2005 press releases

The Group has today issued a separate trading update.

Northern Foods plc today releases audited restated financial information for the 52 weeks ended 2 April 2005 (2004/05) and unaudited restated financial information for the 26 weeks ended 2 October 2004 under International Financial Reporting Standards (IFRS).

Northern Foods previously prepared the 2004/05 consolidated accounts under UK Generally Accepted Accounting Principles (UK GAAP). These accounts were published in June 2005. Accordingly, IFRS results will be published in the Interim Report for the 26 weeks ended 1 October 2005, and announced in the Interim Results scheduled for release on 15 November 2005.

Principal adjustments from UK GAAP to IFRS are:

• Recognition of increased pensions expense and related deficit
• Convertible bond split into equity and liability components
• Proposed dividends no longer accrued
• Deferred tax no longer discounted
• Goodwill no longer amortised or recycled

The key impacts on the Group’s previously reported results for 2004/5 are as follows:

• Net cash flow unchanged as a result of the transition
• 2004/5 full year1 profit before tax2 £62.2m (UK GAAP £80.2m)
• 2004/5 full year1 continuing operating margin2 6.1% (UK GAAP 7.2%)
• 2004/5 first half year3 profit before tax2 £24.3m (UK GAAP £33.0m).

The restated financial information, together with a slide presentation and accompanying commentary are available through the Investor Centre of the company’s website at www.northernfoods.com.