H.J. HEINZ COMPANY ENTERS JOINT VENTURE IN SOUTH AFRICA

PITTSBURGH, Sept. 25 /PRNewswire/ -- H.J. Heinz Company (NYSE: HNZ) today confirmed the formation of a joint venture between Heinz and Sentraalwes Co-operative, a farmers' co-operative based in Klerksdorp, South Africa. The joint venture, in which Heinz holds the majority share, will be known as Heinz Frozen Foods (Pty) Ltd. It is expected to be the first in a series of transactions.

Heinz also announced the formation of Heinz South Africa (Pty) Ltd, which will be the holding company for Heinz investments in Southern Africa. Rory W. Beattie, area director for South Africa, will serve as chairman of Heinz South Africa.

Heinz Chairman, President and Chief Executive Officer Anthony J.F. O'Reilly said: "The formation of Heinz South Africa will provide us with growth opportunities as we make further investments in a variety of food categories where Heinz has world-class leadership. Heinz's operations are highlighted in Africa by our successful Zimbabwean business. South Africa, with a population of 42 million and where our brand name has remained popular among consumers, is a promising market for Heinz."

The joint venture will make Heinz a leading processor of frozen chips in South Africa for grocery and foodservice customers. The affiliate's product lines are expected to expand with the addition of new units and businesses. Heinz is the biggest producer of these products in New Zealand and the United States.

Heinz is the largest food company in neighboring Zimbabwe, with Olivine Industries with more than 1,500 employees. A joint venture with the Zimbabwean government, Olivine produces vegetable oils, margarines, soaps and Heinz-branded products, such as canned beans, vegetables and soup.

Heinz also has an edible oils and soap business in neighboring Botswana. In Ghana, its StarKist affiliate operates a tuna cannery.

/delval/

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/CONTACT: D. Edward I. Smyth, VP - Corp. Affairs, 412-456-5780, or Debora S. Foster, Gen. Mgr. - Corp. Communications, 412-456-5778, both of H.J. Heinz; or John E. Kennedy, or L. Michael Kelly, Jr., 412-456-3586, or 412-456-3840, both of Ketchum Public Relations, for H.J. Heinz/

(HNZ)

CO: H.J. Heinz Company; Sentraalwes Co-operative; Heinz Frozen Foods

(Pty) Ltd.; Heinz South Africa ST: Pennsylvania IN: FOD SU: JVN

CD -- PG003 -- 2022 09/25/95 08:33 EDT