Trading Update

Premier Foods plc
09 January 2006


Trading update for the year to 31 December 2005


Healthy Christmas trading delivers operating profits and margins in line with
our expectations.  Business well-positioned for 2006.


Premier, one of the leading suppliers of grocery products in the UK, is
providing the following update for the year ended 31 December 2005, ahead of its
preliminary results announcement on 7 March 2006.


We expect total reported grocery sales for continuing operations for the year to
be up by approximately 15% and like-for-like grocery sales growth of around 2%.
We expect like-for-like sales growth after adjusting for the effect of the fire
in 2004 at our Bury St Edmunds factory of around 1%.  EBITA1 and margins are
anticipated to be within the range of our expectations.


Robert Schofield, Premier Foods plc CEO, said:


'2005 has been another active year for Premier.  The acquisitions and disposals
we have made during the year have strengthened our portfolio and taken the share
of our grocery sales from branded products to over 60%.  They have also moved
our portfolio into higher growth categories and we are well placed to take
advantage of the increasing trend for 'healthy eating'.


'As indicated at the time of the interims, we were looking to offset the
exceptional level of inflation in energy costs through price rises and we are
pleased to have achieved a satisfactory level of cost recovery. The impact on
sales of exceptionally mild autumn weather has been compensated for by healthy
Christmas trading.'


Following the sale of our tea business in October 2005, we have redefined our
product groups into 'Convenience Foods, Pickles, Sauces and Meat Free' and '
Spreads, Desserts and Beverages'.


Convenience Foods, Pickles, Sauces and Meat Free

Sales for this product group are anticipated to be significantly ahead of 2004
due to the acquisition of Quorn and Cauldron Foods.  Like-for-like sales are
anticipated to be in line with 2004's sales of £347.5m, after adjusting for the
disposal of the Jonker Fris business.  The second half has seen continued strong
growth of our Branston and Loyd Grossman brands but this has been offset by
lower sales of our smaller brands and own label convenience foods.


We launched a range of Branston Baked Beans and Pasta during the fourth quarter
of 2005 having identified that there was a desire from the consumer for improved
quality in these categories.  The launch has gone well and has received
substantial marketing support during the fourth quarter of the year.


We are very excited about the opportunities for Quorn and Cauldron, particularly
because of the increasing consumer trend towards healthier eating. The
meat-alternative category continues to grow strongly and both Quorn and Cauldron
continue to grow their market share.


Spreads, Desserts & Beverages

Sales for this product group (which excludes tea which is treated as
discontinued) are anticipated to be significantly higher than the £246.9m
recorded in 2004 due to both strong organic growth and the acquisition of the
Bird's desserts business in February 2005.  The organic growth is being driven
by new product development, growth of snacking formats and new own label
contracts.


The transfer of production of the Birds and Angel Delight brands acquired in
February to our Knighton factory was completed during the fourth quarter of
2005.  As we outlined at the time of our interim statement, we have incurred
transitional costs during the year associated with sourcing production from
Kraft whilst installing the new lines.  These costs ceased on the transfer of
production.


Potatoes

As we indicated at the time of our interim announcement, sales for this division
are anticipated to be significantly lower than 2004's reported sales of £150.3m
as a result of lower market prices and volumes.  During 2005 we have realigned
the business with its customers through the acquisition of the Gedney's fresh
produce business and adjusted the business' cost base through the closure of
four of its six packing facilities. This will ensure that we will enter 2006 as
a competitive supplier of a broad range of fresh produce from a stabilised base.


We will record the trading results of the tea and Jonker Fris businesses, which
were sold during the second half of the year, along with a net exceptional gain
on the disposals of approximately £40m under Discontinued Operations.


Preliminary results for the year ended 31 December 2005 will be announced on 7
March 2006.  We will host a presentation to analysts at 9am at Merrill Lynch
Financial Centre, 2 King Edward Street, London, EC1A 1HQ.



Enquiries:
Paul Thomas, Finance Director
Robert Lawson, Director of Mergers & Acquisitions and Investor Relations
Gwyn Tyley, Investor Relations Manager
Premier Foods plc                          Tel:     [phone]



Michael Berkeley
Sara Batchelor
Anthony Kennaway
Citigate Dewe Rogerson                     Tel:     [phone]


Notes to Editors


Premier Foods plc is a leading UK manufacturer and marketer of grocery products.
Premier manufactures and markets grocery products for the retail grocery and
out of home channels in two principal product segments:

     •  convenience foods, pickles, sauces and meat free; and
     •  spreads, desserts and beverages.

Premier also operates a potato packing and marketing business in the United
Kingdom, supplying the retail grocery, out of home and food manufacturing
channels.


Premier's branded products include Quorn and Cauldron Foods meat alternatives,
Ambrosia custard and milk puddings, Bird's and Angel Delight desserts, Branston
pickles, baked beans and pasta, Hartley's preserves and desserts, Gale's honey
and lemon curd, Crosse & Blackwell convenience foods, Sun-Pat peanut butter,
Sarsons vinegar, Haywards pickles, Smash instant mashed potato, Marvel powdered
milk creamer and Waistline salad dressings, soups and cooking sauces.  In
addition, the Company produces Cadbury cocoa-based beverages, HP convenience
foods and Loyd Grossman cooking sauces and soups under agreement or licence.
Premier also produces a range of retailer brand products, principally for the
major multiple retailers.



Premier's current market capitalisation is £732m million (at market close on 6
January 2005).






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