PRESS RELEASE Settlement Agreement with Ontario Teachers Pension Plan Board

Parmalat S.p.A. announces that its Board of Directors, meeting today under the chairmanship of Francesco Tatò, reviewed the arbitration proceeding filed by the Ontario Teachers Pension Plan Board ("OTPPB") against the subsidiary Parmalat Canada Inc., in which the parties reached a settlement agreement for the determination of the Liquidity Payment due to OTPPB, pursuant to the decision issued on October 29, 2012, by the Ontario Superior Court of Justice.
The total amount of the Liquidity Payment provided by the settlement agreement amounts to 170.4 million CAD$. Parmalat Canada Inc. shall pay OTPPB, by no later than January 2, 2013, the amount of
72.5 million CAD$, in addition to 97.9 million CAD$ already paid on November 26, 2012. The settlement agreement provides for a full and final settlement of all matters, disputes and claims between the parties, their successors, and representatives with regard to the Liquidity Payment Agreement and the arbitration proceeding filed by OTPPB.
Under the procedure provided by the agreement, the parties were unable to reach a shared position as to the amount of the Liquidity Payment, since Parmalat Canada Inc. quantified the payment in 92.6 million CAD$, while OTPPB's quantification ranged from 193.3 to 203.3 million CAD$.
Taking into account the provision for a risk reflected into the Parmalat S.p.A.'s Consolidated Financial Statements for 2011, as well as in the 2012 First Half Financial Report, the settlement agreement impacts on the Consolidated Financial Statements of the current fiscal year for approximately 70.4 million CAD$, with an after tax effect of about 52.2 million CAD$ (54.8 million Euros and 40.7 million Euros, respectively, at the expected CAD$/Euro exchange rate as of December 31, 2012).
Finally, the Board of Directors has examined the information available related to the recent announcement from Saputo Inc., one of the major Parmalat competitors in the Canadian market on the acquisition of Morningstar Foods from Dean Foods Company.
The acquired company, operating in the U.S. milk and dairy products market, with a significant presence of not high value added products, has an estimated turnover of approximately USD 1.6 billion and EBITDA amounting of about USD 156 million
The price set with the Seller for the acquisition amounts to USD 1.45 billion. The applied multiple with respect to EBITDA seems to be approximately 9.5.
Milan, December 15th, 2012
Parmalat S.p.A.

Parmalat S.p.A. Sede: Via delle Nazioni Unite, 4 43044 Collecchio (Parma) Italia Tel.+39.0521.8081 Fax +39.0521.808322

Cap. Soc. € 1.761.186.917 i.v. R.E.A. Parma n. 228069 Reg. Imprese Parma n. 04030970968 Cod. Fisc. e P. IVA n. 04030970968

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