Sligro Food Group N.V., Veghel, and Totaal Gemak, Maastricht, expect to reach agreement on the sale of the Milo activities to Totaal Gemak.

Milo is a chain of more than 60 tobacconists and convenience shops operated by independent retailers. It carries a range of smokers’ requisites, services (including lottery tickets), magazines, greeting cards, soft drinks, sweets and gifts. Milo has a national presence and is one of the larger formats of its kind in the Dutch market. The wholesale value of its turnover in 2004 amounted to € 20 million, 65% of which related to smokers’ requisites.

In the current market conditions, in which government measures are leading to a significant national fall in the sale of smokers’ requisites, Milo is having to sharpen up its positioning and give greater prominence to a variety of product groups that are not in Sligro Food Group’s core range. Less synergy will therefore be generated from the relationship in the future. Totaal Gemak, however, counts these activities amongst its core specialities.

Sligro Food Group is a listed group of food retail and food service companies selling directly and indirectly to the entire Dutch market for food and beverages. Sligro Food Group aims to be a consistent, quality company, achieving controlled growth in all its activities and for all its stakeholders. Its turnover in 2004 was € 1,447 million and its net profit nearly € 55 million. The number of employees on a full-time-equivalent basis was 3,000.

The transfer of Milo is expected to be completed in March. The transaction will not affect Sligro Food Group’s net profit.

Veghel/Maastricht, 25 February 2005