1st Quarter Results

    Sara Lee Corporation
Media:
Julie Ketay, 312-558-8727
Analysts:
Aaron Hoffman, 312-558-8739

    Sara Lee Reports Increased Sales for First Quarter Fiscal 2004

       Company exceeded earnings outlook range and EPS consensus
        for the quarter; Cash flow from operations increased by
              $145 million to record first-quarter level

Sara Lee Corporation (NYSE:SLE) today reported that net sales for the
first quarter of fiscal 2004, ending Sept. 27, 2003, increased 3% to
$4.7 billion, compared to $4.5 billion in the prior year's quarter.
The company reported increased sales for four of its five lines of
business - Meats, Bakery, Beverage and Household Products - offset, in
part, by lower sales in the Intimates and Underwear operations.
Revenues in the quarter benefited from base business growth in the
Meats, Beverage and Household Products operations as well as favorable
foreign currency exchange rates.

Unit volumes were up in the company's Meats and Household Products
operations, flat in the Beverage business and down in Bakery and
Intimates and Underwear, resulting in a 3% decline in corporate unit
volumes during the quarter.

The company reported diluted earnings per share (EPS) for the first
quarter of $.29 compared to $.38 in the prior year. Sara Lee exceeded
the First Call analyst estimate consensus of $.26 for the quarter as
well as the company's EPS forecast range of $.23 to $.28.

Cash flow from operations grew $145 million to $319 million, a record
first-quarter level for the company. The increase was driven by a
significant decrease in the use of funds for working capital.

Total media advertising and promotion (MAP) spending rose 7% in the
quarter, including a 10% increase in media advertising and a 4%
increase in other advertising and promotions. Higher spending was
reported in Bakery, Household Products and Intimates and Underwear.

"We are pleased with the sales growth in Sara Lee's Meats, Bakery,
Beverage and Household Products lines of business, with innovative new
products such as Hillshire Farm Deli Select Ultra Thin sliced meats;
Sara Lee fresh breads, buns and rolls; the Senseo coffee system; and
Sanex deodorants leading the way," said C. Steven McMillan, chairman,
president and chief executive officer of Sara Lee Corporation. "In
addition, we are beginning to see the benefits of recent restructuring
initiatives at Bakery, and we anticipate ongoing performance
improvements for that business. In Intimates and Underwear, sales were
lower as our retail customers continue to reduce inventory levels
compared to a very robust first quarter of last year, but we expect
inventories to normalize and our sales to increase in the coming six
to nine months.

"We continued to generate strong cash flow in the first quarter. In
addition to a significant increase in cash from operations, capital
expenditures declined approximately $40 million, and we received $73
million from the sale of our minority interest in Johnsonville Foods.
We used these funds to repay debt and return value to shareholders in
the form of increased dividends and share repurchases," added
McMillan.

Performance Review

A performance review for each line of business follows. All dollar
amounts are in millions. Unit volumes exclude acquisitions and
divestitures.

MEATS

Sara Lee Meats is a leader in the branded packaged meats business in
the United States, Europe and Mexico.

First Quarter Highlights

-- Global unit volumes increased on strength in U.S. retail and deli

-- European meats business increased operating segment income and
margins

-- Supply chain improvements continued to produce cost savings

-- Strong new product performance contributed to sales

-- Higher raw material costs negatively affected overall margins

                                                               
                                                        Dollar Percent
                                          First Quarter Change Change
                                          ----------------------------
In millions                                2004   2003
----------------------------------------------------------------------

Net sales                                 $ 995  $ 923   $ 72    7.8 %
----------------------------------------------------------------------
Increase/(decrease) in net sales from:
  Changes in foreign currency exchange
   rates                                  $   -  $ (28)  $ 28
---------------------------------------------------------------


----------------------------------------------------------------------

Operating segment income                  $ 101  $  90   $ 11   13.3 %
----------------------------------------------------------------------
Increase / (decrease) in operating segment
income from:
  Changes in foreign currency exchange
   rates                                  $   -  $  (4)  $  4
  Exit activities and business dispositions   5      1      4


Unit volume change vs. 2003

                        First
                       Quarter
                        2004
                       -------
Global unit volume       1 %
   U.S.                  2 %
       Retail            2 %
       Deli             11 %
       Foodservice      (2)%
   Europe               (1)%
   Mexico                1 %


Overview

-- Sales for the quarter rose 8% driven by a 2% increase in U.S. unit
volumes, higher net product prices resulting from increased raw
material costs, favorable product mix and the impact of the
strengthening of the euro.

