Offer Update - Important Information In Relation To The Mix And Match Facility

NORTHFIELD, Ill., Jan. 22 /PRNewswire-FirstCall/ -- Kraft Foods Inc. ("Kraft") is providing further details about the recommended offer it announced on 19 January 2010 for Cadbury plc (the "Final Offer"), including, in particular, important information in relation to the Mix and Match Facility.  This information is being provided solely to assist Cadbury Securityholders and does not affect or amend the terms of the Final Offer in any way.

UPDATE ON THE MIX AND MATCH FACILITY

Under the terms of the Final Offer, the Mix and Match Facility allows for accepting Cadbury Securityholders to elect to vary the proportions in which they receive New Kraft Foods Shares and cash consideration, subject to other Cadbury Securityholders making off-setting elections.

The reference share price and exchange rate of the Mix and Match Facility were set on 1 December 2009, the last practicable date prior to the publication of Kraft's Original Offer Document.  For certain legal and technical reasons it was not possible to update this when the Final Offer was announced.  On 1 December 2009, the Kraft share price was $26.50 and the USD/GBP exchange rate was $1.6627 per GBP 1.00.  

Cadbury Securityholders who elect for additional cash under the Mix and Match Facility (providing that there are sufficient off-setting elections for shares) would receive 799 pence per Cadbury Share in cash and 3,195 pence per Cadbury ADS in cash (excluding in each case the Special Dividend of 10 pence per Cadbury Share).  

By contrast, the Final Offer's current value is 827 pence per Cadbury Share and 3,308 pence per Cadbury ADS (excluding in each case the Special Dividend of 10 pence per Cadbury Share)(1).  The Final Offer's value will change as the Kraft Foods share price and the USD/GBP exchange rate change.  

Therefore, Cadbury Securityholders should note that the Final Offer's value is presently higher than the value they may receive by electing for additional cash under the Mix and Match Facility.

Cadbury Securityholders who prefer cash to New Kraft Foods Shares may be able to realise greater value by accepting the basic terms of the Final Offer and then selling their New Kraft Foods Shares in the market than they would realise by electing for additional cash under the Mix and Match Facility.  This will depend upon the price of New Kraft Foods Shares and the exchange rate prevailing at the time of sale.  There can be no certainty regarding the total amount of cash which Cadbury Securityholders will receive through selling in the market and Kraft makes no recommendation as to the course of action which Cadbury Securityholders should take.