Adoption of IFRS

Premier Foods plc
12 July 2005


PREMIER FOODS PLC ANNOUNCES ADOPTION OF INTERNATIONAL FINANCIAL REPORTING
STANDARDS

Premier Foods plc today announces that it has adopted International Financial
Reporting Standards (IFRS) with effect from 1 January 2005. The group's results
will be published under IFRS commencing with the half-year results, which will
be released on 6 September 2005. This press release describes the impact of the
conversion from UK GAAP to IFRS on the group's results for 2004 and sets out the
comparatives that are expected to form the base for 2005 performance.


Summary of main changes for 2004

             Operating profit      Net profit            Net           EPS  
        - continuing business       after tax      liabilities at     Basic
                                                  31 December 2004
                       £m              £m                  £m         Pence
Previously
reported
under UK GAAP         73.1            6.2                (14.9)         3.9
in IFRS format

Pension
adjustments*           9.8            6.9                (51.9)         4.3

Amortisation
adjustments*           7.4            5.5                  5.5          3.5

Other
adjustments*          (2.3)          (2.8)                 9.4         (1.8)

Total
adjustments*          14.9            9.6                (37.0)         6.0


IFRS*                88.0            15.8                 (51.9)        9.9

* Unaudited

The group's turnover is unaffected by the change of accounting basis. The major
items impacting the operating profit are:

  * The cost of pensions and other employee benefits under IAS 19 (Employee
    Benefits). The adjustment to operating profit is primarily due to a
    non-recurring item that arises because expected asset returns exceeded the
    interest accrual on the liabilities of the scheme during the course of the
    year; and


  * The cessation of goodwill amortisation as a result of IFRS 3 (Business
    Combinations).

IAS 19 has also been a major factor in the increase in the net liabilities of
the group as the net deficit of the group's pension schemes is brought on to the
balance sheet for the first time.

The detailed schedules and explanatory notes are available online at
www.premierfoods.co.uk/about/investor/financial/financial-presentations.cfm.



Commenting on this change in accounting basis, Paul Thomas, Group Finance
Director of Premier Foods plc, said: 'The information we have released today is
intended to help our shareholders and the financial community to understand the
effect of IFRS on our reported results as we move to full adoption. While
reported earnings have been modified by these new standards it is important to
recall that the underlying cash flows and economics of the business remain
unchanged.'

A telephone conference for financial analysts will take place at 10.30 am London
time on Tuesday 12 July 2005 with a brief presentation followed by a Q&A
session. Dial-in telephone numbers are as follows:

UK: 0208 3223331
Europe: [phone]
Restated IAS/IFRS figures and the presentation for the telephone conference are
available online at www.premierfoods.co.uk/about/investor/financial/
financial-presentations.cfm. There will be a telephone replay facility for the
conference call on telephone number 020 7081 9440, account number 801102, pass
number 050712, for 7 days.

The IFRS restatement of preliminary results for year ended 31 December 2004 are
unaudited. The financial information set out in the announcement does not
constitute the Company's statutory accounts for the years ended 31 December
2004. The UK GAAP balance sheets as at 1 January 2004 and 31 December 2004 are
derived from the statutory accounts for the year ended 31 December 2003 and 31
December 2004. The auditors reported on those accounts; their report was
unqualified and did not contain a statement under either section 237 (2) or
section 237 (3) of the Companies Act 1985.

Certain statements made in this presentation are forward looking statements.
Such statements are based on current expectations and are subject to a number of
risks and uncertainties that could cause actual results and performance to
differ materially from any expected future results and performance, express or
implied, by forward-looking statements. Factors that might cause forward-looking
statements to differ materially from actual results include, among other things,
regulatory and economic factors. Premier Foods' assumes no responsibility to
update any of the forward-looking statements contained herein.

Further enquiries to:

Premier Foods - Investor Relations:
Paul Thomas 01727 815850
Gwyn Tyley 01727 815850



                      This information is provided by RNS
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