DANONE : announces the execution of a final sale agreement of Dumex (China) to Yashili

--------- PRESS RELEASE ---------

Paris, December 2, 2015

Danone announces the execution of a final sale agreement of Dumex (China) to Yashili

Following the press release issued on July 24, 2015 announcing the conclusion of a preliminary agreement with Yashili and Mengniu, Danone today announced the execution of a final sale agreement of Dumex in China to Yashili, for a total €150 million.

By bringing the Dumex and Yashili brands closer together, the operation will build a strong local infant milk formula (IMF) brand platform.

This transaction remains subject to the approval of the relevant authorities and of Yashili shareholders.
                                                                                                                     

About Danone
Dedicated to bringing health through food to as many people as possible, Danone is a leading global food company built on four business lines: Fresh Dairy Products, Early Life Nutrition, Waters and Medical Nutrition. Through its mission and its dual commitment to business success and social progress, the company aims to create shared value for all of its stakeholders-its 100,000 employees, consumers, customers, suppliers and shareholders.
Present in over 130 markets, the company generated sales of €21.1 billion in 2014, with more than half in emerging countries. Danone's brand portfolio includes both international brands (Activia, Actimel, Danette, Danonino, Danio, Evian, Volvic, Nutrilon/Aptamil, Nutricia) and local brands (Prostokvashino, Aqua, Bonafont, Mizone, Blédina, Cow & Gate, Dumex).
Listed on Euronext Paris and on the OTCQX market via an ADR (American Depositary Receipt) program, Danone is a component stock of leading social responsibility indexes including the Dow Jones Sustainability Indexes, Vigeo and the Ethibel Sustainability Index. Danone is also ranked no. 1 in the 2013 ATNI index.

About China Mengniu Dairy Company Limited
China Mengniu Dairy Company Limited and its subsidiaries manufacture and distribute quality dairy products in China. It is one of the leading dairy product manufacturers in China, with MENGNIU as its core brand. Mengniu's diversified product range includes liquid milk products (such as UHT milk, milk beverages and yogurt), ice cream, milk formula and other dairy products (such as cheese). By the end of June 2015, the Group's annual production capacity reached 8.61 million tons. In March 2014, Mengniu became a Hang Seng Index constituent, making it the first blue chip Chinese dairy product manufacturer.

About Yashili International Holdings Ltd
Founded in 1983, Yashili International has developed into a modern large-scale company with over 4,000 employees. Yashili is specialized in research, development and manufacturing of nutritious food and now has infant milk formula as its core product. The company has established four domestic production sites in Chaozhou City and Guangzhou City of Guangdong Province, Qiqihar City of Heilongjiang Province, and Shuozhou City of Shanxi Province. The company is currently building a world-leading infant milk powder plant in Waikato, New Zealand.
A strong alliance has been formed after Mengniu's successful acquisition of Yashili in 2013. With the help of this powerful new shareholder, Yashili kicked off to a fresh start.