-- Operating segment income rose 13%, resulting from increased sales,
favorable currency exchange rates, cost savings from supply chain
improvements and a gain on the disposition of a minority ownership
position; these gains were partially offset by the impact of higher
raw material costs, increased pension expense and restructuring
activities.

-- MAP spending fell 7% in the quarter, due primarily to the timing of
several media campaigns.

Retail

-- U.S. retail unit volumes increased 2%, driven by growth in hot dogs
and corn dogs combined with strong performance by several new products
including Hillshire Farm Deli Select Ultra Thin sliced meats, Jimmy
Dean Fresh Taste. Fast! pre-cooked bacon and sausages and the new
Jimmy Dean breakfast sandwiches.

-- Deli unit volumes grew 11%, driven by increased distribution levels
and successful marketing campaigns for the Sara Lee deli brand.

-- Internationally, the European meats business showed both sales and
profit growth in the quarter, driven by the strength of the euro and
lower raw material costs. In Mexico, unit volumes were up due to an
increased number of direct-store delivery (DSD) routes, but profits
fell as a result of higher raw material costs and increased selling
and distribution expenses.

Foodservice

-- Foodservice unit volumes in the United States were down 2%, but
sales and profits were up as a result of improved operational
performance.

BAKERY

Sara Lee Bakery is a leader in the U.S. fresh baked goods market, and
holds important positions in the U.S. and European refrigerated dough
and European fresh bread markets. Sara Lee Bakery also enjoys leading
positions in frozen baked goods in both the United States and
Australia.

First Quarter Highlights

-- Net sales rose, driven by new products and currency

-- Sara Lee brand sales increased by more than 50%

-- Cost savings initiatives continued

                                                              
                                                        Dollar Percent
                                          First Quarter Change Change
                                          ----------------------------
In millions                                2004   2003
----------------------------------------------------------------------

Net sales                                 $ 836  $ 822   $ 14   1.7 %
----------------------------------------------------------------------
Increase/(decrease) in net sales from:
  Changes in foreign currency exchange
   rates                                  $   -  $ (21)  $ 21
--------------------------------------------------------------


----------------------------------------------------------------------

Operating segment income                  $  40  $  45   $ (5) (10.6)%
----------------------------------------------------------------------
Increase/(decrease) in operating segment
income from:
  Changes in foreign currency exchange
   rates                                   $  -  $  (2)  $  2
  Exit activities and business
   dispositions                              (3)     1     (4)
  Accelerated depreciation                   (1)     -     (1)


Unit volume change vs. 2003

                        First
                       Quarter
                        2004
                       -------
Global unit volume      (2)%
U.S.                    (3)%
    Fresh baked goods   (3)%
    Refrigerated dough  (1)%
    Frozen retail       17 %
    Foodservice        (11)%
Europe                  (1)%
    Fresh                0 %
    Refrigerated        (5)%
Australia               10 %


Overview

-- Revenues for the quarter rose 2% as a result of new product
performance, strong sales in the Spanish fresh bread division, frozen
retail baked goods and refrigerated dough in the United States, and
favorable currency trends. Sales increases were partially offset by
continued softness at U.S. fresh bakery and bakery foodservice.

-- Operating segment income declined primarily due to restructuring
actions taken to continue to reduce the complexity of the U.S. fresh
bakery business. The remaining profit decline was attributable to
higher commodity, labor and pension costs and increased marketing
spending, partially offset by foreign currency and benefits from
restructuring activities implemented in the second half of fiscal
2003.

