First release March 10, 2005Focus on Probiotics

Groupe DANONEHealth Commitment and Fact Book

This presentation contains forward-looking statements

that reflect Danone's current views and estimates.

These statements are based on many factors and assumptions.

Changes in such factors or assumptions could produce

significantly different results.

Forward looking statements

Executive summary

Groupe DANONE’s business model and research strategy have yielded business successes and opened new potential worldwide.

Groupe DANONE has built strong leadership and brand equity in its categories, with Nutrition and Health central to the business foundations of the Group and to its sales growth track record.

Groupe DANONE continues to strengthen its commitment to Health and Nutrition and has identified growth opportunities in this area.Groupe DANONE has the R&D capabilities and the marketing know-how to achieve its strategic goals in the growing Health andNutrition market.

What Health & Nutrition mean for Groupe DANONE

Health & Nutrition are deemed to be, more than ever, major drivers of top line growth for the food industry

Our commitment in terms of product offer

Danone Vitapole: a catalyst for innovation

Focus on Probiotics

Our commitment in terms of product communication

Our commitment in terms of knowledge and education in Health& Nutrition

Contents

Health & Nutrition are deemed to be, more than ever, major drivers of top line growth for

the food industry

Introduction

+7.0%+5.1%+6.0% +7.8%

+3.6%

Major European peers*

+7.2%

Average 1999-2004

* Cadbury, Nestlé, Unilever

20002001

20022003

2004

2004

+2.9% Major European peers *

+6.6%

In 2004, Danone has hit a record top line growth…

… confirming its number-one position for top-line growth

Source: Euromonitor

Retail volume CAGR99-04

Worldwide

Health & Nutrition =

a key leverof consumption

+0.8%+1.9%

+2.0%+2.0%+2.2%

+2.4%+2.4%

+2.6%+2.7%

+2.9%+3.7%

+4.6%+9.4%

+11.8%

0% 2% 4% 6% 8% 10% 12%

RTE cereals

Soup

Baby food

Carbonated soft drinks

Confectionery

Ice Cream

Sweet biscuits

Cheese

Savoury biscuits

Sauces & Cond.

Frozen food

Yog & assimilated

Functional drinks

Still bottled water

Our focus on three fast-growing food categories: a major driver of growth

* Average ranking JP Morgan/ UBS/ Morgan Stanley

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

1357911

Like-for-like growthCAGR 03-04

Cadbury

Danone

Nestlé

Unilever

Campbell

Kellogg

Heinz

Kraft

PepsiCo

Coca-Cola General Mills

Health ranking Food analyst*

Health positioning: a key success factor for sustainable superior top line growth

Obesity is rising to epidemic levels, affecting 300 million people around the world (1)

Obesity is also an issue for developing countries

Obesity results from both a sedentary lifestyle and changes in nutritional behavior

(1) Source: WHO report, March 2004

Obesity is a contributory factor in cardiovascular disease, diabetes, some cancers, joint disorders and other pathologies…

Obesity has become a major public health issue…

Consumers and health professionals also look for :

Well-being, i.e facilitating digestion, optimizing hydration, managing satiety and energy levels …

Protection, i.e, preventing deficiencies, supporting immunity, maintaining cardiovascular health, preventing damage from free radicals …

Optimal growth, i.e supporting physical and mental development, building and preserving sound bone and dental capital…

… but concern for health extends beyond prevention of obesity

What Health & Nutrition mean for Groupe Danone

Groupe DANONE helps people around the world grow, live better and get more out of life through tastier, more varied and healthier food

products - every day

Health & Nutrition are central to Groupe DANONE’smission statement

- Optimizing the nutritional profile of our products

- Adapting our products to local nutritional needs, eating habits, and consumption occasions

- Developing products with additional proven health benefits

Understanding Health and Nutrition science and integratingpublic health issues

Contributing to consumer information and education on Healthand Nutrition

Structuring our product offer to better meet consumer needs by:

Our Health & Nutrition strategy is multi-pronged

19191964

1996Today

First zero-fat «fromage frais »

Yogurts sold in pharmacies

Isaac Carasso conducts research into lactic cultures with health benefits, working with the Pasteur Institute and ElieMetchnikoff.

