6-month basis)

3. Notes to the accounts

3.1. Merger of Ter Beke Processed Meats division with Pluma

On 18 May 2006, the merger of Ter Beke's processed meats division with the Pluma group, agreed at the end of March, was approved by the extraordinary general shareholders' meeting.

Through this merger, the combination of Ter Beke-Pluma becomes the market leader in processed meats in Belgium and the third largest producer of processed meats in the Benelux.

The Pluma group was included in the consolidation as of 1 April 2006.

The integration of the processed meats activities of Pluma and Ter Beke is going according to plan and within the envisaged timing.

The impact of the Pluma Group on the result of the first half year is limited due to a number of financial and organisational factors relating to the transaction.

Ter Beke continues to have a sound equity ratio (32.0% on the balance sheet total compared with 31.0% on 30 June 2005).

3.2 Turnover

Processed meats - Ter Beke´s 29.2% increase in turnover from 115.5 million EUR to 149.2 million EUR is mainly the result of the abovementioned merger of the Processed Meats Division of Ter Beke with the Pluma Group. Even with the same consolidation circle, however, a modest turnover increase is recorded.

In line with the trend of recent years, we find in the meat sector a further growth in the sale of pre-packaged processed meats combined with further pressure on the sale of over-the-counter products via the traditional channel.

Given this trend, Ter Beke continues to focus strongly on its slicing and packaging activities, paying special attention to product development and innovation. For example, in the spring Ter Beke launched a line of processed meats coming from free-range animals under the name "Plainair".

Ready Meals - The turnover increase in the Ready Meals Division fully corresponds to expectations. In almost all of the sales channels and in virtually all countries where Ter Beke is active with its ready meals, higher sales are being achieved than in the same period of 2005.

Through the expansion of the Come a Casa "Naturalmente" product line in Belgium and the successful introduction in Belgium and France of the line of "Come a casa Equilibre" products, Ter Beke succeeded in further increasing its market share in the segment of fresh Mediterranean ready meals.

For the second time in a row, the entire Come a casa line earned in France the fiercely coveted quality distinction "Saveur de l´Année", thanks to the extensive efforts on innovation and continuous improvement of recipes.

The major retailers maintain pressure on the prices, and thus on the margins of the producers/suppliers. This explains in part why the turnover increase does not translate into a proportional increase in results.
 
3.3 Results of operating activities

The evolution in the results of operating activities is, along with the margin pressure discussed above, largely attributable to the investment in marketing and sales, and more particularly in the Come a casa brand, above all in the French market. As mentioned earlier, Ter Beke decided to apply the result from the turnover increase entirely for the development of products and brand.

Other factors which influenced the result are the rising raw material prices, the sharply increased energy prices and a number of extra costs resulting from investments in the technical reliability of the production facility in Wanze (for automation and technical support)

The results of the Pluma Group of companies were only included in the consolidation as of 1 April 2006. These results meet the expectations established when the transaction was carried out.

3.4 Net Finance costs

The finance costs rise by around 0.2 million euros is primarily a result of the acquisition of the Pluma Group. The cash component of the transaction price was entirely financed with borrowed funds. In addition, the Pluma group finance costs were included in the consolidation as of 1 April 2006.

3.5 Investments

Ter Beke continues to invest unabated in its own growth, and during the first half of the year invested around 7 Million EUR in its production companies.

For example, major investments were made in new slicing and packaging lines, in the imposed replacement of freon based cooling installations, the improvements of the installations in the Waarschoot site and the further automation of the ready meals production lines in Wanze and Marche en Famenne.

The full investment programme which Ter Beke will implement this year amounts to around 16.5 Million EUR. This is more than anticipated earlier because the turnover increase in the Ready Meals Division made accelerated investments in additional capacity necessary.

3.6 Income taxes

The costs with regard to taxes amount to 1.1 million EUR (31.1 %) as at 30 June 2006, compared with 1.2 million EUR (36.2%) as at 30 June 2005. This change is primarily the result of the decreased tax rates in the Netherlands and the effect of the notional interest deduction.

