Dairy Crest Regulatory News (DCG)

7 Dec 2007 07:14

Dairy Crest Group PLC06 December 2007 7 December 2007 Dairy Crest Group plc ("Dairy Crest" or "the Company") Response to Office of Fair Trading ("OFT") Statement Dairy Crest announces that, in common with a number of other processors andretailers, it has reached an early resolution agreement with the OFT concerningits investigation into the "milk price initiatives" of 2002 and 2003. Under thisagreement Dairy Crest expects to pay a significantly reduced fine of £9.4million provided that it continues to cooperate fully with the OFT'sinvestigation. This amount will be treated as an exceptional item in the yearending 31 March 2008. The OFT investigation relates to a period five years ago when the farmingcommunity was facing extreme difficulties following the Foot and Mouth outbreakin 2001. The milk price initiatives in 2002 and 2003 were aimed at supportingfarmers through this difficult period by returning higher prices to them fortheir milk. The implementation of these initiatives was very well publicised atthe time and received widespread support including strong political backing. Dairy Crest is pleased to have reached an agreement with the OFT that removesuncertainty on this matter and allows the company to move forward. In additionDairy Crest has taken action to reinforce its ongoing competition law complianceprogramme. For further information: Dairy Crest Group plcWill Shaw, Investors 01372 472477Nicole Lander, Media 01372 472419 BrunswickSimon Sporborg / Laura Cummings 020 7404 5959 Notes: 1. The expected fine of £9.4 million represents an imposed penalty of £14.5million less a 35% discount for cooperation. This information is provided by RNS The company news service from the London Stock Exchange