1789

Discovery of the health

benefits of the natural mineral water in Evian

1846

First LU biscuits,

rich in grain

Focus on three productcategories with Health

and Nutrition value

Health & Nutrition are part of Groupe DANONE’s DNA

A steady stream of products with added

health benefits

A balanced diet combined with regular physical activity is crucial to individual health.

Only a wide variety of food can satisfy all nutritional needs.

Drinking and eating are basic needs- They should also be a pleasure.

The social and convivial aspect of meals is an essential part of well-being.

Individuals must be free to choose their own food, and to decide when and how they eat. They need clear and relevant information to make their choices.

Groupe Danone has strong core beliefs regarding Food, Nutrition, and Health

To develop new products suited to consumers' nutritional needs and

tastes, as well as products offering added health benefits, and to regularly improve existing products

To establish permanent relations with the scientific community

To support and encourage research in nutrition

To share knowledge with scientists, health professionals, and the public

To cooperate effectively with authorities and other public bodies

To provide clear and transparent communication

To claim only scientifically proven benefits

To use responsible advertising

To promote physical activity

These beliefs are embodied in 9 commitments

Shared by all Group companies

Contribute strongly to our corporate culture

These commitments are stated in Groupe Danone’s Food, Health, and Nutrition Charter

Our commitment in terms of product offer:

To develop new products suited to consumers' nutritional needs

and tastes, as well as products offering added health benefits, and to

regularly improve existing products

Using an in-house tool to evaluate and improve the nutritional profile of our products according to several composition criteria

Applied to Dairy and Biscuits & Cereal products

Nutritional profile Nutritionalrequirementsaccording to

consumer target

PRODUCT(or meal, diet )

CONSUMER POSITIONING ×× ==Re-balancing

potential

Unb

alan

cing

pote

ntia

l

Ensuring a good nutritional profile for our products: a constant priority

Cross-brand initiatives:

Trans-fatty acids threshold in DANONE products since 1998 : below 5 % of total fats

Improving nutritional profiles: recent initiatives in Biscuits and Cereal products

Brand initiatives:

Nutritional guidelines for Taillefine/ Vitalinea applied since 1998, LU and Prince Petit Déjeuner/ Breakfast brands since 1999

2001: optimization of the fatty-acid profile by using rapeseed oil for the Taillefine/ Vitalinea brand in Europe

2004 : total sugar content of LU Petit Déjeuner in France cut by 25%, replaced mainly with flour and fibers

A concept developed by Danone Vitapole for Biscuits andCereal products, launched in 1999, after 10 years of research

Based on a high content of slowly digestible carbohydratesFavoring a better use of energy by the body

Contributing to good nutrition A family-oriented product A cereal base for a balanced breakfast

LU Petit Déjeuner (France), Prince Start (Belgium), BeBe Dobre Rano(Czech Republic), Jubilee Good Morning (Russia), Sunshine (China)…

Launched in 1999 and now available in 9 countries

Developing innovative nutritional proposals: Long Lasting Energy

Adapting products to meet local nutritional needs (I)

In Asia, launch of biscuits with added calcium or iron

In Europe, launch of Bio/ Activia line extensions with added fibers

Danonino has been adapted to nutritional needs of local children in 12 countries with specific vitamin or mineral fortifications:

Brazil: enriched with calcium, zinc, iron, vitamins A and D Mexico: fortified with zinc, vitamins A, C and DPoland and the US: enriched with calcium and vitamin DFrance: fortified with vitamin D

Bringing a quick response to a local trend: low-carb diets in the US

60 million people in the US are on low-carb diets and have thus reduced their consumption of dairy products Dannon launched its low-carb range in January 2004: Light’n Fit CarbControl, now available in both cups (5 flavors) and bottles (4 flavors)

Dannon offer: balanced low-carb dairy products to meet the essential daily calcium requirements of people on low-carb diets. Danone has gained a clear lead in this segment (over 50% market share), which represented approx. 5% of the total value of the fresh dairy product market in 2004

