Parmalat : The Board of Directors approves the Interim Management Statement at September 30, 2016

- A STRONG NEGATIVE IMPACT FROM THE DEVALUATION OF LOCAL CURRENCIES, IN PARTICULAR IN VENEZUELA, VERSUS THE EURO.

IN THIS UNFAVORABLE SCENARIO, AT CONSTANT EXCHANGE RATES AND SCOPE OF CONSOLIDATION AND EXCLUDING VENEZUELA, GIVEN THE CONTEXT IN THAT COUNTRY,

- AT CURRENT EXCHANGE RATES AND SCOPE OF CONSOLIDATION AND CONSIDERING VENEZUELA, NET REVENUE DECREASED (-2.4%), BUT EBITDA AND PROFIT FOR THE PERIOD WERE IN LINE WITH THE PREVIOUS YEAR

- 2016 GUIDANCE: THE EBITDA TARGET IS IMPROVED, NET REVENUE GROWTH PROJECTED AT ABOUT 2-3%

Milan, November 10, 2016 - The Board of Directors of Parmalat S.p.A., meeting today under the chairmanship of Gabriella Chersicla, reviewed and approved the Interim Management Statement at September 30, 2016, the highlights of which are reviewed below.

In the first nine months of 2016, the global economy was characterized by moderate growth and an uncertain trend.

In addition, during the same period, there was the global surplus in the supply of raw milk, largely attributable to the elimination of milk quotas in the European Union, which kept milk prices relatively low, albeit with significant regional differences and with indications of a trend reversal in some areas starting at the end of the third quarter.

Among the main countries in which the Group operates, the situation remains highly critical in Venezuela, given the country's economic and political uncertainty and high consumer price inflation.

More in detail, net revenue amounted to 4,632.1 million euros, down 112.4 million euros (-2.4%) compared with 4,744.5 million euros in the first nine months of 2015.

With data at constant exchange rates and a comparable scope of consolidation1 and excluding the results of the Venezuelan subsidiary, net revenue increased by 91.4 million euros (+2.4%), with a positive contribution from all of the Group's sales regions, except Europe.

With data at constant exchange rates and scope of consolidation and excluding Venezuela, the EBITDA increase amounts to 26.4 million euros (+9.6%), thanks mainly to the gain reported in North America, the United States primarily. This year-over-year improvement in profitability reflects the effect of efficiency boosting programs and sales promotions, coupled with the positive impact of a favorable trend in the cost of raw milk.

1 A comparable scope of consolidation is obtained by excluding the results of the activities acquired in Brazil (Elebat), Mexico (Esmeralda Group) and Australia (Longwarry and the yogurt and dessert activities).

The performance of the main geographic regions is reviewed below.

The Europe sales region generated net revenue of 797.4 million euros in the first nine months of 2016.

A significand devaluation of the ruble versus the euro had a negative impact of about 8.9 million euros on the region's revenue.

Results with data at constant exchange rates show slightly lower net revenue than the previous year.

In Italy, which accounts for about 90% of Europe's net revenue, the markets in which Parmalat operates were characterized by negative consumption trends. Despite this challenging context, the local subsidiary retained the leadership position in the milk sector and increased its market share in the UHT milk category, thanks mainly to its Zymil brand. It also strengthened its first-place competitive position in the UHT cream category, thanks to a strong performance by its Chef brand.

The North America sales region, net revenue totaled 1,746 million euros in the first nine months of 2016.

The devaluation of the Canadian dollar versus the euro had a negative impact on the region's revenue amounting to about 55 million euros; on average, the U.S. dollar followed a steady trend during the two periods under comparison.

With data at constant exchange rates, the region's net revenue increased by 2.7% compared with the first nine months of the previous year.

In the United States of America, the sales volumes reported by the local subsidiary increased significantly, driven by a positive performance in the cheese category, which accounts for about 80% of the total volume, and higher sales in the ingredients category. In a context characterized by a steady increase in consumption in the cheese market, considering the categories in which the local subsidiary operates, Parmalat strengthened its leadership position in the chunk mozzarella, soft ripened cheese and ricotta segments and confirmed its competitive positions in the other segments in which it operates (fresh mozzarella, snack cheese, feta cheese, gourmet cheddar cheese and gourmet spreadable cheese).

In Canada, Parmalat confirmed its second-place competitive position in the cheese sector, reporting higher sales volumes than in the previous year. The local subsidiary also held steady its positions in the milk market and in the yogurt category, thanks to its Astro brand.

The Latin America sales region includes the subsidiaries that operate in Brazil, Mexico, Venezuela, Colombia, Ecuador and Paraguay and some smaller companies. The Group strengthened its presence in Brazil, with the acquisitions of LBR (January 2015) and Elebat (July 2015), as well as in Mexico, Uruguay and Argentina, with the acquisition of the Esmeralda Group in the second quarter of 2015.

The region's net revenue totaled 1,015.9 million euros in the first nine months of 2016.

With data at constant exchange rates and comparable scope of consolidation, excluding Elebat and Esmeralda and the impact of Venezuela, the region's net revenue grew by 7.5% compared with the previous year.

