Kellogg Company Acquires the United Bakers Group, a Leading Russian Biscuit, Ready-to-Eat Cereal Manufacturer

Battle Creek, Michigan (ots/PRNewswire) -

Kellogg Company (NYSE: K), the world's leading producer of cereal
and a leading producer of biscuits and convenience foods, today
announced that it has acquired The United Bakers Group, one of
Russia's largest cracker, biscuit and breakfast cereal producers.
United Bakers' products, marketed primarily under the Yantar and
Lyubyatovo brands, are a strong strategic fit with the Kellogg
portfolio. The brands hold number one or number two positions in
their respective categories.

Terms of the transaction were not disclosed. With United Bakers'
2007 net sales of approximately US$100 million, the transaction is
not expected to have a material impact on Kellogg Company's 2008
operating profit.

"Consistent with our strategy, we continue to pursue the right
kind of opportunities to grow our business," said David Mackay,
president and chief executive officer, Kellogg Company. "The
acquisition of United Bakers in Russia is an exciting strategic
development for Kellogg. United Bakers is a leading producer of high
quality cereals and biscuits, and its existing operations will help
us establish a considerable presence in this large and fast-growing
market."

United Bakers' nearly 4,000 employees will join Kellogg Company,
including the company's management team. The acquisition includes
United Bakers' six manufacturing facilities located throughout Russia
as well as its large sales and distribution network. The business
will continue to be headquartered in Voronezh, Russia, and will
report into Kellogg Company's European business unit.

Kellogg will leverage its brand building and innovation expertise,
its understanding of the cereal and biscuit categories, as well as
United Bakers' existing manufacturing, sales and distribution
infrastructure, to drive continued strong growth of this business.

With 2006 sales of almost US$11 billion, Kellogg Company is the
world's leading producer of cereal and a leading producer of
convenience foods, including biscuits, crackers, toaster pastries,
cereal bars, fruit snacks, frozen waffles and veggie foods. The
company's brands include Kellogg's, Keebler, Pop-Tarts, Eggo,
Cheez-It, Nutri-Grain, Special K, Rice Krispies, Murray, Austin,
Morningstar Farms, Famous Amos, Carr's, Plantation, Ready Crust and
Kashi. Kellogg products are manufactured in 17 countries and marketed
in more than 180 countries around the world. For more information,
visit Kellogg's web site at www.kelloggcompany.com.

Web site: http://www.kelloggcompany.com

ots Originaltext: Kellogg Company
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