Adapting products to meet local nutritional needs (II)

China : Danone Milk Biscuits with added calcium for children

Affordability is key in developing countries

Indonesia : Biskuat Susu with added calcium

India : Britannia Tiger with extra milk and calcium

Two billion people live on less than 2 euros a day in AsiaOur answer : affordable nutrition

Affordable

Nutrition

Marketing affordable nutrition: Biscuits in Asia

Increasing consumption of packaged water:Promoting the benefits of good hydration Enhancing product availability and convenience Offering safe packaged water in developing countries

Conquering new territories: Offering flavored, water-based beverages- a healthier alternative to soft drinks Developing functional drinks

Expanding water and beverage offerings for consumers

Probiotics with additional health benefits:

New opportunities:

Actimel Activia

(see last section of the presentation)

Danacol

Developing new products with specific health benefits

Danacol with phytosterols that help reduce cholesterol

Cardio-vascular problems - a worldwide issue

Danacol is a fermented dairy product enriched withphytosterols(2) that help reduce ”bad” cholesterol

A strong start in France

60 scientific studies show the positive impact of vegetal sterols on ”bad” cholesterol

(3) Nielsen 2004, volume, last period

launched in April 2004 in France, and now category leader (3)

In the UK, Ireland, Belgium, Portugal and Spain as a drinkable or spoonable product

Danacol is now being rolled out across Europe

(2) Active plant extract

In France, at least 20% of adults suffer from excessive levels of cholesterol (above 2.2 g/liter of blood)

CVDs(1) are the first cause of mortality in the world with around 10 million deaths/year (Lancet, 1997)

(1) CVD: Cardio-Vascular desease

Danone Vitapole: a catalyst for innovation

Uniting 3 Businesses Creating Synergies Speeding up Innovation

Danone Vitapole, an innovation catalyst, for all the Groupe DANONE brands

DANONE Institutes promoting nutrition

worldwide

Global & Local Marketing & Consumer research

Relationships with the scientific community and with authoritiesand other public

bodies

PreventiveFood Safety

center

International scientific

cooperation

Global & Local Nutritionists &

Health Marketing

Our Health and Nutrition Strategy is built on integratedexpertises and resources

Danone Vitapole Research & Development

Danone Vitapole Research & Development

Danone Vitapole:A community of 800 people worldwide:

- over 500 people in Daniel Carasso Research center-a worldwide network of developers to ensure proximity with local needs and accelerate project deployment - more than 110 Nutrition and Health professionals

R&D Budget: 1% of Group sales or € 130 million a year

* Nutritionists; physicians; gastro-enterology; cardiovascular and immunity specialists, microbiologists; molecular biologists; biochemists; foodengineers; food safety experts; consumer behavior and sensory evaluation specialists…etc

Daniel Carasso Research center:Approx. 70% of the Group’s R&D resources …

- of which 250 scientists (i.e 100% of Group’s resources in Research) dedicated to advanced applied research

- the rest being engineers dealing with Product Development, Food Safety, Quality and Support Services

A broad range of expertise in Science and Technology* to deliver scientifically proven health benefits, combined with superior taste preference

Our Research and Development capabilities to achieveexcellence

Reinforcing the leadership and image ofDanone products with health benefits

ACTIVE HEALTH

NUTRITION

PREFERENCE

TechnologicalEFFICIENCY

Winning recognition as a benchmark for good nutritional practice among

consumers, the scientific community and authorities

Danone aims to win a lead on competitorsin product preference and packaging

convenience

Regularly upgrading technology to- Ensure the safety, quality and compliance

of Danone products - Facilitate and accelerate industrial launches and worldwide roll-outs

Danone Vitapole focuses on 4 strategic domains …

ACTIVE HEALTH

NUTRITION

PREFERENCE

TechnologicalEFFICIENCY

Nutrition and Health benefits associated with:• Probiotics • Milk based products• Cereals• Hydration & Beverages • Active ingredients

Sensory preference through: • Understanding of consumer behavior• Advanced sensory evaluation & product optimization methods• Product profile and packaging design reflecting health claim

expectations

Formulation & processing tomaintain quality with:

