The hurricane struck Louisiana and Alabama this past weekend, affecting approximately 2 million people.

"Food donations are especially important after a disaster strikes," said Amina Dickerson, Senior Director, Corporate Community Involvement at Kraft Foods. "They make an immediate positive difference in people's lives during a time of tremendous need. The American Red Cross is doing an outstanding job getting donations from companies, such as Kraft, to families affected by the disaster."

"The American Red Cross is grateful for Kraft's donation of food to support Hurricane Gustav relief efforts," said Jeff Towers, Chief Development Officer at the American Red Cross. "Kraft consistently supports Red Cross disaster responses through financial and product donations."

At this time, Kraft is not aware of any impact on its employees or their homes.

Earlier this year, Kraft donated $1.3 million to help victims of various disasters such as the Midwest flooding, China earthquake and Myanmar cyclone. Since 2000, Kraft has contributed a total of $9.2 million in cash and products for humanitarian aid to different locations worldwide. Over the last five years, Kraft has donated more than $100 million in cash and $300 million worth of food to hunger relief and healthy lifestyle projects around the world.

ABOUT KRAFT FOODS INC. For more than a century, Kraft (http://www.kraft.com) has offered delicious foods and beverages that fit the way consumers live. Today, we are turning the brands that consumers have lived with for years into brands they can't live without. Millions of times a day in more than 150 countries, consumers reach for their favorite Kraft brands, including nine with revenues exceeding $1 billion: Kraft cheeses, dinners and dressings; Oscar Mayer meats; Philadelphia cream cheese; Maxwell House coffee; Nabisco cookies and crackers and its Oreo brand; Jacobs coffees; Milka chocolates; and LU biscuits. Kraft is one of the world's largest food and beverage companies with annual revenues exceeding $37 billion, more than 100,000 employees and more than 180 manufacturing and processing facilities globally. The company's stock (NYSE: KFT) is listed on the Standard & Poor's 100 and 500 indexes as well as the Dow Jones Sustainability Index and Ethibel Sustainability Index.

SOURCE Kraft Foods Inc.

http://www.kraft.com

The manufacturing facility in Ontario is small in size with limited equipment. After the closure takes effect in September 2008, production will be relocated to another company plant in Mason City, Iowa.

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In the split-off piece of the deal, Kraft said its shareholders will be able to exchange some or all of their Kraft shares and receive shares of stock in Cable Holdco.

The Cable Holdco stock will then be immediately exchanged for shares of Ralcorp on a one-for-one basis following the merger of Cable Holdco and a Ralcorp subsidiary.

Kraft said Kraft shareholders will own up to 0.6613 shares of Ralcorp for each Kraft share exchanged. The exchange offer will expire on Aug. 4 and will coincide with the closing of the Ralcorp deal.

Kraft said about 30.5 million shares of Cable Holdco will be offered in exchange for Kraft common stock. Once the deal is complete, Kraft shareholders are expected to own about 54 percent of the new Ralcorp with Ralcorp shareholders owning about 46 percent.

Shares of Kraft Foods rose 29 cents to close $29.25, while shares of Ralcorp rose six cents to $50.74 in after-hours trading. During regular trading, Ralcorp shares fell $1.32 to close at $50.68.

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