Groupe Danone Successfully Launches a € 1.75 Bn Bond Issue

PARIS--(BUSINESS WIRE)--

Regulatory News:

Groupe Danone (Paris:BN) announces that it has successfully issued a Euro bond on Tuesday 22 April 2008.

This transaction has enabled Danone to refinance amounts due under the outstanding bridge loan facility set up in July 2007 to finance the acquisition of Numico and therefore to extend its debts maturity and diversify its sources of finance.

The issue consists of a 3-year tranche of € 750 mln (coupon of 5.25%) and a 7-year tranche of € 1,000 mln (coupon of 5.50%). The bonds will be listed on the Luxembourg Stock Exchange. The bonds were widely subscribed across a diversified investor base.

Pierre-André Terisse, Chief Financial Officer of Groupe Danone, commented: "We are very pleased with this bond issue. With 3 and 7 year maturities, this transaction strengthens the financing of the Numico acquisition, at conditions in line with our expectations. The very strong investor response clearly reflects the high confidence capital markets place in Danone."

Danone is rated A3 stable by Moody’s and A- stable by Standard & Poor’s. BNP Paribas, Calyon, JP Morgan, Sociéte Générale and The Royal Bank of Scotland acted as lead managers for this bond issue.

Groupe DANONE, the worldwide leader in healthy food.

Groupe DANONE is a Fortune 500 company and one of the most successful healthy food companies in the world. Its mission is to bring health through tasty, nutritious and affordable food and beverage products to as many people as possible. Fulfilling this mission is a major contributor to the Groupe’s continuous fast growth. Groupe DANONE with 150 plants and around 76 000 employees has a presence in all five continents and over 120 countries. In 2007, Groupe DANONE recorded 12.7 billion euros sales.

Groupe DANONE enjoys leading positions on healthy food on four businesses: fresh dairy products (n°1 worldwide), waters (n° 2 on the packaged water market), baby nutrition (n°2 worldwide) and medical nutrition. Listed on Euronext Paris, Groupe DANONE is also ranked among the main index of social responsibility: Dow Jones Sustainability Index Stoxx and World, ASPI Eurozone and Ethibel Sustainability index.