Disposal

Glanbia PLC
22 July 2002



         Glanbia announces sale of UK foodservice distribution business

Glanbia plc ('Glanbia') announces that it has concluded an agreement to sell its
UK foodservice distribution business, Glanbia Food Service, to Peter's Food
Service Limited ('Peter's'), for an undisclosed consideration. The transaction
is expected to be completed on or about 2 August 2002.

Glanbia Food Service distributes chilled and fresh food products to a
nation-wide food service customer base from a central facility in Tamworth,
Staffordshire and eight regional depots. It had a turnover in 2001 of Stg£100
million (Eur155.60m*), employs 500 staff and currently has net assets, including
working capital, of approximately Stg£10 million (Eur15.56m*).

Commenting on the disposal, John Moloney, Group Managing Director, Glanbia plc,
said, 'This transaction follows a strategic decision by Glanbia to exit UK food
service distribution as part of a refocusing of our operations around our core
business and growth strategy.

'The UK foodservice supply sector is evolving into two distinct streams of
activity - manufacturing of bespoke food products for foodservice and the
provision of separate, dedicated logistics services. The sale of our
distribution operations to Peter's enhances their position as a significant
player in the logistics arena. It allows Glanbia to focus on our strengths as a
food manufacturer, including customising products for the food service market.

'However, Glanbia is fully committed to continuing as a major food supplier to
the UK foodservice sector, particularly in cheese and other dairy products, and
we have agreed supply and distribution arrangements with Peter's to serve the
market,' he concluded.

Peter's Food Service Limited is both a food manufacturer and a nation-wide
distributor of fresh and chilled food products to the foodservice sector,
similar in size to Glanbia Food Service.

A loss on the transaction of approximately Stg£15.3m (Eur23.8m*) arises, mainly
due to a write-back through the P&L account of goodwill previously written off
against reserves, together with fixed asset write-downs and the costs of the
transaction. This loss will be charged as a non-operating exceptional item to
the Group's 2002 financial statements.

ENDS

22 July 2002

*Exchange rate as at 19/7/02: Eur1.00 = Stg£0.6427

Issued by Corporate Communications, Glanbia plc.

Enquiries to Michael Patten, Group Director of Communications.

Tel: [phone] (w) , [phone] (m)




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