Kraft, Exel And Springfield Underground Mark Opening Of New Energy-Efficient Facility In Springfield

DON MILLS, ONTARIO - June 18, 2008 - Kraft Foods (NYSE:KFT), today announced that it intends to close its Scarborough, ON, manufacturing facility by the end of September 2008 and consolidate pudding production into another Kraft facility. The 43,500 sq.-ft-plant on 4 acres, located at 1440 Birchmount Road, makes shelf-stable ready-to-eat puddings and gels. The 81 employees were informed of the company's plans earlier today.

"As we studied our production capabilities across our plants that make ready-toeat puddings, we identified a potential opportunity to consolidate and use our facility equipment more effectively," Cynthia Waggoner, Vice President of Operations for Kraft Foods. "Going forward. we will be able to meet our customers' needs with production from another plant which has more versatile equipment."

She added that this action is consistent with Kraft' s efforts to improve its business performance for the long term.

"This is not a reflection on our employees at Scarborough," she added. "This is a strategic decision having nothing to do with their performance, which has been outstanding. We are committed to working with our employees through this difficult time to help make a smooth transition."

Kraft has more than 6,000 employees in Canada, with over 3,600 in the province of Ontario.

Contact:

Lynne Galia
Kraft Foods
416-441-5610

About Kraft Foods Inc.
For more than a century, Kraft (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 around the world, 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 facilities globally. The company’s stock (NYSE: KFT) is listed on the S&P 100 as well as the Dow Jones and Ethibel Sustainability Indexes. In Canada, company brands include Kraft dinner macaroni and cheese, Christie cookies and crackers, and Delissio pizza.