NORTHFIELD, Ill.--(BUSINESS WIRE)--April 28, 2006--Kraft Foods
Inc. (NYSE:KFT), a global leader in branded food and beverages, today
announced a seven-year, $1.7 billion agreement to receive information
technology services from Electronic Data Systems (EDS), a leading
provider of IT services. The agreement, which includes data centers,
hosting, telecommunications and workplace support services, begins on
June 1, 2006.
"World-class information technology is critical to Kraft's
long-term business success. Our strategy is to have the ideal mix of
in-house and outsourced activities. So we are very pleased that EDS, a
leading provider of IT services, will now be a key part of our team,"
said Roger Deromedi, Kraft Foods CEO.
Approximately 670 employees, who provide certain IT support to
Kraft, are expected to transition to EDS as a result of the agreement.
The Company will recognize asset impairment and implementation costs
related to the transition. Such costs will be expensed as part of the
Company's previously announced restructuring program.
"In outsourcing our infrastructure services to EDS, we take
advantage of their scale and exceptional capabilities to help us focus
our internal resources on our core business activities," said Alene
Korby, Kraft Foods Executive Vice President and CIO.
Kraft Foods (NYSE:KFT) is the world's second-largest food and
beverage company. For more than 100 years, we've been dedicated to
helping people around the world eat and live better. Hundreds of
millions of times a day, in more than 150 countries, consumers reach
for their favorite Kraft brands including Kraft cheeses and dinners,
Jacobs, Gevalia and Maxwell House coffees, Oscar Mayer meats, DiGiorno
pizzas, Oreo cookies, Ritz and Wheat Thins crackers and chips,
Philadelphia cream cheese, Milka and Cote d'Or chocolates, Honey
Bunches of Oats cereals, Good Seasons salad dressings and Tang
refreshment beverages. Consumers also started adding our new products
like Tassimo hot beverage system, South Beach Diet line and a growing
range of better-for-you Sensible Solution products to their shopping
baskets, continually expanding their list of Kraft favorites.
For more information on Kraft Foods, please visit our website at
This press release contains projections of future results and
other forward-looking statements. One can identify these
forward-looking statements by use of words such as "strategy,"
"expects," "plans," "anticipates," "believes," "will," "continues,"
"estimates," "intends," "projects," "goals," "targets" and other words
of similar meaning. One can also identify them by the fact that they
do not relate strictly to historical or current facts. These
statements are based on the Company's current assumptions and
estimates and are subject to risks and uncertainties. In connection
with the "safe harbor" provisions of the Private Securities Litigation
Reform Act of 1995, the Company is hereby identifying important
factors that could cause actual results and outcomes to differ
materially from those contained in any forward-looking statement made
by or on behalf of the Company. These factors include: (a) the effect
on the Company of competition in its markets, changes in consumer
preferences and demand for its products, including diet trends,
changing prices for its raw materials and local economic and market
conditions; (b) the Company's continued ability to promote brand
equity successfully, to anticipate and respond to new consumer trends,
to develop new products and markets, to broaden brand portfolios, to
compete effectively with lower priced products in a consolidating
environment at the retail and manufacturing levels and to improve
productivity; (c) the Company's ability to consummate and successfully
integrate acquisitions and to realize the cost savings and improved
asset utilization contemplated by its restructuring program; (d) the
impact of gains or losses, or lost operating income, from the sales
businesses that are less of a strategic fit within the Company's
portfolio; (e) the effects of foreign economies, changes in tax
requirements and currency movements; (f) fluctuations in levels of
customer inventories and credit and other business risks related to
the operations of the Company's customers; (g) the Company's access to
credit markets, borrowing costs and credit ratings, which may in turn
be influenced by the credit ratings of Altria Group, Inc.; (h) the
Company's benefit expense, which is subject to the investment
performance of pension plan assets, interest rates and cost increases
for medical benefits offered to employees and retirees; (i) the impact
of recalls if products become adulterated or misbranded, liability if
product consumption causes injury, ingredient disclosure and labeling
laws and regulations, potential claims relating to false or deceptive
advertising under consumer protection or other laws and the
possibility that consumers could lose confidence in the safety and
quality of certain food products; (j) consumer concerns regarding
genetically modified organisms and the health implications of obesity
and trans-fatty acids; (k) potential short-term volatility in the
trading volume and market price of the Company's stock as a result of
a spin-off of the Company from Altria Group, Inc.; (l) the risks
associated with EDS's ability to provide information technology
services to meet the Company's needs; and (m) the Company and EDS's
ability to effectively transition information technology services to
EDS on a timely basis. Developments in any of these areas could cause
the Company's results to differ materially from results that have been
or may be projected by or on behalf of the Company. The Company
cautions that the foregoing list of important factors is not
exclusive. For additional information on these and other factors that
could affect the Company's forward-looking statements, see the
Company's filings with the Securities and Exchange Commission,
including the Company's most recently filed Annual Report on Form 10-K
and subsequent reports on Form 10-Q and 8-K. Any forward-looking
statements in this press release are made as of the date hereof. The
Company does not undertake to update any forward-looking statement.
CONTACT: Kraft Foods Inc.
Annica Johansson (Media), 847-646-4538
Chris Jakubik (Investor Relations), 847-646-5494
SOURCE: Kraft Foods Inc.