News Release

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

Springfield, MO  June 10, 2008 - Kraft Foods (NYSE:KFT), Springfield Underground and Exel today celebrated the opening of a 400,000-square-foot below-ground warehouse at 3610 East Kearney Street in Springfield, designed with energy efficiency and sustainability in mind.

The new facility serves as a central distribution hub for Kraft, which leases the facility from Springfield Underground. Exel operates the warehouse for Kraft.

The 36-degree-Fahrenheit warehouse, which houses well-known refrigerated products like Kraft cheeses, Oscar Mayer meats and Jell-O refrigerated puddings, capitalizes on local unique geological features for energy and resource efficiencies. Built into an area mined for limestone, it boasts a solid limestone roof and ceiling, limestone structural columns and walls that are 35% limestone. Recycled material from quarry operations provided building fill material.

The building’s long-term durability is enhanced because it is unaffected by sun, wind and precipitation. Additionally, its underground design, with grass and other vegetation on the exterior, prevents incremental storm-water runoff that would be created by new surface construction of similar size.

In addition to the natural features providing environmental benefits, the warehouse takes advantage of technology advances to promote further efficiencies: energy-saving fluorescent lighting throughout the facility and high-efficiency refrigeration equipment with reduced horsepower requirements. Low-impact design on the surface reduces industrial sprawl.

“We’re extremely excited about this new facility, which we estimate will use 65% less electricity than a comparable surface warehouse,” said David Klavsons, Vice President, Logistics for Kraft. “The energy savings roughly equates to the annual power requirements of 700 homes.”

He added that by consolidating distribution and reducing multiple stops by Kraft and customer trucks, an estimated 180,000 gallons of fuel may be saved, and carbon dioxide emissions will be reduced by approximately 4 million pounds, annually.

“This facility incorporates all of the best practices that we learned in 48 years of underground development,” said Louis Griesemer, President and CEO of Springfield Underground Inc. “The energy efficiency, security and other amenities of the underground make this a state-of-the-art distribution facility. This is our single largest project and brings our underground square footage to over 2.2 million of developed space.”

Within the facility, Exel provides full-service inbound and outbound solutions including storage of finished goods, order picking and fulfillment services.

“Our relationship with Kraft began nearly four decades ago and has grown to now include eight facilities in the U.S. The underground warehouse represents one of many innovative solutions resulting from our collaborative relationship,” said Scott Sureddin, Senior Vice President Operations for Exel’s Consumer business unit.

Springfield is well-positioned as the site for a regional refrigerated distribution facility for Kraft, due to the needs of the local Kraft plant and convenience to other Kraft manufacturing facilities in the southern Midwest; the presence of a Kraft Private Fleet hub and other major transportation carriers; and the proximity to customer distribution points for direct shipments.

Kraft has been utilizing warehouse space offered by Springfield Underground since the 1960s. The new construction more than doubles the below-ground square footage leased by Kraft.

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.