Manros is the largest dairy producer in Omsk Region and one of the largest dairy enterprises in Siberia and the Far East, its annual production capacity stands at around 65,000 tons. Manros is made up of four plants, whose combined processing capacity is 720 tons a day. Manros produces milk, sour cream, yogurts, cottage cheese, kefir and other dairy products under “Na zdorovie”, “Molochnaya Dolina” and “Vkusnika” brands.
Commentingonthedeal, TonyMaher, ChiefExecutiveOfficerofWimm-Bill-Dann, said: “The acquisition of such a strong regional player as the Omsk dairy plant Manros is fully in line with our strategic goal of building a sizeable and efficient health-oriented food company. The Manros acquisition further strengthens Wimm-Bill-Dann’s market position in the fast-growing Siberian region, where continued economic growth is translating into ever growing demand across our proposition of healthy products aimed at the entire family. Manros represents one of the largest dairy plants in Siberia and will significantly enhance our ability to meet our customers’ needs for trusted Wimm-Bill-Dann products, whilst adding successful local brands to our portfolio. We continue to study opportunities across the entire CIS for carefully selected acquisitions to strengthen our core businesses for the long-term.”
With the Manros acquisition Wimm-Bill-Dann increases its market share in Siberia and the Far East to 22% (according to AC Nielsen data, 2005), thus, re-enforcing the company’s leadership in the region. Omsk Region is one of the richest territories of West Siberia in terms of raw milk, it produces around one third of all the milk produced in West Siberia.
For Wimm-Bill-Dann Manros will become the seventh dairy plant, located in the promising regions of Siberia and the Far East, which today constitute 9% of the company’s dairy sales.
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For further enquiries contact:
Anton SaraikinPress Secretary
Wimm-Bill-Dann Foods OJSC13 Solyanka St., Bld. 2,Moscow, 109028 RussiaPhone: +7 495 105 5805 (ext.1699)Fax:+7 495 1055800e-mail: saraikinAS@wbd.ru
Some of the information contained in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of Wimm-Bill-Dann Foods OJSC, as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995.We wish to caution you that these statements are only predictions and that actual events or results may differ materially.We do not intend to update these statements to conform them to actual results.We refer you to the documents Wimm-Bill-Dann Foods OJSC files from time to time with the U.S. Securities and Exchange Commission, specifically, the Company's most recent Form 20-F.These documents contain and identify important factors, including those contained in the section captioned “Risk Factors” in our Form 20-F, that could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, potential fluctuations in quarterly results, and risks associated with our competitive environment, acquisition strategy, ability to develop new products or maintain market share, brand and company image, operating in Russia, volatility of stock price, financial risk management, and future growth.
ABOUT WIMM-BILL-DANN OJSC
Wimm-Bill-Dann Foods OJSC is a leading manufacturer of dairy products and beverages in Russia. The company was founded in 1992.The Company currently owns 32 manufacturing facilities in Russia and the Commonwealth of Independent States (CIS), as well as trade affiliates in 26 cities in Russia and the CIS.
Wimm-Bill-Dann has a diversified branded portfolio with over 1,000 types of dairy products and over 150 types of juice, nectars and still drinks. The company currently employs over 17,000 people.
On May 18, 2006, Standard & Poor’s Governance Services announced the upgrade of WBD’s Corporate Governance Score (CGS) from 7 to 7+ (from 7.3 and 7.7 accordingly on the Russian national scale), which makes the Company’s score the highest rating in Russia. The increase in the score reflects the effective work of the Board of Directors and, in particular, the real influence of independent directors in the decision-making process and the adherence of the controlling shareholders to the highest standards of corporate governance.