Arla Foods announces Board changes

The Board of Arla Foods UK plc is pleased to announce the appointment of Tim Smith as Chief Executive with effect from 1st June 2005.

Hanne Sondergaard, Executive Director (Marketing) and Martin Gilbert, Executive Director (Operations) will also join the Board with effect from 1st June 2005.

Neil Davidson who announced his retirement as Chief Executive on 24th January 2005 has decided to leave the Board with effect from 1st June 2005. However, he will continue working within the Company as a consultant to complete certain specific projects.

Sir David Naish, Chairman, said:

"We are delighted with the appointment of Tim as Chief Executive. After Neil informed the Board of his retirement, it was felt appropriate to conduct a full
review of potential candidates. After extensive research and the use of outside consultants, the Board unanimously decided because of Tim's experience,
leadership qualities and industry knowledge that an internal appointment was the correct route to follow.

"As it is an internal appointment, the Board felt that Tim should take up his position as soon as practical and Neil felt that this would be an appropriate
time to retire from the Board.

"We would like to thank Neil for his considerable contribution first to Northern Foods, then Express Dairies and more recently to Arla and the milk industry over the last 27 years where there have been significant changes and many challenges. We wish him well in his retirement."

Arla Foods UK plc is home to some of the UK’s leading dairy brands including Cravendale, Lurpak and Anchor. Processing approximately two billion litres of milk a year Arla continues to be one of the UK’s leading dairy companies and a supplier of fresh liquid milk and cream to the top seven retailers.

Over 2,500 daily deliveries are made directly to stores nationwide and Arla brands can be found across the dairy category. As well as the leader of the butter, spreads and margarine sector, and a major supplier of other added value products including flavoured milk and cheese, Arla continues to build working relationships with Arla Foods Milk Partnership, a unique group of dairy farmers, which supplies around 90 per cent of Arla's total milk requirements.

Behind this leading business is a team of circa 2,800 people across the UK located at our dairies, distribution centres and head office.