Tokyo, Japan & Pittsburgh, Pennsylvania
September 9, 2002

H. J. Heinz Company (NYSE:HNZ) and Kagome Company Limited today affirmed their strategic alliance first announced in July 2001. Under the alliance, Heinz, a leading global food company, and Kagome, the leader in ketchup and vegetable juices in Japan, are exploring ways to work together to improve their global operations and product portfolios to accelerate sales growth and reduce operating costs.

The alliance is built on long-term plans and the potential for the two companies to jointly pursue business opportunities globally. Due to current economic and market conditions, however, Heinz and Kagome have decided not to implement their initial project in Japan, the previously announced investments in each other's businesses.

Heinz and Kagome will continue to work together on various global projects under the terms of the agreement. For example, they plan to continue collaborating on projects in tomato seed development and product and packaging innovations.

In August 2002, Heinz and Kagome completed a joint study of the development of a North American fruit/vegetable juice business. As a result of this study, the two companies have agreed to continue their joint effort to commercialize opportunities in this market. As the first step, Kagome on its own will develop and introduce the Kagome brand for vegetable-based drinks in North America. Kagome plans to launch its vegetable drink products next spring.

H. J. Heinz Company is one of the world's leading processors and marketers of high-quality ketchup, condiments, sauces, meals, soups, snacks and infant foods through all retail and foodservice channels. A host of favorite brands, such as Heinz(R) ketchup, Ore-Ida(R) french fries, Boston Market(R) and Smart Ones(R) meals and Plasmon(R) baby food are the growth drivers in Heinz's two strategic global segments: Meal Enhancers and Meals & Snacks. Heinz's 50 companies have number-one or number-two brands in 200 countries, showcased by the Heinz(R) brand, a global consumer icon with US$2.5 billion in annual sales. Fourteen additional brands, each with more than US$100 million in annual sales, generate a further US$2.6 billion. Information on Heinz is available at www.heinz.com. 

Heinz Japan Ltd., a wholly owned subsidiary of H. J. Heinz Company, has been providing various products for both consumers and foodservice businesses since its establishment in 1961. Its product line includes a wide range of cooking sauces (such as Demi Glace Sauce and White Sauce), soups and frozen potatoes and vegetables.

The history of Kagome is the history of the tomato in Japan. Now that the tomato is loved throughout Japan, Kagome is aggressively pursuing the tremendous potential and diversity of both tomatoes and other vegetables, utilizing its strong research and development capabilities, manufacturing expertise, and global procurement resources. With 10 sales offices throughout Japan covering both wholesalers and retail operators, as well as six distribution centers connected by Kagome's own logistics system, Kagome is a strong presence in both Food and Beverages, in both the Institutional & Industrial and Retail markets. With annual sales of over US$1 billion, Kagome is one of the best-known and trusted brands in Japan. Kagome has many No.1 tomato products, including Kagome(R) brand ketchup and tomato sauces. Kagome also has the No.1 position in vegetable-based juice products with its Yasai-Seikatsu(R) brand and its signature tomato juice product with highly renowned Reverse Osmosis technology. Information on KAGOME is available at http://www.kagome.co.jp in Japanese.

Company news release
P2041