Business Wire/May 16, 2007/PARIS -- Groupe DANONE announces today the signature of an agreement with Vialat to acquire 70% of its fresh dairy activity in Chile. Vialat, owned by the Bethia Group, will retain 30% of the business.

Danone has been active in Chile since the beginning of 2006 with products imported from Argentina such as Activia and Yogurisimo. Vialat's fresh dairy business (30 million euros of sales in 2006) enjoys a strong position on its market with the Calán and Parmalat brands. This acquisition will enable Danone to offer an enhanced range to the Chilean consumers, produced mainly in their domestic market.

As a result of the acquisition, Danone will benefit from additional distribution capabilities as well as access to a strong milk sourcing network and a local production base.

With an annual per capita fresh dairy consumption in Chile averaging 7.5kg, compared with 13kg in Argentina and 22kg in Western Europe, the Chilean fresh dairy market offers promising scope for development.

This partnership is part of Groupe DANONE's strategy to increase its positions in the Latin American fresh dairy market.

The closing of the transaction should take place before the end of June 2007.

From the May 23, 2007, Prepared Foods e-Flash