Kellogg Promotes Mackay to Chief Operating Officer

BATTLE CREEK, Mich., Aug. 22 /PRNewswire-FirstCall/ -- Kellogg Company (NYSE: K) today announced that it has promoted David Mackay to president and chief operating officer. In this newly created position, Mr. Mackay will be responsible for both the U.S. and International divisions, reporting directly to Carlos M. Gutierrez, chairman and chief executive officer.

Prior to this promotion, Mr. Mackay had been executive vice president, Kellogg Company and president, Kellogg USA, in charge of the Company's U.S. division since 2000. During his 26-year business career, he has worked in management and marketing positions in the U.S., Europe, Australia, and Asia.

Mr. Gutierrez said, "This is a natural organizational move that comes at a time when our business is performing very well. With major structural changes and the Keebler integration largely behind us, we are now focused on executing our strategy. The chief operating officer position assumes responsibility for day-to-day operations of our businesses worldwide, allowing me to focus on broader strategic issues and our goal of long-term sustainable growth. David is the ideal person for this role. His outstanding leadership skills have been evident in his stewardship of our U.S. division. He and I will work closely together to ensure that we continue to deliver dependable results well into the future."

Reporting directly to Mr. Mackay will be Alan Harris, executive vice president, Kellogg Company and president, Kellogg International; Brad Davidson, president, U.S. Snacks; Dave Pfanzelter, president, U.S. Food Away From Home; Mark Wagner, senior vice president and general manager, Warehouse Club and Retail Specialty Brands; and Kevin Smith, senior vice president, U.S. Marketing Services.

Also reporting to Mr. Mackay will be Jeff Montie, who is being promoted to executive vice president, Kellogg Company and president, North American Morning Foods. Mr. Montie, who has been in several key marketing and management posts in several countries during his 16 years at Kellogg, was previously senior vice president, Kellogg Company and president, U.S. Morning Foods. With this promotion, he will assume responsibility for Kellogg Canada.

"Under Jeff's leadership, our U.S. cereal business has delivered outstanding results," said Mr. Gutierrez. "This promotion recognizes Jeff and his team's success."

In another promotion, John Bryant, executive vice president, chief financial officer, will assume operational responsibility for the U.S. Natural and Frozen Foods business unit, with Tony Palmer, president, U.S. Natural and Frozen Foods, reporting to him. Mr. Bryant will report indirectly to David Mackay in that capacity, while continuing to report directly to Mr. Gutierrez in his existing role of chief financial officer.

Commented Mr. Gutierrez, "To date, John's experience has been primarily in financial roles, and he has excelled as chief financial officer. The additional responsibility of U.S. Natural and Frozen Foods will give him valuable operating experience, allowing him to contribute even more to the Company."

Separately, Kellogg announced that Janet Kelly, executive vice president, corporate development and administration, general counsel, and secretary, has decided to leave the Company. Ms. Kelly joined Kellogg in 1999, after having worked for Sara Lee Corporation as secretary and general counsel and as a partner at the law firm of Sidley & Austin.

Mr. Gutierrez said, "We are extremely grateful for the contributions Janet has made to the Company. She built a world-class legal department and she championed and executed the largest acquisition in our Company's history. She also spearheaded important changes to our compensation system and our corporate governance policies, as well as the formation and rollout of our Company Values. Personally, Janet provided me with valuable counsel and guidance. We will miss her, and we wish her the best."

In her roles as general counsel and corporate secretary, Ms. Kelly will be succeeded by Gary Pilnick, currently vice president, deputy general counsel. Mr. Pilnick has been with Kellogg since 2000. Previously, he held several positions at Sara Lee Corporation, most recently as vice president, chief counsel, Branded Apparel; as well as at Specialty Foods Corporation; and the law firm of Jenner & Block. Mr. Pilnick is promoted to senior vice president, general counsel, and secretary, and he will report directly to Mr. Gutierrez. Ms. Kelly's responsibilities for corporate communications will be assumed by Celeste Clark. Currently vice president, Nutrition and Corporate Affairs, Ms. Clark has been with Kellogg for 26 years. She is promoted to senior vice president, Corporate Affairs, and reports directly to Mr. Gutierrez.

"Key to any company is the depth and strength of its management team," said Mr. Gutierrez. "David Mackay has proven his effectiveness as an operator and a leader, and he is more than ready to assume responsibility for the worldwide day-to-day business operations. Jeff Montie has demonstrated strong business acumen and leadership skills in every position he has held. John Bryant's promotion is consistent with our efforts to challenge and train promising executives, and we will continue to benefit from his financial stewardship as CFO. Gary Pilnick has proven himself as a leader, both internally and externally. Celeste Clark has long been a key leader in our communications and nutrition efforts." He added, "We are fortunate to be able to make these management transitions at a time when we are executing our strategy effectively and delivering strong results."

About Kellogg Company

With 2002 sales of $8.3 billion, Kellogg Company is the world's leading producer of cereal and a leading manufacturer of convenience foods such as cereal bars, frozen waffles, toaster pastries, cookies, and crackers. The Company also produces natural and vegetarian foods. Founded in 1906 and dedicated to providing nutritious, good-tasting foods, Kellogg has manufacturing facilities in 19 countries and sells its products in more than 180 countries. Kellogg brands include Kellogg's, Keebler, Pop-Tarts, Eggo, Nutri-Grain, Cheez-It, Morningstar Farms, and Kashi. For more information, or for any non-GAAP financial information provided in response to questions asked during today's conference call, please visit Kellogg's web site at .

Forward-Looking Statements Disclosure

This news release contains forward-looking statements related to business performance, cash flow, costs, sales, brand-building, operating profit, earnings and growth. Actual performance may differ materially from these statements due to factors related to the Keebler acquisition, including integration problems, failures to achieve synergies, unanticipated liabilities, and the substantial amount of indebtedness incurred to finance the acquisition (which could, among other things, hinder the Company's ability to adjust rapidly, make the Company more vulnerable to a downturn, and place the Company at a competitive disadvantage to less-leveraged companies); competitive conditions and their impact; pricing and promotional spending; the effectiveness of marketing spending and programs; the success of productivity improvements and business transitions; the success of innovation and new product introductions; the recoverability of the carrying amount of goodwill and other intangibles; the availability of and interest rates on short-term financing; commodity prices and labor costs; actual market performance of investments; changes in consumer behavior and preferences; U.S. and foreign economic factors such as interest rates, statutory tax rates, and foreign currency translations or unavailability; legal factors; business disruption or other losses from terrorist acts or political unrest; and other factors.