In Brazil, even though the economy is continuing to feel the effects of a recession, the first signs of a recovery by the local currency are becoming apparent. While the net revenue reported by the local subsidiary in the first nine months of the year, achieved in the context of an ongoing reorganization of its activities (following the acquisitions completed in 2015), did show a significant increase, the growth rate is expected to slow already in the coming months. Parmalat operates,

and is maintaining its competitive positions, in the two largest segments of the country's diary market, cheese and UHT milk, both characterized by a positive consumption trend.

In Mexico, where a reorganization of the production activities and the sales organization is currently under way, the cheese market, which is the main segment in which the local subsidiary operates, expanded on a volume basis.

In Venezuela, where the situation remains highly critical, both from an economic and political standpoint, the local subsidiary reported a sharp contraction in sales volumes.

In the Africa sales region net revenue totaled 280.1 million euros in the first nine months of 2016. The devaluation versus the euros of all of the local currencies, the South African rand in particular, had a negative translation effect that reduced net revenue by about 65 million euros.

With data at constant exchange rates, the region's net revenue increase by 9.2% compared with the previous year.

In South Africa, which accounts for about 85% of the region's results, Parmalat confirmed its market leader position in the flavored milk and cheese categories, thanks to a strong performance by the Parmalat brand. In addition, the local subsidiary strengthened its second-place competitive position in the yogurt segment and confirmed its second-place position in the UHT category.

In the Oceania sales region, net revenue totaled 762.3 million euros in the first nine months of 2016.

The devaluation of the Australian dollar versus the euro had a negative translation effect of about 20 million euros on net revenue.

With data at comparable exchange rates and scope of consolidation - excluding Longwarry, acquired in the first quarter of 2015, and the yogurt and dessert activities, acquired in the first quarter of 2016 through the Parmalat Australia YD subsidiary - the region's net revenue increased by 0.8% compared with the first nine months of the previous year.

It is worth mentioning that the Group's operations in Australia are in the process of reorganizing their activities, with the aim of expanding their presence in their target markets, improving the procurement of production components and achieving greater efficiency and the rationalization of production facilities.

Parmalat retained the leadership position in the pasteurized milk category and confirmed its second-place market position both in the flavored and UHT milk categories. The new activities acquired from Fonterra helped consolidated the position of the local subsidiary as the leader in the dessert market and the second player in the yogurt market.

The Group's profit for the period totaled 107.5 million euros, basically in line with the amount earned in the first nine months of 2015 (-0.5%), despite the strong negative impact of the devaluation of local currencies versus the euro.

With data at constant exchange rates and scope of consolidation and excluding Venezuela, the profit for the period shows an increase of 24.1% compared with the previous year.

The net financial position amounted to 119 million euros, down 191.8 million euros compared with 310.8 million euros at December 31, 2015. The main reasons for this decrease include the cash absorbed by operating activities for 58.2 million euros, mainly attributable to seasonal factors (91.4 million euros in the first nine months of 2015); the cash absorbed by non-recurring transactions for 46 million euros, mainly in connection with the acquisition of the yogurt and dairy dessert activities in Australia, and the payment to BRF S.A. of the price adjustment on the net financial position and working capital of Elebat Alimentos S.A.; the cash absorbed by financing

activities for 47.2 million euros mainly attributable to the use of a portion of the Parent Company's liquid assets for investments maturing in more than one year; the payment of dividends for 33 million euros and a negative translation effect of 7 million euros.

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The growth originally projected for the second half of the year, proved to be, in terms of net revenue, lower than expected, due mainly to a smaller increase in the cost of raw milk than originally anticipated.

For 2016, at constant exchange rates, considering pro forma 2015 comparative data for the new acquisitions and excluding the Venezuelan subsidiary, given the situation of uncertainty, the high level of inflation and the massive devaluation of the local currency, Parmalat estimates call for growth of about 2-3% for net revenue and more than 10% for EBITDA.

There continue to be uncertainties in the Latin America area, specifically regarding Brazil, due to a challenging macroeconomic context. These uncertainties are not expected to have a significant impact on the consolidated net revenue and EBITDA growth estimates provided above for the current year. However, these uncertainties could affect the area's growth estimates for future years, requiring a revisions of existing projections in connection with the preparation of the industrial plan, and have an impact on the asset valuation process.

Disclaimer

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This document contains forward looking statements, particularly in the section entitled "2016 Guidance". Projections for the fourth quarter of 2016 are based, inter alia, on the Group's performance in the third quarter of 2016 and take into account trends in subsequent periods. The Group's performance is affected by exogenous variables that could have unforeseen consequences in terms of its results: these variables, which reflect the peculiarities of the different countries where the Group operates, are related to weather conditions and to economic, socio-political and regulatory factors.

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As required by Article 154 bis, Section 2, of the Uniform Financial Code (Legislative Decree No. 58/1998), Pierluigi Bonavita, in his capacity as Corporate Accounting Documents Officer, declares that the accounting information provided in this press release is consistent with the information in the supporting documents and in the Company's books of accounts and other accounting records.

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The Interim Management Statement at September 30, 2016, which was not audited, will be made available to the public by November 11, 2016. The abovementioned document will also be available on the Company website: www.parmalat.com  Investor Relations  Financial Reports.

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Tables showing the highlights of the Group's operating and financial performance are annexed to this press release.

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