• Low fat/ Low sugar product formulation• Texture and flavor tailoring• Controlled baking to protect nutrients• Mild processing of beverages• Functionally designed plastic containers

… which correspond to a diversity of specific expertises

Organization of scientific committees, bringing together international experts to reach scientific consensus

A network of 15 Danone Institutes promoting research, information and education in nutrition

Close partnership with independent research institutes to complement our expertise in nutrition and health

For examples: Probiotics committeesCarbohydrates and lipids health symposia Evian Water Scientific CouncilInternational Life Sciences Institute

Danone Vitapole develops strong links with the scientific community

Our commitment in terms of product communication:

To provide clear and transparent communication

To claim only scientifically proven benefits

To use responsible advertising

Groupe Danone undertakes to provide consumers with full information in a readily understandable form, in particularly byphasing in nutritional labels on all products and expanding consumer information services.

For example, hotlines staffed by dieticians, informational magazines, websites,meetings with consumers

Providing consumers with clear and relevant information

Groupe DANONE undertakes to make no claims on nutrition or health benefits without sound scientific evidence

No nutrition or health claims, other than nutritional content information, will be made for ‘purely indulgent’ products.

Nutrition and health claims are backed up by relevant scientific data based on appropriate studies.

To ensure compliance with this commitment, the Groupe has instituted a validation procedure for all nutrition and health information communicated to the public.

Claims on Health and Nutrition must be evidence-based, ethical, and duly validated

Groupe DANONE is committed to responsible advertising where health and nutrition issues are concerned.

In particular, all advertising of Group brands must respect local cultural sensitivities as well as the following principles:

No misleading information on benefitsNo message encouraging overeatingNo message encouraging a sedentary or unhealthy lifestyle

Self-regulation in advertising to protect consumers

Our commitment in terms of Health & Nutrition knowledge and education:

To establish permanent relations with the scientific communityTo support and encourage research in nutrition

To share knowledge with scientists, health professionals, and the publicTo cooperate effectively with authorities and other public bodies

To promote physical activity

At the front line of Health and Nutrition, health professionals help Groupe Danone understand the concerns of consumers and respond effectively.

Example: consultation with40 leading practitioners in 5

countries on fat and fiberparameters for cereal

biscuitsFrance

Finland

CzechRepublicNetherlands

Belgium

Example: Consultation with180 family doctors,

pediatricians, and dieticiansin France on consumption of

sugar and sweeteners

Example: consultation with pediatricians in 9

countries on the diet of young children

Our products are part of the daily life of families around the world. We strive to make full information readily accessible for health professionals.

Example: product monographies for Actimel, Danacol, ... Example: documentation

on Taillefine for patients consulting doctors in

France

Fostering open communication with health professionals

Some Groupe DANONE’s companies have a website to inform local consumers on nutrition

water and hydration information on biscuits

Helping consumers achieve a balanced diet is part of our responsibility (I)

www.dannon.com www.danoneconseils.com www.actimel.com

www.taille-fine-et-moi.com www.evian.fr www.liga.nl

general nutritional advice information on probiotics

weight management

initiated in France in 1995 and then extended to other countries including Spain, Italy, the US and the Netherlands.

Danone call centers manned by dieticians to answer consumer queries

Consumer informational magazines such as Danoé in France, a free magazine with practical nutritional advice, sent to nearly 4 million households each quarter

Consumer brochures on nutritional content of product

for the purpose of: listening to consumers’ needs

and providing nutritional advice

The call number appears on every pack

Helping consumers achieve a balanced diet is part of our responsibility (II)

Danone Nations Cup

8 million children from over 32 countries have already taken part

Represented by Zinedine ZidaneFunds raised are donated to the European LeucodystrophyAssociation

An international football tournament for children, held each year since 2000

Brand programsPrince Trophy in Belgium, a sports event providing useful tips for daily exercise

‘On the move with Prince’ in France (information and tips in leaflets and on labels)

