2003 press releases

• Continuing sales up 5.0% to £1,421.2m driven by Convenience up 7.9%
• Continuing operating profit* up £0.6m to £115.6m
  disappointing performance in biscuits offsets good progress elsewhere
  - Convenience up 8.5%: Grocery down 9.7%
• Earnings per share* up 6.5% to 14.81p: benefits from lower tax charge and share buyback programme
• Dividend increased 6.1% to 8.7p per share: dividend cover* increased
• Profit on sale of Ski and Munch Bunch brands less operational exceptional costs lifts FRS 3 pre-tax profit by 27.5% and earnings per share by 61.9%
• Net debt reduced by £90.1m
  - £100.1m returned to shareholders through dividends and share buybacks
  - disposal proceeds £145m
  - strong operational cash generation
• Biscuit stabilisation and recovery plans in place:
  - accelerated new product development programme
  - cost reduction initiatives
  - price increases successfully implemented
• Further group-wide initiatives to reduce cost base

"Sales in the first 7 weeks of the current year are up 7.6 per cent overall, and up 9.5 per cent with our five largest customers. This strong start was assisted by the timing of Easter and recent new business gains, although we anticipate that progress may moderate in the months ahead. In a demanding trading climate, we are pursuing a range of initiatives to enhance efficiencies and returns across the group. Action is being taken in our biscuit businesses to recover inflation, reduce costs and accelerate new product development; this is helping to arrest the trend of the second half of last year, though biscuit trading is expected to dampen Grocery performance in the first half. The entire Northern Foods team shares my determination that the group will fulfil its potential by delivering appropriate returns on our investments and maximising the potential of our strong positions in the growing convenience food market."

Peter Blackburn,
Chairman

^{* Figures quoted before goodwill amortisation and exceptional items}