Ralcorp Holdings, Inc. buys Parco Foods, L.L.C.

10/02/06 Ralcorp Holdings, Inc. has announced that it has completed the purchase of Parco Foods, L.L.C., a Chicago-based manufacturer of high quality cookies for sale primarily in the in-store bakery channel. Parco Foods, which operates a baking facility in Blue Island, Illinois (outside of Chicago) and employs approximately 300 people, had net sales of approximately $50 million for the year ended December 25, 2005. Terms of the transaction were not disclosed.

Parco will be added to Ralcorp's Frozen Bakery Products segment and will enhance Ralcorp's existing in-store bakery cookie offerings. During the remainder of Fiscal 2006, the transaction is expected to be slightly dilutive to earnings per share. However, the acquisition should be accretive beginning in the first quarter of Fiscal 2007.

Ralcorp produces a variety of store brand foods that are sold under the individual labels of various grocery, mass merchandise and drug store retailers, and frozen bakery products that are sold to restaurants and other foodservice customers. Ralcorp's diversified product mix includes: ready-to- eat and hot cereals; snack mixes and corn-based snacks; crackers and cookies; snack nuts; chocolate candy; salad dressings; mayonnaise; peanut butter; jams and jellies; syrups; sauces; frozen griddle products including pancakes, waffles, and French toast; frozen biscuits; and other frozen pre-baked products such as breads and muffins. In addition, Ralcorp holds an interest of approximately 20 percent in Vail Resorts, Inc., the leading mountain resort operator in the United States.

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