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WARRNAMBOOL CHEESE AND BUTTER TO JOINT VENTURE WITH FRIESLAND

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      WARRNAMBOOL CHEESE AND BUTTER
TO JOINT VENTURE WITH FRIESLAND FOODS DOMO
Expanding production of nutritional and functional ingredients in Australia


Warrnambool Cheese and Butter Factory Holdings Ltd (WCB) and Friesland Foods
Domo are pleased to announce that they have signed a Memorandum of Understanding
to enter into a 50/50 joint venture agreement. This joint venture, to be named Great
Ocean Ingredients, will manufacture nutritional and functional ingredients for the
worldwide food, infant nutrition and pharmaceutical industries.

A new production facility will be constructed at Warrnambool Cheese Butter’s Allansford
site near Warrnambool, Victoria, Australia, and is expected to be operational in the
middle of calendar 2008. The total investment in the new production facility is expected to
be approximately AUD50 million / €30 million.

Drawing on Friesland Foods Domo’s expertise in manufacturing value added whey- and
milk-based ingredients, WCB’s raw materials will be processed into nutritional and
functional ingredients, such as Vivinal GOS. A prebiotic ingredient containing galacto-
oligosaccharides, Vivinal GOS is used for its beneficial effects on health as well as for
fibre enrichment. This product, which plays an important role in the development of a
healthy immune system, is used in different products, including infant nutrition and
beverages.

The growing world market for Vivinal Gos in recent years has given rise to this
opportunity, and it is anticipated that the joint venture will produce sufficient capacity to
meet the increased demand for Vivinal GOS in the foreseeable future.

‘We are very pleased to be entering into a strategic alliance with one of the leaders in the
production of nutritional and functional ingredients,’ said WCB Chairman David Karpin.
‘This project is ideally aligned with the value-adding aspect of the company’s three-
pronged growth strategy. Utilising WCB’s raw materials, we will further value-add to the
whey stream from the existing manufacturing process at our plant to create a cutting-
edge, high-value product for export.’

‘Friesland Foods Domo has found a long-term valuable partner in Warrnambool Cheese
and Butter,’ said Robert van Ballegooijen, Member of the Board of Management of Royal
Friesland Foods, Friesland Foods Domo’s parent company. ‘This joint venture fits into
Friesland Foods Domo’s strategy to strengthen our position as a global player in the field
of ingredients for value-added products. It also enables us to ensure supply contingency
towards our customers.’

Subject to final approval by WCB’s board and Friesland’s required approvals, it is
expected that the project agreements will be signed and the joint venture company will be
established in the coming months. It is anticipated that the plant will be built and
commissioned in the course of calendar 2008.



             Warrnambool Cheese and Butter Factory Company Holdings Limited
                   5331 Great Ocean Road, Allansford Victoria 3277 Australia
         Telephone: (03) 5563 2100 Facsimile: (03) 5563 2156 Website: www.wcbf.com.au
                                ACN 071 945 232 ABN 15 071 945 232
Friesland Foods Domo is part of Royal Friesland Foods, one of the world’s leading
multinational dairy companies. Friesland Foods Domo develops, produces and markets
high-quality whey- and milk-based ingredients. These ingredients are supplied to food,
nutrition and pharmaceutical industries throughout the world. Domo has five production
facilities in the Netherlands, sales offices in Malaysia and the UK, and a global network of
agents and distributors.

Warrnambool Cheese and Butter is the fourth largest milk processor in Australia and the
only dairy company listed on the Australian Securities Exchange. Established in 1888,
WCB draws its milk supply from some of the most productive and drought-resistant
dairying regions in Australia and processes more than 800 million litres of milk annually.
Warrnambool Cheese and Butter Factory manufactures high-quality dairy products
including cheese, butter, fresh milk, milk powder and whey protein concentrates for
domestic and export markets including Asia, Europe and the US.

ENDS

For more information, contact:

Bernard Kavanagh                                       Rob van Dongen
General Manager, Business Development                  Advisor Corporate Communication
Warrnambool Cheese and Butter                          Friesland Foods
Tel    : +61 3 5563 2103                               Tel     : +31 522 276 334
Mobile : +61 408 529 500                               Fax     : +31 522 276 477

				
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