March 29, 2006

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Cargill Welcomes EC Approval of the Acquisition of Degussa’s Food Ingredients Operations

Mechelen, Belgium—Cargill welcomes the decision of the European Commission (EC) to approve its acquisition of Degussa’s food ingredients operations. As this is the final stage of regulatory approval, Cargill and Degussa can now proceed with the necessary financial and legal transfers in order to complete the acquisition in the next few days.

Degussa’s food ingredients operations are comprised of texturant and flavouring capabilities and will significantly strengthen Cargill’s portfolio of texturant ingredients and systems, emulsifiers, flavouring and health promoting ingredients. It will accelerate the company’s focus on creating value and growth for its customers.

“Today’s decision by the EC significantly progresses Cargill’s growth in the food ingredients arena and is consistent with our strategy of becoming the recognised global leader in providing food and beverage companies with innovative solutions that help them succeed,” says Warren Staley, Cargill chairman and chief executive officer. “The Degussa food ingredients operations greatly complement our existing food ingredients business and create new opportunities for us to better support our customers in the quest to produce even tastier, healthier and more convenient foods.”

The intended acquisition was first announced on 9 September 2005 and was given the green light by the US authorities on 17 November. On 14 December the EC opened an in-depth (Phase two) investigation into the acquisition, the conclusion of which the EC announced today, unconditionally approving the transaction. This means that the acquisition can now be completed.

Degussa’s food ingredients operations have 2,050 employees in total with 1,500 in the texturant area and 550 in the flavour business.

The addition of Degussa food ingredients’ skills, expertise and facilities for the production of texturants will confirm Cargill as a major global company with a full product range of starches, hydrocolloids, soya proteins, emulsifiers, dairy and meat cultures, and a significant position in ingredients systems and blends and health promoting ingredients. Degussa’s texturant business has 33 locations -19 of which are texturant production sites. Eleven of the production sites are in Europe, four in the Americas, two in Asia and two in North Africa.

The acquisition will also build upon Cargill’s existing flavouring and related businesses to establish a strong position internationally, serving industries such as beverages, confectionery, dairy, savoury and pharmaceutical products. It strengthens the Cargill businesses in Europe and North America and provides a platform for further growth into the fast-developing regional markets in Eastern Europe, Asia and Latin America.

“This is good news for the employees of Degussa’s food ingredients operations as they will be joining a dynamic food ingredient company in which their expertise will be key to its future growth. We look forward to welcoming the highly skilled workforce into Cargill. Their expertise will complement our existing Cargill staff and strengthen our offering to customers,” concludes Staley.