Acquisition

Kerry Group PLC
02 March 2004


                                News Release

2 March 2004                                                  Immediate Release

                Kerry Group announces a major expansion of its
                      global food ingredients business

Kerry, the global ingredients, flavours and consumer foods group, today
announced that it has entered into an agreement to acquire Quest Food
Ingredients from the ICI Group.

Quest Food Ingredients is a leader in innovation and applications of
bio-ingredients and pharma-ingredients, serving pharmaceutical, culinary, snack,
bakery, dairy and confectionery markets worldwide.  On a 2003 pro-forma basis,
the business being acquired had annual revenues of US$255m and earnings before
interest, taxation, depreciation and amortisation (EBITDA) of US$37m.  The value
of net assets being acquired, including a 50% investment in a joint venture
manufacturing unit in Esterol, Malaysia, is US$150m.

Total consideration for the acquisition amounts to US$440m.  Kerry Group will
finance the acquisition through existing lines of credit.  Completion is
expected in the second quarter of 2004.

Quest Food Ingredients operates from nine major sourcing units located in
Utrecht, Netherlands; Norwich NY, USA; Rochester MN, USA; Zwijndrecht,
Netherlands; Esterol, Malaysia; Brantford, Canada; Cebu, Philippines; Cork,
Ireland; and Menstrie, UK.  Technology and innovation in Quest Ingredients is
driven from two Centres of Excellence located in Naarden, Netherlands and
Chicago, USA - complemented by satellite development centres across major
markets.  The business being acquired has leading global positions in
bio-ingredients and pharma-ingredients including protein hydrolysates,
emulsifiers, yeast flavourings, enzymes, hydrocolloids, cultures and
fermentation products.  Quest Ingredient technology platforms enhance nutrition,
flavour, texture and shelf life of food and beverages.  With sales and market
development resources located in 23 countries, the business has well established
global customer relationships across the pharmaceutical, culinary, bakery,
dairy, brewing and confectionery industries.  In 2003, sales in European markets
accounted for 40% of Quest's ingredients sales; North American markets 38% of
total sales; Asia Pacific markets 10% of sales and Rest of World markets
accounted for 12% of total sales.

As part of this agreement, the commercial and technical relationship between
Quest Food Ingredients and the Quest Flavours Division will be maintained, with
Quest Ingredients continuing to supply ingredients to Quest Flavours.

Commenting on the acquisition, Kerry Group Chief Executive Hugh Friel said, 'the
acquisition of Quest Food Ingredients, as well as expanding our position in
taste and texture ingredients, brings a number of important new technology
platforms to Kerry.  With the increasing focus by the global food industry on
the key areas of health, nutrition and food safety, this acquisition means
additional exciting growth opportunities for the Group.  In particular Quest has
a longstanding relationship with the pharmaceutical industry - through
hydrolysed proteins used in cell tissue culture, specialist ingredients for
tabletting, therapeutic and nutritional products.  Complementing our existing
ingredients businesses, Quest has an excellent geographic market spread -
extending Kerry's market reach particularly in Eastern European and Asian
markets and adding a new list of global customers'.

                                    - ends -


For further information please contact:
Frank Hayes
Director of Corporate Affairs                         Tel no [phone]
                                                               Fax no +353 66
7182972
Kerry Web Site:                                          www.kerrygroup.com


                      This information is provided by RNS
            The company news service from the London Stock Exchange