Nestle to Enter Exploratory Talks with Snow Brands

The discussions will center on the best ways and means to
combine Snow Brand's strong market position and broad
product portfolio in Japan with Nestle's worldwide know-how
and technology in milk, chilled products and ice-cream. For
Nestle, the project represents an opportunity to broaden the
product base of its very successful Japanese operation which
in 1999 had sales of CHF 3.4 billion, mainly in the areas of
coffee, confectionery and petcare. A successful conclusion
of the discussions would lead to a substantial broadening of
the product portfolio in that country.

The initiative illustrates Nestle's global strategy of using
selective acquisitions, joint-ventures and alliances to
strengthen its product portfolio in key markets.