3.7 IFRS

In conformity with the CESR (Committee of European Securities Regulators) Recommendation 03-323e of December 2003 and the memorandum of the BFIC (FMI/2004-1) of March 2004, it was decided to draw up the interim report for the first half of 2006 in conformity with the national reporting principles and in conformity with the accounting and valuation principles of IFRS, without however satisfying the presentation requirements of "IAS-34 - Interim financial reporting".

4. Prospects

During the second half of the year Ter Beke will continue to invest heavily in its market position, as well as in extending its capacity and further divisioning its organisation. As announced earlier, for this it will use the additional financial room which was created by it internal sales growth and by the acquisition of the Pluma Group.

Unless the market environment deteriorates, and taking into account a number of one time costs, such as the costs of the merger of the processed meats division with Pluma, the group expects the result for the full year 2006 to match the 2005 result.

5. Financial services

Financial services relating to the Ter Beke share are provided by the following financial institutions: Fortis Bank, ING Bank, KBC, Bank Degroof and Petercam NV.

6. Report of the Statutory Auditor on the half-year information on 30 June 2006

To the Board of Directors

We have performed a limited review of the attached consolidated balance sheet and profit and loss account (jointly the "interim financial information") of TER BEKE NV ("the company") and its subsidiaries (together "the Group") for the six-month period ending on 30 June 2006.

The Board of Directors is responsible for the preparation and accuracy of this interim financial information. Our responsibility is to issue a judgement on this interim financial information on the basis of our limited review.

The interim financial information is prepared in conformity with the accounting and valuation principles of the International Financial Reporting Standards as accepted within the European Union.

Our limited review of the interim financial information was performed in accordance with the audit recommendations applicable in Belgium concerning the limited review, as issued by the Institute of Company Auditors. A limited review consists primarily in the discussion of the financial information with the management and analysis of the interim financial information and underlying financial data. A limited review is less in-depth than a full audit of the consolidated annual accounts in accordance with the generally-accepted auditing standards on the consolidated annual accounts issued by the Institute of Company Auditors. Accordingly, we do not express an audit opinion.

Based on our limited review, no elements or facts have come to our attention which cause us to believe that the interim financial information for the six-month period ending on 30 June 2006 has not been prepared in accordance with the legal and regulatory requirements and the accounting and valuation principles of the International Financial Reporting Standards as accepted within the European Union.


7 September 2006
The Statutory Auditor
DELOITTE Bedrijfsrevisoren BV o.v.v.e. CVBA
Represented by Dirk Van Vlaenderen

For more information, please contact:

Media Luc De Bruyckere Executive Chairman Telephone: +32 (0)9 370 13 17 E-mail: luc.debruyckere@terbeke.be

Investor Relations René Stevens CFO Telephone: +32 (0)9 370 13 45 E-mail: rene.stevens@terbeke.be

 

TER BEKE IN BRIEF


Ter Beke (Euronext Brussels: TERB) is an innovative Belgian fresh food group which markets its assortment in 10 European countries. The group has 2 core businesses: processed meats and fresh ready meals, possesses 9 industrial establishments in Belgium, the Netherlands and France and counts over 1,600 employees.

a. Ter Beke - Pluma Processed Meats Division

• producer of processed meats for the Benelux and pâtés for Germany and the United Kingdom
• 5 production sites in Belgium (Wommelgem, Waarschoot, Marche-en-Famenne, Herstal and Ruiselede) and 3 centres for slicing and packaging of processed meats, including 2 in Belgium (Wommelgem and Veurne) and 1 in the Netherlands (Milsbeek)
• innovative in the segment of pre-packaged processed meats
• distribution brands and own brand names L´Ardennaise, Daniël Coopman, Pluma and La Rochette
• around 900 employees

b. Fresh Ready Meals Division

• producer of fresh ready meals for the European market
• market leader in fresh lasagne in Europe
• 3 production sites, including 2 in Belgium (Wanze and Marche-en-Famenne) and 1 in France (Alby-sur-Chéran)
• brand names Come a Casa, Pronto and Vamos along with distribution brands
• around 650 employees