-- Sara Lee Bakery continued to increase investment behind its brands
with media advertising up 12% and total MAP spending up 25% for the
quarter. Sara Lee brand sales rose by more than 50% in the United
States, driven by the success of fresh breads, buns and rolls.

Fresh Baked Goods

-- Strong sales growth for fresh bakery products sold under the Sara
Lee brand in the United States was offset by ongoing softness in
regional fresh bread brands. The company will continue to introduce
innovative Sara Lee branded products, increase its focus on sales
execution and examine ways to reduce the complexity of its operations.

-- European baking showed significant sales and profit growth driven
by the ongoing success of Bimbo branded crustless breads in Spain and
Portugal.

Refrigerated Dough

-- U.S. refrigerated dough reported increased sales and operating
segment income driven by manufacturing cost-reduction programs and
select price increases to cover higher raw material costs.

-- The European refrigerated dough business was negatively affected by
an extremely hot summer in Europe.

Frozen Baked Goods

-- Unit volumes for U.S. frozen baked goods increased 17% driven by
strength in Sara Lee's heritage products - Danish, cheesecake and
pound cake - and very strong in-store bakery pie sales.

-- Sales and profits were up significantly for the frozen business in
Australia, driven by currency and increased ice cream sales.

-- Results for the foodservice bakery business in the United States
declined primarily due to lower sales to key customers.

BEVERAGE

Sara Lee Beverage is one of the largest producers of roast and ground
coffee in the world, competing in both retail and out-of-home
categories. Its primary markets are Europe, the United States and
Brazil.

First Quarter Highlights

-- Sales and operating segment income increased in the U.S. retail
coffee business

-- Senseo growth continued in Europe

-- Revenues increased in Brazil

-- Strong euro contributed to sales and operating segment income
increases

                                                               
                                                        Dollar Percent
                                          First Quarter Change Change
                                          ----------------------------
In millions                                2004   2003
----------------------------------------------------------------------

Net sales                                 $ 692  $ 619   $ 73   11.8 %
----------------------------------------------------------------------
Increase/(decrease) in net sales from:
  Changes in foreign currency exchange
   rates                                  $   -  $ (52)  $ 52
---------------------------------------------------------------

----------------------------------------------------------------------

Operating segment income                  $  98  $  86   $ 12   13.1 %
----------------------------------------------------------------------
Increase/(decrease) in operating segment
income from:
  Changes in foreign currency exchange
   rates                                  $   -  $ (11)  $ 11


Unit volume change vs. 2003

                        First
                       Quarter
                        2004
                       -------
Global unit volume       0 %
Retail                   0 %
   Europe                1 %
   U.S.                 18 %
   Brazil               (9)%
Out-of-home             (1)%
   Europe               (5)%
   U.S.                  0 %


Overview

-- The strong euro increased sales and operating segment income.
Higher coffee prices and an improved product mix also added to sales,
while the profit gain resulting from the strengthening of the euro was
partially offset by higher green coffee costs and pension costs.

-- MAP spending for the Beverage business fell 15% in the quarter due
to timing differences compared to last year and reduced levels of
promotional spending for Senseo.

Retail

-- European retail coffee sales and margins were primarily driven by
Senseo in the quarter. Senseo Choice, three new coffee flavors under
the names Milano, Vienna and Rio de Janeiro, was launched in the
Netherlands at the end of the quarter. Senseo's innovative in-home
coffee maker and coffee pads will launch in Denmark in the second
quarter of fiscal 2004.

-- Unit volumes increased for all major U.S. retail coffee brands -
Hills Bros, Chock full o'Nuts and MJB - as market shares grew on the
strength of more effective promotions. Sales and operating segment
income in this business rose as a result of the higher volumes plus a
price increase implemented in the second half of fiscal 2003 to cover
higher green coffee costs.

-- In Brazil, several price increases were taken in fiscal 2003 and in
the first quarter of fiscal 2004 to cover higher green coffee, freight
and energy costs. Sales and operating segment income rose during the
quarter, although the price increases negatively affected unit
volumes.

