Danisco signs agreement on the divestment of Flavours and enters strategic partnership with Firmenich

·	The divestment of Flavours to Firmenich is based on an enterprise value of DKK
3.36 billion 
·	Strategic partnership agreement with Firmenich - a world leader with flavours
and fragrances 
·	Enhanced focus on growth in Bio Ingredients and Texturants & Sweeteners
·	Share buyback at the level of DKK 500 million once the divestment has been
concluded 


Danisco has entered into an agreement on the divestment of Flavours to
Firmenich, a world leader with flavours and fragrances. An enterprise value for
the activities has been agreed at DKK 3.36 billion, corresponding to 2.2 times
revenue in 2006/07. The agreement is subject to approvals by the relevant
authorities in a number of countries. The agreement is expected to be concluded
around the end of June 2007. 

At the same time, Danisco and Firmenich are entering a strategic partnership,
which will provide unique and comprehensive solutions for the food industry.
The agreement allows for Danisco maintaining a unique product offering for its
customers and for a strengthening of the position of both parties in the food
industry. 

Danisco's leading global market position in ingredients used in food as well as
industrial applications has been boosted over relatively few years through
organic growth and several acquisitions. The acquisitions of Rhodia Food
Ingredients (cultures) in 2004 and Genencor (enzymes) in 2005 were major events
enforcing Danisco's market position and strengthening our biotechnology
platform. 

Danisco has managed to obtain a global market position as no. 1, 2 or 3 within
Bio Ingredients and Texturants & Sweeteners. During the same period, a major
consolidation has taken place within the flavours and fragrance industry. With
revenue in Flavours of approx. 1.5 billion in 2006/07, corresponding to only
2-3% of the world market, Danisco's market position in this ingredients area is
limited compared with the largest players. Flavours currently employs some 800
employees, or less than 8% of the total staff in Danisco. 

Unfolding the potential: Enhanced focus on growth in Bio Ingredients and
Texturants & Sweeteners 
The divestment of Flavours should be seen as a value-creating and
forward-looking initiative. The new ownership will create a critical mass for
the activity and the strategic partnership allows us to further capitalise on
Danisco's global sales and applications organisation in close cooperation with
Firmenich. In addition, financial as well as managerial resources will be
released with a view to increasing growth in Bio Ingredients and Texturants &
Sweeteners, both enjoying a strong technology platform and market position. 

As a natural next step in ‘Unfolding the potential', an accelerated process is
being launched to identify additional growth initiatives based on Bio
Ingredients and Texturants & Sweeteners. The divestment of Flavours will
necessitate a resource adjustment, however, the basic objectives of ‘Unfolding
the potential' will remain unchanged. 

Accounting facts
The accounting gain is estimated at around DKK 0.4 billion after an expected
tax expense of DKK 0.4 billion. This tax expense is caused by the fact that the
transaction to a large extent involves activities that are integrated in the
legal entities of the Danisco group. The released invested capital of around
DKK 2.4 billion covers goodwill and operating assets including working capital
in equal measure. In consequence of the transaction, Flavours will be
recognised in the accounts for Q1 2007/08 under discontinued operations, and
the accounting gain will be recognised under special items. 

Planned share buyback
Proceeds after tax are expected at DKK 2.9 billion and will consequently reduce
Danisco's debt significantly. The group's financial gearing expressed as net
interest-bearing debt compared with EBITDA will as a consequence of the
transaction fall to the lower end of the financial gearing target range of 3.0
- 4.5. Share buybacks at the level of DKK 500 million are expected to be
launched once the divestment of Flavours is concluded during the first six
months of 2007/08. It should be noted that the group's capital structure is
regularly evaluated in order to ensure an optimal balance between the group's
gearing, strategic initiatives and financial scope. 

Outlook
The outlook for 2006/07 is maintained and the Announcement of Results is
released on 20 June 2007, where, as planned, the outlook for the present
financial year will be announced. 

Telephone conference
A telephone conference for investors, analysts and the press will be held on
Monday at 9:00 am. It will be possible to follow the conference from our
website. The telephone number for participation in the telephone conference is:
+353 1 436 4265. 

Firmenich
Firmenich is the largest privately-owned company in the perfume and flavour
business and ranks among the world's top three in the industry. Founded in
Geneva, Switzerland, in 1895, it has built its reputation on its innovation,
creativity and entrepreneurial spirit as global flavours partner to the leading
manufacturers of food, beverages, confectionery, dairy and pharmaceuticals. The
company had CHF 2.3 billion in annual revenue at end June 2006 and employs
4,800 people. 
www.firmenich.com

Danisco Flavours
Danisco's Flavours Division develops and produces a vast range of natural and
nature-identical flavours for the global food & beverage industry as well as
speciality chemicals and natural extracts for the flavour and fragrance
industry. The division is one of the world's leading producers of dairy
flavours, vanilla, citrus and coffee flavours. As an international flavour
house with flavour creation and application centres in strategic locations
worldwide, we are able to combine technical and creative flavour skills with
our extensive knowledge of food ingredients and tailoring our products to the
requirements of individual customers. In 2006/07 Danisco's Flavours Division
recorded revenue of approx. DKK 1.5 billion and employed some 800 people. 

Yours faithfully


Tom Knutzen
CEO