Investors Challenge Dean Foods/Horizon Organic Calling Factory Dairy Farms "Organic"

FOR IMMEDIATE RELEASE
03/02/06
Contacts:

Steven Heim, Boston Common Asset Management, 802-223-4627
Mark Kastel, The Cornucopia Institute, 608-625-2042

Investors Challenge Dean Foods' Approach to Organics
Investment in Factory Farms Questioned

NEW YORK: Socially concerned investors have filed a shareholder proposal
asking Dean Foods to report to shareholders how it is responding to
widespread concern that industrial-scale organic dairies, supplying milk for
its Horizon brand, violate consumer trust, seriously jeopardizing share
value.

The shareholder proposal is a by-product of a five-year debate in the
organic industry over the introduction of large-scale factory-style dairy
farms, milking as many as 5,000 cows each. It is the contention of a
growing number of public interest, environmental, and farming groups that
some of these farms are violating current USDA regulations by labeling their
products as organic.

Last year, The Cornucopia Institute, a Wisconsin-based farm policy group,
filed formal complaints with the USDA against three industrial dairies,
including allegations that these mega-farms, in the arid West, were
violating the law by confining their cattle to feedlots and sheds rather
than grazing as the organic regulations require. The dairy farms in
question include one owned by Dean Foods in Idaho and another California
farm shipping milk for distribution under the Horizon label. Because of
inaction by the USDA the Institute is now preparing to seek court
intervention in order to compel the agency to investigate the alleged
improprieties.

"When consumers pay a premium for organic milk, they generally have the
expectation that cows have access to pasture and gain a sizable percentage
of their nutrients from grass," said Steven Heim, director of social
research with Boston Common Asset Management, representing institutional
shareholders in the resolution process. "Besides complying with the law
itself, we question whether Dean's procurement of milk from factory farms
violates consumer trust and jeopardizes the value of its organic brands,"
Heim added. Dean Foods, the nation's largest milk marketer, also became the
largest U.S. marketer of organic dairy products when it acquired the Horizon
Organic, Alta Dena, and Organic Cow of Vermont brands.

The resolution asks the company to appoint an independent committee of the
board to review its policies and procedures for sourcing raw milk for its
organic dairy products, and whether its policies and procedures promote the
spirit as well as the letter of the official rules defining organic dairy
products.

The investor groups also want to know how the company intends to respond to
increasing consumer and media criticism, and whether a proposed $10 million
investment in an additional large-scale dairy farm will mitigate or
exacerbate the criticism.

Dean Foods, whose core business has been somewhat stagnant in recent years,
has touted its investments in the organic milk labels and the country's
leading soy milk brand, Silk, as vehicles to make its stock more attractive
on Wall Street.

"We are concerned that Dean Foods' lack of transparency to its shareholders
betrays a similar attitude toward its core consumers, particularly consumers
of its Horizon brand products. 2000 to 5000 cow industrial dairies are
antithetical to the concept of organic farming, which supports family-scale
production with sound environmental policies," said Daniel Stranahan of the
Needmor Fund, another investor-sponsor of the resolution.

Dean Foods responded to this shareholder proposal by having its lawyers file
a formal protest with the U.S. Securities and Exchange Commission (SEC),
asking for permission to omit it from Dean¹s 2006 proxy statement on a
series of legal technicalities. Their principle objection is that where the
company purchases or produces its milk is within the sole purview of its
management, and shareholders have no legal right to raise questions of this
nature. A SEC decision on the company¹s protest is expected soon.

The investors contend that in light of the controversy, the company¹s milk
procurement practices have become a legitimate policy concern of
shareholders and could have a significant negative effect on consumer trust
in the organic label. The negative press has already led to some retailers
dropping the Horizon brand. "It is very unfortunate that instead of
addressing the core concerns articulated in this shareholder resolution,
that the company has instead decided to invest its resources in legal
maneuvers to prevent its investors from voting on this resolution," said
Margaret Weber, Coordinator of Corporate Responsibility with the Adrian
Dominican Sisters.

Leslie Lowe, director of the environment program at the Interfaith Center
for Corporate Responsibility in New York, said, ³Dean Foods has an excellent
opportunity to return value to its shareholders through its investments in
the organic industry. But they must respect the ethical beliefs of their
organic customers, a very loyal and sophisticated market segment. Otherwise
these investments could end up damaging their brand and costing investors
dearly."

- 30 -