12/05/2005

Board of Directors approved the 1st Quarter Report as of March 31, 2005. Net sales amounting to € 24.1 million (vs. € 24.9 million as of 31/3/04), EBITDA amounting to € 2.9 million (vs. € 2.9 as of 31/3/04) and earnings before taxes totalling € 1.4 million (vs. € 1.7 million as of 31/3/04 due to extraordinary income).

The Board of Directors of Centrale del Latte di Torino - a Company listed in the Star Segment of Borsa Italiana (the Italian Stock Exchange) which, together with its subsidiaries Centrale Latte Rapallo and Centrale del Latte di Vicenza, produces and sells fresh milk, dairy, and ultrafresh products - approved today the first quarter Report as of 31st March 2005.

As of the end of the first quarter 2005, the Group reported net sales amounting to € 24.1, basically in line with the results reported as of 31st March 2004, which totaled € 24.9 million. These figures attest to a consumption drop already reported during the second half of the previous year.

In the first quarter, sales of "fresh milk" accounted for 45.6% of total sales, of "UHT milk" for 21.1%, of "yogurt" for 7.3%, of "bulk milk and cream" for 3.5%, and of other "packed products" for 22.4%.

It should be pointed out that the "yogurt" segment recorded an increase, following the successful introduction of probiotic drinkable yogurt, the production and sale of which began last February. In only two months, sales of this product grew to account for 12.4% of total sales in this market segment.

The share of fresh products - e.g. salads, plain and filled fresh pasta - also grew thus confirming that consumers do like products with a high quality and service content.

Despite an overall drop in consumption, the Group maintained good margin levels in 2005 compared with 31/3/2004, owing to careful cost containment and rationalization policies.

More specifically, as of 31/3/2005 the Group's EBITDA amounted to € 2.9 million versus € 2.9 as of 31/3/2004 and EBIT amounted to € 1.6 million, hence showing a slight improvement from€ 1.5 million as of 31/3/2004).

On a consolidated level, as of 31/3/2005 the Group reported earnings before taxes totaling € 1.4 million, slightly less than € 1.7 million as of 31/3/04, a figure which also included extraordinary income items from the sale of Treasury shares.

The Group's net financial position (totalling €-2 million) also recorded a significant increase from the previous FY (€-4.6 million). The worse net financial position compared to 31st December 2004 (€-1.8 million) is to be attributed to the works for the construction of the new plant in Vicenza, the cost of which will be covered by a long term loan.

The Holding Company Centrale del Latte di Torino as of end of March 2005 reported total sales amounting to€ 14.6 million, basically in line with € 14.8 million of 31st March 2004. EBITDA amounting to € 2.3 million slightly improved from € 2.2 million as of 31/3/2004, together with EBIT totalling € 1.7 million versus € 1.5 million as of end of March 2004. Profit before taxes amounted to € 1.6 million versus € 1.7 million of the same period in the previous year.

"Despite a general decrease in consumption - stated Mr. Luigi Luzzati, President of Centrale del Latte di Torino & C. S.p.A. - we are satisfied with the achieved results that show that the Group has been able to maintain a good market share in its reference areas through quality and customer focus policies. We expect a seasonal increase in sales, particularly in the yogurt segment."

Turin - 12 May, 2005