Out-of-home

-- Unit volumes for Cafitesse, the liquid coffee concentrate system,
increased in both the United States and Europe, with double-digit
gains in the U.S. foodservice market. Traditional roast and ground
foodservice unit volumes declined, due to hot weather in Europe and
lower same-customer-sales and price competition in the United States.

-- Cafitesse 700, the latest addition to the Cafitesse coffee system
line that offers 12 coffee varieties, started its rollout during the
quarter with launches in the Netherlands, Belgium and Germany.

HOUSEHOLD PRODUCTS

Household Products is Sara Lee's most global business, with important
positions in four core product categories: body care, air care, shoe
care and insecticides. This line of business also includes Direct
Selling, which sells directly to consumers through an independent
sales force in countries around the world.

First Quarter Highlights

-- Core unit volumes grew 5%

-- Sales rose in body care and insecticides

-- Direct Selling sales rose significantly in all major markets

                                                               
                                                        Dollar Percent
                                          First Quarter Change Change
                                          ----------------------------
In millions                                2004   2003
----------------------------------------------------------------------

Net sales                                 $ 540  $ 478   $ 62   12.9 %
----------------------------------------------------------------------
Increase/(decrease) in net sales from:
  Changes in foreign currency exchange
   rates                                  $   -  $ (37)  $ 37
---------------------------------------------------------------

----------------------------------------------------------------------

Operating segment income                  $  67  $  72   $ (5)  (6.4)%
----------------------------------------------------------------------
Increase/(decrease) in operating segment
income from:
  Changes in foreign currency exchange
   rates                                  $   -  $  (4)  $  4
  Exit activities and business dispositions  (2)     -     (2)


Unit volume change vs. 2003

                        First
                       Quarter
                        2004
                       -------
Global unit volume       5 %
   Body Care            10 %
   Air Care             (3)%
   Shoe Care            (9)%
   Insecticides         20 %


Overview

-- Overall unit volume growth of 5% in the four core Household and
Body Care categories was driven by good performance in body care and
insecticides, partially offset by volume weakness in shoe care and air
care.

-- Operating segment income fell, driven by increased marketing
spending, higher pension costs and investments in Direct Selling in
Brazil.

-- Direct Selling continued the momentum started in the fourth quarter
of fiscal 2003 with sales growth in Australia, Mexico, Argentina, the
Philippines, Japan and South Africa.

-- Media advertising for Household Products increased 15% in the
quarter due to support for the international launch of Kiwi Fresh
Force shoe freshener, increased Sanex advertising and seasonal
campaigns for insecticides.

Household and Body Care

-- Body care sales growth was driven by the Sanex brand's strong
performance, particularly Sanex deodorants in the U.K., and other bath
and shower products across Europe.

-- Sales and unit volumes for the local bath and shower brands
Duschdas (Germany), Badedas (Italy) and Radox (U.K., Australia) grew
during the quarter, as a result of increased promotional spending as
well as the hot summer in Europe.

-- Growth for Ambi Pur air fresheners in Asia, fueled by growth in
Malaysia and Indonesia plus the launch of Ambi Pur Car in India and
China, could not offset sales declines in the United States and
Europe. On the new products front, Ambi Pur fragrance burner was
launched in the U.K. and France in early October.

-- Shoe care unit volumes declined due to trade inventory reductions
in the United States and the impact of counterfeit products in Africa.
However, Kiwi Fresh Force shoe freshener has been successfully
introduced in 11 countries and is expected to meet its sales
expectations for the year.

-- The insecticides category benefited from the warm weather in Europe
and significant sales growth in India.

Direct Selling

-- Sales growth in Direct Selling resulted from performance
improvements across the business, including an increase in the number
of independent sales representatives in various countries, successful
marketing programs in Mexico, further recovery of the business in
Argentina, new product launches in Australia and sales momentum at
start-up operations in Brazil.

-- Operating segment income in Direct Selling fell as a result of
increased selling, general and administrative costs, and continued
investments in Brazil.

INTIMATES AND UNDERWEAR

Sara Lee's Intimates and Underwear line of business includes intimate
apparel, knit products and legwear marketed under some of the most
powerful brand names in the apparel industry. Sara Lee holds leading
share positions in these categories in both North America and Europe.