Distribution of leaflets in China

Promoting physical activity for children and teenagers

Danone Institutes are independent bodies bringing together recognized nutrition experts at local levelTheir mission is to:

promote nutrition researchinform and educate health and education professionals

on all subjects related to nutrition adapt scientific documentation on food and nutrition for

the general public

Danone Institutes are funded by local Danone companies

Danone Institutes - embodying our commitment and social responsibility in the field of Health and Nutrition

Japan1998China

1998

Spain1993

Mexico1998

USA1996

Canada1998

France1991

Italy1991

Belgium1991 Germany

1992 Czech Rep.1991 Poland

1992

Israel1998

Russia1998

International2004

1991: the first Danone Institute set up in France Today, a network of 15 Danone Institutes around the world Bringing together some 200 experts

Danone Institutes - promoting research, information andeducation on nutrition

Some 60 local research projects are funded each year

Danone International Prize for Nutrition Created in 2000€ 120,000 a year to reward the achievements of leading researchers

Participation in public-sector projects Example: European Union Childhood Obesity Program

launched at the initiative of Danone in spring 2002

Participation in international scientific events:Example: Pre-congress symposium of the 18th ICN (Durban, RSA)“Nutrition solutions to major public-health problems to optimize growth and development of pre-school children” (2005)

Research and knowledge sharing

Local newsletters, books and CD-ROMsNewsletters: free distribution to 400,000 professionals; 240 issues publishedSeveral million copies distributed

7 continuing education programs for health professionals For students, doctors, journalists, and others 70 training sessions with 5,000 participants

137 specialized workshopsFor students, doctors, journalists and othersMore than 20,000 participants

Information and education for health professionals

72 education programsFor children, teenagers, expectant mothers, elderly people and others

Featuring learners’ kits, games, contests, booklets, radio and TVprograms and other material

For more information: www.danoneinstitute.org

Education for the general public

Probiotics

Probiotics are live microorganisms which, when ingested in adequate amounts, bring a health benefit to the host*.

Probiotics may:• have a positive effect on the intestinal tract resulting from an increase

in bacteria considered as beneficial and a reduction of bacteria consideredas harmful

• and/or accelerate intestinal transit in subjects with slow transit

• and/or strengthen natural defences particularly at the intestinal level

• and/or act on different parameters of the immune system

• and/or increase the nutritional value

• and/or reduce the risk factors for some cancers

*FAO definition (2002) officially adopted by the World Health Organization (WHO)

What are probiotics?

The effects of each probiotic are specific and differ according to conditions of use from one product to another

Health claims have to be validated product by product

ElieMetchnikoffproves the benefits of probioticsscientifically Dr Shirota

introduces Yakult drinks

2004

Alliance betweenDanone andYakult in Probiotics

Isaac Carassofounds theDanone companyin Barcelona …

1919 1929

… and his son Daniel founds theFrench business 10 years later

1935

1907

Isaac Carasso and Dr Shirota - pioneers in probiotics

source: Euromonitor, retail volume, 2004

+4.6%

Total Fresh DairyProduct Category

+12.1%

+7.6%

of which:Probioticyoghurts

of which: Fermented

DairyDrinks

approx. 13% of total market volume

CAGR 98-04

* with specific health benefits

approx. 18% of total market value

Probiotics* - among the fastest growing segments of the FreshDairy Product market

Actimel: approx. € 800 m in 2004

Lactobacillus Casei Defensis Bifidus Essensis

Activia: approx. € 650 m in 2004

Helps to strengthen your natural defenses Helps to regulate your intestinal transit

(1) Yogurts and assimilated products only * with specific health benefits

approx. 20% of Fresh Dairy Product (1) sales in 2004

Danone has built 2 major brands in Probiotics *

Fermented milk drink that comes in 100g bottles

Actimel is a fermented dairy probiotic drinkhelping to strengthen your natural defenses

Contains unique Danone L.Casei defensis strain selected for its probiotic properties

Plain, orange, multifruit, vanilla, strawberry flavors, plus 0.1% fat version (plain, pineapple and raspberry)

What is Actimel ?

Actimel- € 1 billion sales within reach

CAGR 2000-2004 >+30%

Net Turnover € mn

1 2 18 4585

165

250

350

475

620

800

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Actimel - present in some 30 countries

France(1997)

UK(1998)

Canary Is(1995)

.

