22/09/2005

The Board of Directors approved the First Half Year Report as of June 30, 2005 drawn up in compliance with international IAS/IFRS accounting principles.  Consolidated net sales amounted to Euro 48.1 million (vs. Euro 48.8 million as of 30/6/2004), EBITDA amounted to Euro 5 million (vs. Euro 5.3 million as of 30/6/2004), while net profit amounted to Euro 1.1 million (vs. Euro 1.1 million as of 30/6/2004). Consolidated net sales as of August 31, 2005 amounted to Euro 62 million, thus in line with the figure as of August 31, 2004.

The Board of Directors of Centrale del Latte di Torino & C. - 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 Half Year Report as of June 30, 2005 drawn up in compliance with international IAS/IFRS accounting principles.

In the first half of 2005, the Group attained consolidated net sales for Euro 48.1 million, thus substantially in line with the figure of the first half of 2004, amounting to Euro 48.8 million.

In the first half of 2005, "Fresh milk" accounted for 45.6% of total sales, "Long-life milk" for 20.4%, "Yoghurt" for 8.2%, "Bulk milk and cream" for 3.7%, and "Other packed products "for 22.1%.

During the first half of the year, a drop in consumption was recorded - as was already the case during the second half of the previous financial year and the first quarter of this year.

In such a general context, the Group is adopting policies focused on increasing profitability and product quality. As a matter of fact, it is believed that the quality and safety of products sold are essential features much appreciated by consumers, and that such an industrial policy will be paying back in the long run.

The Group's profit margins during the first half of 2005 remained stable, with EBITDA amounting to Euro 5 million, as against Euro 5.3 million as of 30/6/2004. EBIT, conversely, amounted to Euro 2.8 million, vs. Euro 3 million as of 30/6/2004.

The Group's earnings before taxes as of June 30 2005 amounted to Euro 2.7 million, vs. Euro 2.9 million as of June 30 2004. Conversely, net profit amounted to Euro 1.1 million, without change from the same period of the previous financial year.

The Group's net financial position as of June 30 2005, following the payment of dividends and taxes, amounted to Euro -933 thousand, thus showing an improvement from Euro -2 million as of March 31 2005, and from Euro -1.8 million as of December 31 2004.

Following the adoption of the new accounting principles, the Group's Consolidated net worth as of December 31 2004 dropped from Euro 39.7 million to Euro 39.2 million. As of June 30 2005, owing to the application of the new IAS/IFRS accounting principles, the net worth amounted to Euro 37.7 million.

The Holding Company Centrale del Latte di Torino, as of June 30 2005, recorded net sales amounting to Euro 28.9 million, vs. Euro 28.7 million as of June 30 2004.

EBITDA, which did not substantially change from the previous year, amounted to Euro 3.8 million; EBIT, recording a 3.6% increase from the first half of 2004, amounted to Euro 2.8 million. Finally, after-tax profit grew from Euro 1.2 million in the previous year to Euro 1.5 million this year, with a 31.3% increase.

Following the introduction of IAS/IFRS accounting principles as of December 31 2004, the Holding's net worth increased from Euro 40.2 million to Euro 41 million. As of June 30 2005, the Holding's net worth amounted to Euro 42.3 million.

Finally, the Board of Directors also acknowledged the agreements made between the affiliated company Salads & Fruits Srl based in Casteggio (PV) and the Camozzi Family. They concern the acquisition by the Camozzi family of a 25% share in Salads & Fruits Srl and, at the same time, of the taking over by Salads & Fruits of a 25% in Belgravia Srl based in Azzano San Paolo (BG). This is a subsidiary company of the Camozzi family that for many years has been doing successful business in the production and marketing of 4th range salads, with sales in 2004 totalling Euro 6.5 million.

"Even though the economic scenario is characterised by a general consumption drop, - stated Mr. Luigi Luzzati, President of Centrale del Latte di Torino & C, S.p.A - our sales and profitability figures remained in line with our forecasts without any compromise on product quality and safety. We have further proved to be a well established and successful inter-regional player in the market of fresh and ultra fresh products, and to be able to introduce and market new products in the most dynamic market segments. "

"The beginning of the third quarter has been quite positive - ended Mr. Luzzati - since as of August 31 2005 the Group's consolidated sales amounted to Euro 62 million - in line with the same period of last year - thus making up for the drop in sales recorded during the first half of 2005."

Turin - 22 September, 2005