First Quarter Highlights

-- Sales, unit volumes and operating segment income declined in all
three major product categories

-- A very strong quarter last year and retail inventory reductions
this year made for difficult comparisons in this quarter

-- New products performed well, supported by increased media
advertising spending

-- New business model continued to reduce manufacturing costs

                                                        Dollar Percent
                                          First Quarter Change  Change
                                          ----------------------------
In millions                                2004   2003
----------------------------------------------------------------------

Net sales                                $1,604 $1,693  $ (89)  (5.3)%
----------------------------------------------------------------------
Increase/(decrease) in net sales from:
  Changes in foreign currency exchange
   rates                                 $    - $  (47) $  47
--------------------------------------------------------------

----------------------------------------------------------------------

Operating segment income                 $  127 $  213  $ (86) (40.6)%
----------------------------------------------------------------------
Increase/(decrease) in operating
 segment income from:
  Changes in foreign currency exchange
   rates                                 $    - $   (4) $   4
  Exit activities and business
   dispositions                              (4)     7    (11)


Unit volume change vs. 2003

                           First
                          Quarter
                           2004
                          -------
Global unit volume         (7)%
Intimate Apparel - Global  (7)%
   U.S.                   (11)%
   Europe                  (2)%
 Knit Products - Global    (7)%
   U.S.                    (6)%
   Europe                 (18)%
Legwear - Global           (7)%
   Sheer Hosiery - Global (17)%
   Socks - Global           5 %


Overview

-- First quarter sales declined 5% and global unit volumes fell 7%.
The declines were primarily the result of significant year-over-year
reductions in inventory levels for intimate apparel and underwear at
U.S. retailers, a further decline in the worldwide sheer hosiery
market and price decreases in the U.S. printables market.

-- Operating segment income declined 41% due to lower unit volumes,
increased cotton costs, higher pension costs, increased MAP spending
and restructuring activities.

-- MAP spending increased 18%, including a 48% rise in media
advertising.

-- Higher costs were partially offset by manufacturing savings.

Intimate Apparel

-- Global intimate apparel unit volumes fell 7%, reflecting a
reduction in inventory levels in the U.S. mid-tier and department
store channels compared to last year's quarter when inventories at
these stores strongly increased. In Europe, Dim (France) and
Courtaulds (U.K.) showed strong volume growth, which more than offset
unit volume weakness in the Italian intimates business.

-- The Playtex Thank Goodness It Fits half-size bra line was
successfully introduced in the United States, aided by strong media
advertising support in the quarter.

-- The European intimates businesses continued to support their most
important brands with higher MAP spending. In France, the Unno brand
was launched with an eye-catching television advertising campaign, and
advertising support was provided for Playtex Magic Feeling and Dim
Sexy Pockets.

Knit Products

-- U.S. underwear unit volumes, sales and profits declined as key mass
retailers continued to reduce the amount of inventory supporting their
businesses compared to year-ago levels.

-- In the women's underwear segment, Hanes Her Way Body Creations
panties continued to perform well, helped by new packaging and a
television advertising campaign. Hanes Authentic, a new underwear line
aimed at younger women that was launched at the end of last fiscal
year, showed good initial results, and Hanes Her Way at Home sleepwear
also performed well.

-- Non-U.S. underwear unit volumes and sales were down. However,
underwear profits outside the United States rose, driven by strong
results for Dim Men and Abanderado.

-- U.S. activewear unit volumes decreased in the quarter, reflecting
lower unit volumes in Printables and Casualwear, partially offset by
stronger volumes for Champion. Sales and profits in Printables'
T-shirt business fell as a result of strong price competition in the
category.

Legwear

-- Worldwide unit volume for legwear fell 7%, combining a 17% decline
for sheer hosiery with a 5% unit volume increase for socks.

-- In the sheer hosiery category, the lower unit volume reflects
continued category declines in major markets, exacerbated by an
unusually warm summer in Europe.