Portugal(1998)

Italy(1998)

Ireland(1997)

Spain(1996)

. .

Hungary(2001)

Belgium (1994)

Slovakia(2001)

Ukraine(2002)

Austria(1996)

Holland (1995)

Saudi Arabia(2004)

USA(2004)

Germany(1996)

Greece(1998)

Russia(2001)

Israel(1998)Cz Rep

(1999)Argentina(2001)

Poland(2001)

Slovenia(2002)

(2004)FinlandDenmark

(2003)

Uruguay

Sweden Norway

Serbia

Actimel 65%

Yakult 11%

#3 player 6%

Others18%

Source: Euromonitor 2004- Share of market value in probiotic dairy drinks

Top 5 Actimel markets: Spain, Germany, France, the UK and Italy

Market size ≈ $ 1,700 Million

Actimel - a dominant position in Western Europe …

Breakdown of 2004 volumes

Source: Euromonitor

… where it has been top contributor to market growth

% of totalgrowth

49% 7% 39%

+23.9%

Volume CAGR 98-04

Western Europe

Latin America Asia

+5%+4.4%

24% 9% 62%

Segment average+7.6%

Market size ≈ $ 361 Million

•Yakult dominates in Mexico and holds strong positions in Brazil

•Actimel #1 in Argentina

Actimel13%

Yakult 44%

#3 player32%

Others11%

Yakult - the historical leader in Latin America

Source: Euromonitor 2004- Share of market value in probiotic dairy drinks

Yakult’s main markets are Japan, South Korea, Taiwan, Thailand andIndonesia.

Market size≈ $ 3,245 million

Yakult 52%

#3 player1%

Others47%

Pioneer Yakult still dominant in Asia

Source: Euromonitor 2004- Share of market value in probiotic dairy drinks

Source Nielsen 2003

0

10

20

30

40

Korea

Japan

Taiwan

Average consumption in countries where Danone ispresent :

3.2 bottles/ capita / year

PCC(1)/year

(1) PCC: Per Capita Consumption in bottles of 100 g;

Actimel - growth potential still outstanding

ACTIV: Active benefitsVIA: Path in the digestive tract

Contains unique Danone Bifidus Essensisstrain selected for its probiotic properties

Choice of plain, multifruit, fiber, vanilla, mango and soy , plus 0% fat version (plain and fruit)

What is Activia?

Activia is a fermented dairy probiotic producthelping to regulate your transit

UK

Canary Is.

Portugal

Italy

Spain

. .

BelgiumCanada

Mexico

Brazil Austria

Saudi

Hungary

France

Ireland

•W

Japan

SaudiaArabia

Russia

Bulgaria

Slovakia

Romania

Ukraine

Cz Rep

Holland

Activia – present in over 20 countries

Worldwide Activia sales +24% (CAGR 2000-2004)

‘99 ‘00 ‘01 ‘02

Net sales€ millions

‘03 ‘04

650

Sales growth has accelerated since 2000…

In red, countries where Activia has been launched since 2000

UK

Canary Is.

Portugal

Italy

Spain

. .

BelgiumCanada

Mexico

Brazil Austria

Saudi

Hungary

France

Ireland

•W

Japan

SaudiaArabia

Russia

Bulgaria

Slovakia

Rumania

Ukraine

Cz Rep

Holland

… as a result of extension to new markets…

Mature markets

Entry-level markets

Growth markets Fibers

Fruits

New segments/ New occasions

New ingredients

Plain

…and momentum from innovation

Yakult & Danone- combining strengths to accelerateexpansion on the probiotics segment

April 2004: strategic alliance between Yakult and Danone

Exchange of Board Members

A liaison office has been set up:

Global Probiotics Council set up

To promote the cause of probiotics worldwide

Yakult is the leader in the probiotics segment* with 35% of the world market, followed by Danone with 20%

* Total market value: fermented dairy drinks + probiotics yogurt

making dairy probiotics outside Japan the priority

creating value for both parties

to identify opportunities for cooperation (e.g., for R&D or new markets)