Heinz to Build New Frozen Food Facility

PITTSBURGH--(BUSINESS WIRE)--The H. J. Heinz Company (NYSE: HNZ) today announced it will build a new manufacturing facility in Florence, S.C., to support its high-growth frozen meals business in North America. Heinz will operate the new 225,000-square foot state-of-the-art factory that will create 350 new jobs.

“Our frozen meals business is growing rapidly and the new facility is a sign of our commitment to supporting and sustaining this growth,” said Dave Moran, EVP, President and CEO of Heinz North America. “The new facility will allow us to increase production of our Weight Watchers^® Smart Ones^® and Boston Market^® frozen entrées to meet the growing consumer demand for our high-quality frozen meals.”

“We are thrilled that Heinz chose Florence, S.C., as the location for its new frozen food factory, which will create 350 new jobs in the community over the next five years,” said Frank Willis, Mayor of Florence.

Heinz conducted a comprehensive search that included several locations in multiple states before selecting South Carolina. The site in Florence County was chosen for a number of reasons, including the positive business environment and the quality and quantity of available skilled labor in the area. The support Heinz received from city, state and government officials during the location evaluation process helped in determining the final site for the facility. The partnership developed between Heinz and the community during the planning process is one that will continue to grow long after the facility begins operations.

“As we work to compete in a global economy, South Carolina’s ability to attract world-class companies is increasingly important,” said Gov. Mark Sanford. “It’s a sign of our success that we can include Heinz among the companies that have chosen South Carolina as the site for a major manufacturing facility.”

Heinz selected a 49-acre site in the Pee Dee Touchstone Energy Commerce City, South Carolina’s premier business/industrial park. The park is a shovel-ready site that has been certified by the South Carolina Department of Commerce.

“As a state senator and resident of Florence County, I am delighted that Heinz has chosen to establish a manufacturing presence in our community,” said Senator Hugh K. Leatherman. “Heinz joins a growing list of blue chip companies that recognize the competitive business benefits the Pee Dee region provides. We look forward to a long and prosperous relationship for many years to come.”

The Florence, S.C., location also will allow Heinz to better serve its customers through the Company’s Southeast and Northeast distribution centers.

“This is a great day for Florence County,” stated Florence County Council Chairman, K.G. “Rusty” Smith. “Heinz is an outstanding company with an impeccable reputation that will provide quality jobs for the citizens of this community. The Heinz name is one of the most recognizable in the world, and we are proud and honored to have the Company as our newest corporate citizen.”

“This is yet another example of what can be accomplished when everyone is working toward a common goal,” said Dr. Charles Gould, chairman of Florence County Economic Development Partnership. “Without the support of our many partners and allies, as well as our private sector members, Florence County Progress, today’s announcement would not have been possible.”

Ground breaking for the facility is scheduled for summer 2008 and construction is scheduled to be completed in the fall of 2009. Heinz North America employs more than 10,000 employees.

SAFE HARBOR PROVISIONS FOR FORWARD-LOOKING STATEMENTS:

This press release and our other public pronouncements contain forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally identified by the words "will," "expects," "anticipates," "believes," "estimates" or similar expressions and include our expectations as to future revenue growth, earnings, capital expenditures and other spending, dividend policy, and planned credit rating, as well as anticipated reductions in spending. These forward-looking statements reflect management's view of future events and financial performance. These statements are subject to risks, uncertainties, assumptions and other important factors, many of which may be beyond Heinz's control, and could cause actual results to differ materially from those expressed or implied in these forward-looking statements. Factors that could cause actual results to differ from such statements include, but are not limited to:

• sales, earnings, and volume growth,
• general economic, political, and industry conditions, including those that could impact consumer spending,
• competitive conditions, which affect, among other things, customer preferences and the pricing of products, production, and energy costs,
• increases in the cost and restrictions on the availability of raw materials, including agricultural commodities and packaging materials, the ability to increase product prices in response, and the impact on profitability,
• the ability to identify and anticipate and respond through innovation to consumer trends,
• the need for product recalls,
• the ability to maintain favorable supplier relationships,
• currency valuations and interest rate fluctuations,
• changes in credit ratings, leverage, and economic conditions and the impact of these factors on the cost of borrowing and access to capital markets,
• our ability to effectuate our strategy, which includes our continued evaluation of potential acquisition opportunities, including strategic acquisitions, joint ventures, divestitures and other initiatives, including our ability to identify, finance and complete these initiatives, and our ability to realize anticipated benefits from them,
• the ability to successfully complete cost reduction programs and increase productivity,
• the ability to effectively integrate acquired businesses, new product and packaging innovations,
• product mix,
• the effectiveness of advertising, marketing, and promotional programs,
• supply chain efficiency,
• cash flow initiatives,
• risks inherent in litigation, including tax litigation,
• the ability to further penetrate and grow in international markets, economic or political instability in those markets, particularly in Venezuela, and the performance of business in hyperinflationary environments,
• changes in estimates in critical accounting judgments and changes in laws and regulations, including tax laws,
• the success of tax planning strategies,
• the possibility of increased pension expense and contributions and other people-related costs,
• the potential adverse impact of natural disasters, such as flooding and crop failures,
• the ability to implement new information systems and potential disruptions due to failures in information technology systems,
• with regard to dividends, dividends must be declared by the Board of Directors and will be subject to certain legal requirements being met at the time of declaration, as well as our Board’s view of our anticipated cash needs, and
• other factors described in "Risk Factors" and "Cautionary Statement Relevant to Forward-Looking Information" in the Company's Form 10-K for the fiscal year ended May 2, 2007.

The forward-looking statements are and will be based on management's then current views and assumptions regarding future events and speak only as of their dates. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by the securities laws.

About Heinz

H. J. Heinz Company, offering “Good Food Every Day” is one of the world’s leading marketers and producers of healthy and convenient foods specializing in ketchup, sauces, meals, soups, snacks and infant nutrition. Heinz provides superior quality, taste and nutrition for all eating occasions whether in the home, restaurants, the office or “on-the-go.” Heinz is a global family of leading branded products, including Heinz® Ketchup, sauces, soups, beans, pasta and infant foods (representing over one third of Heinz’s total sales), Ore-Ida® potato products, Weight Watchers® Smart Ones® frozen entrees, Boston Market® meals, T.G.I. Friday’s® frozen snacks, and Plasmon® infant nutrition. Heinz is famous for its iconic brands on five continents, showcased by Heinz® Ketchup, The World’s Favorite Ketchup®. More information on Heinz is available at www.heinz.com.