-- Unit volume growth for socks was driven by strong gains in the U.S.
mass retail channel. U.S. socks unit volume increased 8% over a strong
first quarter of fiscal 2003 when the business posted a 25% increase
over the first quarter of fiscal 2002.

Net Interest Expense, General Corporate Expenses, Tax Rate and Share
Repurchase

Net interest expense was $49 million for the first quarter, compared
with $48 million in last year's first quarter. General corporate
expenses increased 39% due to higher benefit and other administrative
costs. The effective tax rate was 18% for both the first quarter of
fiscal 2004 and fiscal 2003. During the first quarter of fiscal 2004,
Sara Lee Corporation repurchased more than 13 million shares of its
common stock at an average price of $19.01 per share. Approximately 39
million shares remain authorized by the Board of Directors for
repurchase.

Exit and Business Disposition Activities

During the first quarter of fiscal 2004, the corporation recognized $4
million of pretax costs related to exit and business disposition
activities as compared to $9 million of pretax income from these
activities in the first quarter of fiscal 2003. The $4 million of
costs in the first quarter of fiscal 2004 consists of $9 million of
income related to the disposition of businesses and investments and
$13 million of costs related to exit costs. The $9 million of income
related to the disposition of businesses and investments primarily
consists of a $13 million gain resulting from the disposition of a
minority ownership position in Johnsonville Foods Inc., offset by
costs associated with the anticipated disposition of a component of a
business. The $13 million of exit costs consists of $8 million of
severance and $5 million of anticipated losses on the disposal of
certain fixed assets. The exit and business disposition activities
recognized in the first quarter of fiscal 2004 had no net impact on
the diluted EPS reported in the quarter.

The $9 million of income in the first quarter of fiscal 2003 resulted
from the corporation completing various business reshaping actions for
amounts more favorable than previously estimated. As a result of these
actions, net income and diluted EPS increased by $7 million and $.01,
respectively.

Outlook

Sara Lee's management currently expects diluted EPS for the second
quarter of fiscal 2004 to fall within a range of $.35 to $.40,
compared to $.42 in the year-ago period. Full-year fiscal 2004 diluted
EPS are expected to be in a range of $1.51 to $1.61, compared to $1.50
in fiscal 2003.

Management expects the challenging market conditions that affected
operations in the first quarter of fiscal 2004, including higher raw
material costs, competitive pricing in printables and weak foodservice
markets, to continue into the second quarter of this year. For full
fiscal 2004, however, four of the company's five lines of business -
Meats, Bakery, Beverage and Household Products - are expected to show
good gains in operating segment income, driven by higher sales from
new product activity, select price increases to cover higher raw
material costs and an improved economic and retail environment.
Intimates and Underwear operating segment income will be down for the
year, although improving on a year-over-year basis in the second half
as new product activity and a better market environment drive
performance. At current exchange rates, primarily relating to the
euro, foreign currency translations are expected to have a positive
impact on fiscal 2004 results.

Webcast

Sara Lee Corporation's review of first quarter results for fiscal 2004
will be broadcast live via the Internet today at 9 a.m. CDT. During
the webcast, the company will discuss first quarter results and
provide an outlook for the second quarter and full fiscal year. The
live webcast can be accessed at www.saralee.com, and is anticipated to
conclude by 10 a.m. CDT. For people who are unable to listen to the
webcast live, the earnings review will be available two hours
following the completion of the webcast in the Investors section of
the Sara Lee corporate Web site until Thursday, Nov. 6, 2003.

