SARA LEE CORPORATION

Sara Lee Corporation

Sara Lee Corporation

Introduction

Sara Lee Corporation is a global consumer-goods company based in Downers Grove, Illinois, USA. It has operations in more than 40 countries and sells its products in over 180 nations worldwide. Its international operations are headquartered in Utrecht, The Netherlands.

Objectives for Improving the Sara Lee Corporation's Internal Business Processes

The first steps of a significant reshaping of its business portfolio that will tighten the company's focus on a smaller number of global branded consumer packaged goods segments. Both acquisitions and dispositions will be used to concentrate the company's resources on three business segments: Food and Beverage, Intimates and Underwear, and Household Products.

Business disposition plans announced today include initial public offerings and subsequent dispositions for Coach, a leading global leather goods business, and PYA/Monarch, the country's fourth-largest, (www.saralee.com) full-service foodservice distributor. In addition, the company announced its intent to sell Champion, a global manufacturer and marketer of high-quality athletic apparel, and the International Fabrics division of Courtaulds. These businesses do not fit with Sara Lee's renewed focus on branded consumer packaged goods segments in which the company can enjoy leading category positions around the world. These dispositions are designed to streamline the company's structure and create increased value for Sara Lee shareholders. (www.saralee.com)

Sara Lee's portfolio shift solidifies its mission to build leadership brands in markets around the world and underscores its focus on products and businesses that:

-- Are global, or have the potential to expand globally

-- Hold leading brand positions (No. 1 or No. 2)

-- Reach consumers through multiple distribution channels

-- Benefit from innovative product development efforts

-- Can achieve "breakthrough economics," which is defined as a cost structure that is not easily matched by the competition.

This reshaping will increase Sara Lee's opportunities to leverage our global presence, marketing expertise, manufacturing scale and proprietary production processes to ...