NESTL… SELECTS INDIANA SITE AS LOCATION FOR NEW FACTORY, DISTRIBUTION CENTER

GLENDALE, Calif. (July 10, 2006) - Nestlé has selected a 190-acre site in Anderson, Ind., where it will build a $359 million, 880,000 sq. ft. factory and distribution center.

The facility, located approximately 40 miles northeast of Indianapolis, will produce NESTL…® NESQUIK® Ready-to-Drink (RTD) and NESTL…® COFFEE-MATE® Liquid products. The combined facility will initially employ nearly 300 employees (hourly and salaried combined). Construction will begin later this year, with an anticipated opening in the spring of 2008.

"Nestlé is committed to providing consumers with the best-tasting, nutritionally superior beverages, wherever and whenever they want them," said Rob Case, President, Beverage Division, Nestlé USA. "This new facility will enable us to greatly expand our production and distribution capabilities, thereby allowing us to better serve our consumers."

Steve Presley, Vice President and General Manager, Ready-to-Drink Beverages, Nestlé USA, headed the site selection committee and said that Nestlé chose Anderson, Ind., due primarily to its central location and the feeling that its welcoming environment would be a good place for Nestlé employees and their families to live. He further added, "We are deeply appreciative to the State of Indiana and the City of Anderson for working with us during the evaluation period and making this announcement possible. We look forward to being a good neighbor to the people of Anderson and to all of Indiana."

Nestlé will begin accepting applications for employment in 2007. Anyone interested in working for Nestlé should visit Nestlé's online career center at www.nestlejobs.com for additional information. Further announcements regarding job fairs or other employment activities will be announced in 2007.

About NESTL… NESQUIK RTD

NESTL… NESQUIK RTD, introduced in 1984, is the top national brand of 100 percent flavored milk with the largest distribution, share and brand awareness. Available in a wide variety of sizes, ranging from eight to 64 ounces, NESTL… NESQUIK RTD is available in grocery stores, convenience stores and vending machines nationwide. Its flavors include: Chocolate, Strawberry, Fat Free Chocolate, Very Vanilla, Buncha Banana and Double Chocolate. NESTL… NESQUIK RTD also offers a variety of milkshakes, including: Chocolate, Strawberry, Limited Edition Cookies 'n Milk and Vanilla Caramel. For more information about NESTL… NESQUIK RTD, please visit www.nesquik.com .