SHAREHOLDERS CHALLENGE KELLOGG OVER GENETICALLY ENGINEERED FOODS

Annual shareholder meeting Friday, April 28, in Battle Creek, MI

Resolution part of largest "Shareholder Movement" since South Africa
Apartheid

Battle Creek, MI -- "Why should Kellogg shareholders take a bullet for
Monsanto?" asks Michael Passoff, of the As You Sow Foundation. The
foundation is part of a shareholder group that has filed a resolution
challenging the company over its use of genetically engineered foods.

The resolution, which will be voted on Friday, asks the company to
remove genetically engineered ingredients from their products until long
term testing has proven them safe. It also proposes an interim step of
labeling products that contain these ingredients.

"Kellogg is putting its reputation and shareholders at risk," says
Passoff. A letter sent to 2000 fellow shareholders, identified
increasing financial, legal, and reputational liabilities to the
company, as scientists raise new questions about the safety of gene
altered foods and crops.

It also points out that using these products limits Kellogg's market
flexibility, as there is no consumer demand for gene altered foods, yet
there is growing consumer backlash against them. "Kellogg derives no
profit from these ingredients," says Passoff, "yet consumer concern is
increasing and Kellogg has become the target of an international boycott
led by Greenpeace."

The shareholders claim that Kellogg's cost of phasing out of these
products is negligible. Food stock is a very minor part of overall
product cost - just pennies per cereal box. The vast majority of
Kellogg's ingredients already come from regular crops, and the farm
industry is improving its ability to segregate and identify between
conventional and genetically engineered crops.

Meanwhile, Kellogg's European operations, along with over 40 of Europe's
largest food companies, are phasing out of genetically engineered
products. U.S. and Canadian companies, including Frito Lay, Seagram,
Heinz, Gerber, and Whole Foods have also pledged to remove these
ingredients. "Kellogg is in a great position to take a leadership role
on this issue and protect its brand name," says Passoff. "Will
management wait until after the damage is done?"

Also sent to shareholders was a report by the As You Sow Foundation,
"Genetically Engineered Foods - Threats to Shareholder Value," which
reviewed key financial indicators of the biotech food industry overall.
The report showed a loss of market share, falling stock prices, an
increase in consumer backlash and negative publicity, major legal and
insurance liabilities, and an increase in government regulation.
"Biotech foods is a industry in turmoil," said Passoff. "By using these
products, Kellogg gets all the problems and no benefits."

Resolution proponents are seeking support from shareholders concerned
about their investment, as well as those concerned about the impacts of
genetically engineered food based on health, environmental and ethical
grounds.

"Genetic engineering is a new, relatively untested technology that can
have enormous impacts on the very fabric of life," said Rev. Gordon
Judd, of the Sisters of Mercy Regional Community of Detroit, who is the
resolution's primary filer. "Like all new technologies it offers
potential and risks. Given the many unanswered questions about this
technology, its widespread application to agriculture and food makes it
a dangerous experiment that is being tested on consumers without their
knowledge or consent." Rev. Judd will speak on behalf of the resolution
at this Friday's shareholder meeting in Battle Creek, MI.

Public health concerns have focused on allergic and toxic reactions,
increased resistance to antibiotics, cancer risks, and reduced
nutritional value. The socio-economic impacts, particularly for the
world's poor, resulting from food monopolies controlled by a few
multinational companies, raise serious social justice issues as well.

Environmental problems already identified include genetic pollution,
creation of "superweeds," and an increase in herbicide use and pesticide
residue. There are also many unknown questions regarding long-term
impacts on soil fertility, food webs and biodiversity.

Kellogg is the latest company to face a proxy vote on this issue. Nearly
two dozen similar resolutions were, or will be, filed with life science
companies, food companies, restaurants, and supermarkets, including:
American Home Products, Archer Daniels Midland, Campbell's Soup, Coca
Cola, ConAgra, General Mills, Kroger, McDonald's, Monsanto, PepsiCo,
Philip Morris (Kraft Foods), Procter & Gamble, Quaker Oats, Safeway, and
Sara Lee.

"Genetically engineered food has provoked the largest shareholder
movement since South African apartheid," said Dr. Ariane van Buren of
the Interfaith Center on Corporate Responsibility (ICCR), which has
filed shareholder resolutions or initiated dialogues with 23 companies
involved in the development and sale of genetically engineered foods.
ICCR is a coalition of over 300 socially responsible investment firms
and religious institutional investors with over $150 billion in combined
assets.

"This issue has drawn more shareholder participation and faster action
than any other topic in the history of corporate social responsibility,"
said van Buren. "In less than half a year, the issue moved from no
shareholder action to 23 different companies in the U.S. and abroad
receiving shareholder proposals from 33 different investor groups."

The Securities and Exchange Commission has ruled that companies may not
omit the resolution and that genetic engineering of food is indeed a
major policy issue for shareholders, and not ordinary company business.
The SEC requirement for a resolution to receive enough votes to be
refiled the following year is 3% for the first year, 6% for the second
year, and 10% the third year.

"Shareholder resolutions can often succeed with a small percentage of
votes," says van Buren. "Successful resolutions are not measured in the
typical electoral sense of receiving a majority vote, but by moving the
company to act on an issue such as apartheid, sweatshops or
environmental protection."