Forward-looking statements

This news release contains certain forward-looking statements
concerning Sara Lee's expected financial results and cost savings for
the second quarter and full fiscal year 2004. These forward-looking
statements are based on currently available competitive, financial and
economic data and management's views and assumptions regarding future
events. Such forward-looking statements are inherently uncertain, and
investors must recognize that actual results may differ from those
expressed or implied in the forward-looking statements. Consequently,
the corporation wishes to caution readers not to place undue reliance
on any forward-looking statements. Among the factors that could cause
Sara Lee's actual results to differ from such forward-looking
statements are the following: (i) impacts on reported earnings from
fluctuations in foreign currency exchange rates - particularly the
euro - given Sara Lee's significant concentration of business in
Western Europe; (ii) significant competitive activity, including
advertising, promotional and price competition, and changes in
consumer demand for Sara Lee's products; (iii) a significant reduction
in Sara Lee's business with any of its major customers, such as
Wal-Mart, the corporation's largest customer, including a reduction
resulting from adverse developments in the customer's business; (iv)
the impact of declines in equity markets on the funded status and
annual expense of the corporation's defined benefit pension plans and
the impact of such market declines on consumer spending; (v) Sara
Lee's ability to continue to source production and conduct
manufacturing and selling operations in various countries due to
changing business conditions, the financial condition of suppliers and
political environments; (vi) Sara Lee's ability to achieve planned
cash flows from capital expenditures and acquisitions, particularly
Earthgrains, and the impact of changing interest rates and the cost of
capital on the discounted value of those planned cash flows; (vii)
Sara Lee's ability to realize the estimated savings and productivity
improvements associated with prior restructuring initiatives; (viii)
fluctuations in the cost and availability of various raw materials;
(ix) the impact of various food safety issues on the consumption of
meat products in the United States and parts of Europe; (x) credit and
other business risks associated with customers operating in a highly
competitive retail environment; and (xi) inherent risks in the
marketplace associated with new product introductions, including
uncertainties about trade and consumer acceptance. In addition, the
corporation's results may also be affected by general factors, such as
economic conditions, political developments, interest and inflation
rates, accounting standards, taxes, and laws and regulations in
markets where the corporation competes.

We have provided additional information in our Form 10-K for fiscal
2003, which readers are encouraged to review, concerning factors that
could cause actual results to differ materially from those in the
forward-looking statements. Sara Lee undertakes no obligation to
publicly update any forward-looking statements, whether as a result of
new information, future events or otherwise.

Company Description

Sara Lee Corporation (www.saralee.com) is one of the world's leading
branded consumer packaged goods companies, selling its products in
nearly 200 countries. The company has three global businesses - Food
and Beverage, Intimates and Underwear, and Household Products -
through which it manufactures and markets products of exceptional
quality and value under leading, well-known brand names such as Sara
Lee, Earth Grains, Jimmy Dean, Douwe Egberts, Chock full o' Nuts,
Hanes, Playtex, Bali, Dim, Kiwi, Ambi Pur and Sanex.

Consolidated Statements of Income          Sara Lee Corporation (NYSE)
                                           ---------------------------

(in millions except per share amounts)
----------------------------------------------------------------------

                                             Thirteen Weeks Ended
                                        ------------------------------
                                        Sept. 27,   Sept. 28,  Percent
                                          2003        2002     Change
                                        ---------- ---------- --------

Net sales                               $  4,666   $  4,534     2.9 %
                                        ---------- ----------

Cost of sales                              2,868      2,752
Selling, general and administrative
 expenses                                  1,465      1,366
(Income) charges for exit activities
 and business dispositions                     4         (9)
Interest expense                              70         67
Interest income                              (21)       (19)
                                        ---------- ----------
                                           4,386      4,157
                                        ---------- ----------

Income before income taxes                   280        377   (25.7)
Income taxes                                  50         69
                                        ---------- ----------
                                                                 
Net income                              $    230   $    308   (25.4)
                                        ========== ==========

Net income per common share
  Basic                                 $   0.29   $   0.39   (25.6)
                                        ========== ==========
  Diluted                               $   0.29   $   0.38   (23.7)
                                        ========== ==========

Average shares outstanding
  Basic                                      780        782
                                        ========== ==========
  Diluted                                    804        814
                                        ========== ==========


See accompanying note to financial statements.



