Dairy Crest Group plc and Quadra Foods

13th February 2012

Dairy Crest Group plc ("Dairy Crest") and Quadra Foods Limited

On 2nd February 2012 Dairy Crest issued an Interim Management Statement in which it confirmed that overall trading was in line with its expectations. Its underlying trading has continued to be in line with expectations since that date.

Dairy Crest wishes to inform the market that a customer, Quadra Foods Limited ('Quadra'), has called in Administrators. As a result Dairy Crest anticipates it will increase its bad debt provision by up to £4 million. This is the total debt owed to us by Quadra although we are looking at several options to reduce the amount involved.

We expect to treat any charge as an exceptional item in 2011/12 and as such it will not impact on our dividend considerations. Dairy Crest has annual sales of £1.6 billion and this is an isolated incident. It will have no material effect on our year end borrowings.