GRUPO LALA Purchases National Dairy from DFA

11 May 2009

Acquiring National Dairy and its leading regional brands provides LALA a unique opportunity to further broaden the manufacturing and marketing of value-added dairy products in the United States.

11/05/09 GRUPO LALA, one of the largest dairy companies in the world, and Dairy Farmers of America, Inc. (DFA), a leading U.S. dairy cooperative, announced that LALA has acquired milk processing company National Dairy from DFA. The purchase expands LALA's presence in the United States and allows DFA to invest in new strategic projects.

National Dairy, based in Dallas, is one of the largest milk processing companies in the United States and a leading producer of branded and private-label dairy products. The company's most recognized regional brands include Borden, Dairy Fresh, Velda Farms, Flav-O-Rich, Sinton's, Cream O' Weber, Meyer Dairy, Dairymens, Coburg Dairy, Goldenrod and Georgia Soft Serve Delights.

"Acquiring National Dairy and its leading regional brands provides LALA a unique opportunity to further broaden the manufacturing and marketing of value-added dairy products in the United States," said Eduardo Tricio, chairman of LALA. "We look forward to working with National Dairy's management and employees to deliver top-quality, innovative and nutritious products to customers."

"LALA brings a breadth of resources and strong track record for understanding consumers' needs, creating and manufacturing innovative products and marketing brands," said Rick Beaman, president of National Dairy.

National Dairy operates 18 processing facilities in the United States and will operate as a wholly-owned subsidiary of LALA. The existing management team will continue to lead day-to-day operations.

"We enjoy a strong relationship with LALA and look forward to continuing that relationship well into the future. They are a reputable company, and, like DFA, are focused on their people and on producing top-quality products," said Tom Camerlo, chairman of the DFA Board of Directors. "The National Dairy sale is truly a win-win scenario, as LALA is gaining a company with strong performance in the U.S. market, and DFA can continue to explore new investment opportunities on behalf of its members."

LALA's branded products have been quickly growing in popularity among U.S. Hispanics, while the acquisition of the Frusion and La Creme brands has bolstered its share of the drinkable yogurt and yogurt-based dessert categories respectively.