DANONE :Danone welcomes the findings of New Zealand authorities' investigation of Fonterra concluding that all ingredients used

DANONE :Danone welcomes the findings of New Zealand authorities' investigation
    of Fonterra concluding that all ingredients used by Danone are in full
               compliance with the highest standards of quality

                    --------- PRESS RELEASE ---------

                          Paris, August 30^th, 2013

Danone welcomes the findings of the New Zealand authorities' investigation of
    Fonterrawhich conclude that all ingredients used by Danoneare in full
               compliance with the highest standards of quality

Following a statement  by the New  Zealand government and  Fonterra on  August 
2^nd warning that batches of ingredients  supplied by Fonterra to four  Danone 
plants in  Asia-Pacific  might  be  contaminated  with  Clostridium  botulinum 
bacteria, the Group  recalled selected  infant formula products  from sale  in 
eight markets^(1) of this region as  a precautionary measure. The warning  was 
lifted on  August 28^th  when New  Zealand's Ministry  for Primary  Industries 
(MPI) concluded after  several weeks of  tests that there  was no  Clostridium 
botulinum in any of the batches concerned.

None of the  many tests conducted  by the  Group, both before  and after  this 
critical period,  showed any  contamination whatsoever  of its  products  with 
Clostridium botulinum. Danone's  food safety  management system  is among  the 
most demanding and effective in the world and includes rigorous testing of all
of its  products.  But  because  Danone  makes  consumer  safety  an  absolute 
priority, its  teams  nonetheless  quickly  and  efficiently  deployed  recall 

These recalls have had a significant  impact on the Baby Nutrition  division's 
sales in  Asia.  Pierre-André Térisse,  Chief  Financial Officer,  said:  "The 
division's third-quarter sales will be down, but despite this, our Group is on
track to deliver organic  growth of around 5%  this quarter. We are  deploying 
action plans to restore sales in  affected markets. Their success will  enable 
Danone to meet its growth and margin targets for 2013."

The Group has also incurred non-current  costs to cover recall procedures  and 
efforts to boost sales.

Danone is currently reviewing its recourse and compensation options.

^(1) New Zealand,  Singapore, Malaysia, China,  Hong Kong, Vietnam,  Cambodia 
and Thailand

About Danone
Danone is an international company present on five continents. The group holds
top positions in healthy food  through four businesses: Fresh Dairy  Products, 
Baby Nutrition, Waters, and Medical Nutrition. Its mission is to bring  health 
through food to as many people as possible.
Danone has more than  190 production plants and  around 102,000 employees.  In 
2012, the company generated sales of over  €20 billion, with more than 50%  in 
emerging countries.
Listed on NYSE Euronext Paris, Danone  is a component stock of leading  social 
responsibility indexes including  the Dow Jones  Sustainability Indexes,  ASPI 
Eurozone and the Ethibel Sustainability Index.

Danone Fonterra


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Reuters clients.

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(i) the releases contained herein are protected by copyright and other
applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of
information contained therein.

Source: DANONE via Thomson Reuters ONE
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