Sligro Food Group N.V. 2004 half-year prospects

Sligro Food Group N.V. 2004 half-year prospects

Sligro Food Group expects its net turnover for the first six months of 2004 to be slightly lower than in the comparable period of the previous year. The decline will be due in part to a reduction in the number of supermarkets served in the food retail channel and the adverse effect of the price war on turnover and margins at continuing retail outlets. In the food service channel, turnover is in line with expectations despite the difficult market conditions. Long-term contracts are expected with large accounts, while the positive development of turnover from small and medium-sized enterprises is continuing unabated. Increases in outlet size are having a visible impact on turnover figures. Sales in low-margin tobacco products, however, are coming under far greater pressure from government anti-smoking measures and higher duties than expected. Turnover in the food service channel will accordingly stabilise at best.

Cost saving measures and considerably lower interest charges are providing growing relief for the pressure on turnover and margins.

The profit on a property transaction announced in January will be considerably higher than the several million euros mentioned at the time. It is still uncertain, however, whether the transaction will be completed in the first or the second half of the year.

Excluding this non-recurring income, Sligro Food Group expects the net profit for the first half of the year to be equal to or slightly lower than the � 17 million achieved in the first half of 2003.

Sligro Food Group will publish its half-year figures on 15 July 2004, when it will also make a forecast on its performance in the second half of 2004.

Sligro Food Group N.V. encompasses food retail and food service companies selling directly and indirectly to the entire Dutch market for food and beverages. The group adopts a multichannel strategy covering various forms of sales and distribution (self-service and delivery) using different distribution channels. 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 2003 was � 1,356 million and its net profit nearly � 45 million. The average number of employees on a full-time-equivalent basis was 2,746.

Veghel, 15 April 2004

On behalf of the Executive Board of Sligro Food Group N.V.

A.J.L. Slippens

H.L. van Rozendaal

Tel. +31 413 34 35 00