Fonterra Launches Infant Healthcare Charity

Media Release

10 October 2008

Fonterra Joins The China Soong Ching Ling Foundation In Establishing The "Fonterra Rural Maternity And Infant Healthcare Community Programme"

Fonterra Co-operative Group Limited and China's Soong Ching Ling Foundation today announced the establishment of a new cooperative charity project - the "Fonterra Rural Maternity and Infant Healthcare Community Programme".

Fonterra will donate USD five million (NZD 8.4 million) to the China Soong Ching Ling Foundation over a period of five years. The funds will be used to provide medical care and advice to pregnant women and mothers of infants in rural communities across China. The goal is to improve the health of women and children, thereby promoting social progress and development.

The programme will operate under the umbrella of the Soong Ching Ling Foundation's successful "Project of Safety of Mothers and Infants". The new project will build maternal and infant community hubs in China's rural and underdeveloped communities, providing them with tools and resources to support prenatal and postnatal care, and also provide information and education to pregnant women and mothers, helping to ensure healthy pregnancies and babies. This will allow families to build a strong future and give infants the brightest future.

The project will include exchange and teaching programmes to help give local health workers, obstetrical and paediatric doctors, and nurses in rural areas new opportunities to learn latest healthcare best practices. The project will encompass rural and underdeveloped areas in China.

Fonterra Chief Executive Officer Andrew Ferrier and China Soong Ching Ling Foundation secretary Li Ning signed the Memorandum of Understanding in Beijing today.

"Fonterra has a 20-year history in China and is strongly committed to China. We are part of Chinese society and want to contribute to the development of the rural areas of China via our effort," said Andrew Ferrier.

Li Ning expressed appreciation of the support Fonterra had committed to helping Chinese society.

The project is the first charity activity launched by Fonterra in China, and is designed to provide long-term benefit to communities across the country.

In support of the company's donation Fonterra's shareholders and staff will also have the opportunity to personally contribute to the Foundation if they would like to.

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About Fonterra

§ Fonterra is the world's largest dairy exporter and the fifth largest dairy company in the world, with annual turnover of NZ$19.5 billion*.

§ As New Zealand's largest and truly multinational business, Fonterra trades in 140 countries.

§ Our portfolio includes dairy ingredients, liquid and powdered milks, cultured foods and yoghurts, butter, cheese and specialty foodservices products.

§ Our brands include Anchor, Anlene, Anmum, Fresh n' Fruity, Mainland, Peters & Brownes, Tip Top, and Chesdale.

For more information: http://www.fonterra.com

* based on the 2007/08 financial year (1 May 2007-31 July 2008)

About China Soong Ching Ling Foundation

The China Soong Ching Ling Foundation was founded in 1982 by Deng Xiaoping, the former president of the People's Republic of China, in memory of Madam Soong Ching Ling, the late honorary president of the People's Republic of China. The foundation was created to continue Madame Song's devotion to supporting the wellbeing of children and building a stronger country. Over the past 26 years since its inception, the foundation, with the support and assistance from within China, from foreign organisations, and from individuals has made notable achievements in such areas as culture, education, health, and science and technology, earning a high reputation at home and abroad.

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