Plant Expansions

Tate & Lyle PLC TATE & LYLE ANNOUNCES £100 MILLION INVESTMENT IN GROWTH 1. Loudon, USA facility Tate & Lyle today announced plans for a £43 million (US$75 million) expansion to its Loudon, Tennessee, facility. It will enable Tate & Lyle to increase production of value added products and will also supply substrate for the new joint venture, DuPont Tate & Lyle BioProducts, LLC (being constructed adjacent to the facility) which will produce 1,3 propanediol (Bio-3G), the key building block for DuPont(TM) Sorona(R). Ethanol capacity will also be increased by 37 million gallons per year. There will be no increase in high fructose corn syrup capacity. By implementing proprietary technology, the expansion will both dramatically increase starch yields and reduce per unit energy consumption. The project includes investment in substantial environmental improvements. Subject to regulatory permit approvals, construction will begin later this financial year and the new capacity is scheduled to be operational in October 2007. The project is expected to cover the Group's cost of capital in the first full year of operation. 'These proprietary technologies, which have been developed by Group engineers in Europe and the Americas, allow significantly higher starch yields and lower energy consumption,' said Stanley Musesengwa, Chief Operating Officer of Tate & Lyle. 'In addition to lower operating costs, the expansion will be implemented at a lower capital cost per bushel than the traditional corn wet milling process and is an example of Tate & Lyle's experience and innovation at work. 'These are exciting times for the Loudon facility, which is seeing considerable investment and is creating jobs in the local construction industry. We look forward to working with the Tennessee Department of Environment & Conservation and local environmental groups and are confident that construction will begin shortly.' 2. Sagamore, USA facility Tate & Lyle today announced plans for a £57 million (US$100 million) expansion to its Sagamore facility in Lafayette, Indiana to increase capacity for food ingredient products. This will contribute to the delivery of Tate & Lyle's strategy to grow the contribution from value added products. The project includes investment in substantial environmental improvements. Subject to regulatory permit approvals, construction will begin later this financial year and the new capacity is scheduled to be operational by January 2007. The project is expected to cover the Group's cost of capital in the first full year of operation. The Sagamore plant is Tate & Lyle's primary US production site for modified food starches and is the flagship site for value added dent and waxy based food starch products. These products are used in a wide array of dairy, beverage, baking, snack, and dressings. Tate & Lyle has been successful in growing these markets and without this expansion production capacity at the plant would have become a constraint. This expansion is part of the Group's investment in growth. 'We have undertaken significant work to understand and anticipate changing consumer preferences and eating habits, and how the food processing and food service industries will respond to these trends,' said Iain Ferguson, Chief Executive of Tate & Lyle. 'The cumulative impact of this work coupled with our greater understanding of, and deeper involvement with, our customers is that we recognize the need for investment in modified food starch and maltodextrin at Sagamore to meet growing demand. 'The investments in both Sagamore and Loudon reflect our firm commitment to deliver against our strategy to grow our business, and in particular to grow the contribution from value added products. The expansions will increase the corn grind and demand for locally sourced crops whilst the environmental improvements are designed to reduce emissions and reflect Tate & Lyle's commitment to environmental performance and to the surrounding community.' Contacts Mark Robinson, Head of Investor Relations Tel: 020 7626 6525 or Mobile: 07793 515861 investorrelations@tateandlyle.com Ferne Hudson, Head of Media and Public Relations Tel: 020 7626 6525 Tate & Lyle is a world leading manufacturer of renewable food and industrial ingredients. It uses innovative technology to transform corn, wheat and sugar into value-added ingredients for customers in the food, beverage, pharmaceutical, cosmetic, paper, packaging and building industries. The Company is a leader in cereal sweeteners and starches, sugar refining, value added food and industrial ingredients, and citric acid. Tate & Lyle is the world number-one in industrial starches and is the sole manufacturer of SPLENDA(R) Sucralose. Headquartered in London, Tate & Lyle is listed on the London Stock Exchange under the symbol TATE.L. In the US its ADRs trade under TATYY. The Company operates more than 60 production facilities in 28 countries, predominately throughout Europe, the Americas and South East Asia. It employs 6,700 people in its subsidiaries with a further 4,500 employed in joint ventures. Sales in the year to 31 March 2005 totalled £3.3 billion. Additional information can be found on this website. www.tateandlyle.com SPLENDA(R) is a trademark of McNeil Nutritionals, LLC The DuPont Oval, DuPont(TM), The miracles of science(TM), Bio-PDO(TM) and Sorona(R) are registered trademarks or trademarks of DuPont or its affiliates.

Companies

Tate & Lyle (TATE)
UK 100

Latest directors dealings