Operating Results by Industry Segment      Sara Lee Corporation (NYSE)
                                           ---------------------------

(in millions)                   Thirteen Weeks Ended
----------------------------------------------------------------------
                     Sales                   Operating Income
              -------------------          -------------------
              Sept. 27, Sept. 28, Percent  Sept. 27, Sept. 28, Percent
                2003      2002    Change     2003      2002    Change
              --------- --------- -------  --------- --------- -------
Sara Lee Meats $  995    $  923     7.8 %   $  101    $   90    13.3 %
Sara Lee Bakery   836       822     1.7         40        45   (10.6)
Beverage          692       619    11.8         98        86    13.1
Household  
 Products         540       478    12.9         67        72    (6.4)
Intimates and 
 Underwear      1,604     1,693    (5.3)       127       213   (40.6)
              --------- --------- -------  --------- --------- -------
   Total sales 
    and operating 
    segment 
    income      4,667     4,535     2.9        433       506   (14.4)
Intersegment 
 sales             (1)       (1)   13.4         --        --      --
Amortization of 
 identifiable 
 intangibles       --        --      --        (25)      (24)   (5.5)
General corporate 
 expenses          --        --      --        (79)      (57)  (39.4)
              --------- --------- -------  --------- --------- -------
Total net sales 
 and operating 
 income         4,666     4,534     2.9        329       425   (22.6)
Net interest 
 expense           --        --      --        (49)      (48)   (1.1)
              --------- --------- -------  --------- --------- -------

Net sales and 
 income before 
 income taxes  $4,666    $4,534     2.9 %   $  280    $  377   (25.7)%
              ========= ========= =======  ========= ========= =======


See accompanying note to financial statements.



                                           Sara Lee Corporation (NYSE)
                                           ---------------------------

Consolidated Balance Sheets

(in millions)
----------------------------------------------------------------------
                                           Sept. 27,       June 28,
                                             2003            2003
                                          -----------    -----------
ASSETS
Cash and equivalents                        $   121        $   942
Trade accounts receivable                     1,962          1,928
Inventories                                   2,759          2,704
Other current assets                            388            378
Net assets held for sale                          1              1
                                          -----------    -----------

  Total current assets                        5,231          5,953

Other noncurrent assets                         237            284
Property, net                                 3,282          3,350
Trademarks and other identifiable
 intangibles, net                             2,086          2,110
Goodwill                                      3,388          3,387
                                          -----------    -----------

                                            $14,224        $15,084
                                          ===========    ===========

LIABILITIES AND EQUITY
Notes payable                               $   223        $    75
Accounts payable                              1,224          1,286
Accrued liabilities                           2,854          2,834
Current maturities of long-term debt          1,005          1,004
                                          -----------    -----------

  Total current liabilities                   5,306          5,199

Long-term debt                                4,544          5,157
Deferred income taxes                           237            200
Pension obligation                            1,178          1,178
Other noncurrent liabilities                    940            901
Minority interest in subsidiaries                61            358
Preferred stock                                  --             39
Common stockholders' equity                   1,958          2,052
                                          -----------    -----------

                                            $14,224        $15,084
                                          ===========    ===========


See accompanying note to financial statements.



                     Note to Financial Statements

1.) Restructuring and Business Disposition Activities

    During the first quarter of fiscal 2004, the corporation
    recognized $4 million of pretax costs related to exit and business
    disposition activities as compared to $9 million of pretax income
    from these activities in the first quarter of fiscal 2003. The $4
    million of costs in the first quarter of fiscal 2004 consists of
    $9 million of income related to the disposition of businesses and
    investments and $13 million of costs related to exit costs. The $9
    million of income related to the disposition of businesses and
    investments primarily consists of a $13 million gain resulting
    from the disposition of a minority ownership position in
    Johnsonville Foods Inc., offset by costs associated with the
    anticipated disposition of a component of a business. The $13
    million of exit costs consists of $8 million of severance and $5
    million of anticipated losses on the disposal of certain fixed
    assets. The exit and business disposition activities recognized in
    the first quarter of fiscal 2004 had no net impact on the diluted
    EPS reported in the quarter.

    The $9 million of income in the first quarter of fiscal 2003
    resulted from the corporation completing various business
    reshaping actions for amounts more favorable than previously
    estimated. As a result of these actions, net income and diluted
    EPS increased by $7 million and $.01, respectively.