Sligro Food Group First-Quarter Trading Update

Sligro Food Group First-Quarter Trading Update

Sligro Food Group’s organic sales growth in the first quarter was somewhat better than expected.

Revenues for the food retail activities were practically unchanged, after adjustment for the disposal of the Milo format, which was completed in April 2005. The supermarket chain EM‑TÉ Supermarkten is currently rolling out its revamped format at all stores. The Golff format, too, is being given a fresh look.

The improved market positioning is beginning to lift sales again for similar foodservice outlets. Because of the reorganisation and speed of integration in the first half of 2005, it will only be in the second half of the year that the basis for comparison of foodservice sales will be made easier. VEN’s converted outlets in Rotterdam (Spaanse Polder) and The Hague (Zichtenburglaan) are doing well in terms of both sales and cost control. The self-service outlet opened at the end of February in Amsterdam has already led to a twofold increase in self-service sales compared with the outlet in Diemen, which has now been closed. In mid-June, two outlets in Alkmaar will be merged into the VEN outlet, which is currently being extended and restyled in preparation. The restructuring of the foodservice delivery activities is also making steady progress but will not be entirely concluded before the end of 2006.

The ongoing price competition continues to squeeze margins for all the group’s activities. As expected, the first quarter of 2006 saw results continue to fall compared with the corresponding period in 2005. Nevertheless, in view of the current improvement programmes which we have been implementing since the beginning of 2005, we are forecasting a similar profit for the first half of 2006 to that in 2005 (€18.8 million). This forecast does not take account of the possible impact of the takeover of Inversco Holding announced today.

The half-year results will be published on 20 July 2006.

Veghel, 20 April 2006

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