Result of Meeting

     
BW20030909002048  20030909T114727Z UTC


( BW)(SARA-LEE)(SRL) Result of Meeting

    Business Editors
    UK REGULATORY NEWS

    CHICAGO--(BUSINESS WIRE)--Sept. 9, 2003--

        Sara Lee Corporation's Chairman To Provide Overview of
    Company's Growth Strategies; McMillan To Reaffirm Guidance for
               First Quarter and Fiscal 2004 Performance

At a meeting in New York with financial analysts today, C. Steven
McMillan, chairman, president and chief executive officer of Sara Lee
Corporation, will review the company's strategies for growth and
reaffirm guidance for the company's performance in first quarter and
fiscal 2004.

On July 31, 2003, the company reported its fiscal 2003 results and
management forecast that diluted earnings per share (EPS) for the
first quarter of fiscal 2004 would fall within a range of $.23 to
$.28, compared to $.38 in the year-ago period. The company said
full-year fiscal 2004 diluted EPS are expected to be in the range of
$1.51 to $1.61, compared to $1.50 in fiscal 2003. McMillan will
reiterate the company's first quarter and fiscal 2004 EPS guidance
today.

In addition, McMillan will reinforce the company's commitment to its
long-term strategy of investing in its organizational structure and
key brands, developing innovative products and focusing on cash
generation.

In his remarks, McMillan will state, "Sara Lee's strategy to invest in
our brands, new product development and our organization should
produce an economic model for our company over time that delivers
annual 2% to 4% top-line growth, mid-single digit operating income
growth and 8% to 10% earnings per share growth. We are confident that
our strategies are correct and that we can return value to our
shareholders by investing in our business to drive top-line growth and
lower costs, and by returning incremental funds to our shareholders as
we increase our cash flow."

In fiscal 2003, Sara Lee generated $1.8 billion in cash from
operations. As a result of the company's strong cash generating
abilities, on Aug. 28, 2003, Sara Lee announced a significant annual
dividend increase of 21% to $.75 per share. The company has also
continued to repurchase stock on an opportunistic basis and has spent
$250 million to buy back more than 13 million shares since June 29,
2003, the start of Sara Lee's fiscal 2004. Approximately 39.5 million
shares remain under the company's current share repurchase program.

Other highlights of McMillan's presentation include:

-- The company's marketing strategy and execution will be discussed,
including a new brand segmentation strategy to focus the company's
financial and management resources on maximizing profitable growth for
Sara Lee's brands.

-- An overview of recent successes for key Sara Lee brands throughout
the organization, including:

    -- Sara Lee-branded fresh bread, which was launched last October,
    is achieving an annualized sales run rate of more than $100
    million, and Sara Lee has become the bakery business' number-one
    U.S. bread brand. In May, the bakery extended the Sara Lee brand
    into fresh buns and rolls just in time for the summer picnic
    season.

    -- Sara Lee branded deli products, which include bulk cheese and
    deli meat sold at the deli counter, pre-sliced meats and cheeses,
    and gourmet condiments, increased sales in fiscal 2003 by 16% to
    nearly $200 million. The business anticipates total Sara Lee
    branded deli sales to grow more than 20% in fiscal 2004, resulting
    from continued growth in distribution as well as the addition of
    new products and expanded sales to existing customers.

    -- The Senseo coffee concept, which makes a sensational individual
    cup of coffee in less than a minute, has generated $110 million in
    sales in fiscal 2003, more than four times its fiscal 2002
    revenues. Senseo is currently marketed in the Netherlands,
    Belgium, France and Germany, and will be launched in Denmark by
    the end of October.

    -- Hanes Tagless T-shirts, men's undershirts that have the label
    printed directly on the fabric to eliminate the uncomfortable
    sewn-on tag, drove growth in a fairly mature category. The Hanes
    brand's market share in this category has increased significantly,
    and the business has already expanded the product line to include
    men's A-shirts, boys' T-shirts, girls' tank tops as well as a line
    of men's briefs, boxers and boxer briefs.

-- A review of recent reorganization activities that are driving costs
out of the businesses and increasing efficiencies, including:

    -- The Sara Lee Intimates and Underwear organization is focused on
    optimizing the flexibility of its supply chain, which has been a
    source of great competitive advantage for this line of business.
    By identifying global manufacturing and sourcing opportunities,
    the business will be able to optimize its supply chain structure,
    which will likely include more sourcing and less internal
    production. This shift will allow the business to reduce its
    internal capital expenditures while significantly increasing
    product selection flexibility and providing customers with better
    service.

    -- A Sara Lee Foods program, called Real Time Results, is designed
    to drive out excess costs in the company's packaged meats
    facilities. This effort generated $33 million in savings in fiscal
    2003, and the organization anticipates that savings will more than
    double this year to over $80 million.

    -- Sara Lee's U.S. out-of-home coffee business restructured its
    operations to optimize route utilization and manufacturing output,
    while also reducing costs. This business also has a renewed focus
    on growth opportunities, targeting high-margin, high-value
    customers who can benefit from the organization's new products and
    extensive category management skills.

Today's meeting with analysts will be broadcast live via the Internet,
beginning at 7:30 a.m. CDT. The webcast is anticipated to end by 9
a.m. CDT.

For people who are unable to listen to the webcast live, an archived
presentation can be accessed in the Investors section of the Sara Lee
corporate Web site beginning today at noon CDT until Tuesday, Sept.
23, 2003.

Forward-looking statements

This news release contains certain forward-looking statements
concerning Sara Lee's expected financial results and cost savings for
the first 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.

Factors that could cause Sara Lee's actual results to differ
materially from such forward-looking statements include 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 in the world 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 upon 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.

Consequently, the company wishes to caution readers not to place undue
reliance on any forward-looking statements. We have provided
additional information in our Form 10-K for fiscal 2002 and in our
quarterly reports on Form 10-Q 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.

   Short Name: Sara Lee Corporation
   Category Code: ROM
   Sequence Number: 00009519
   Time of Receipt (offset from UTC): 20030909T023629+0100

    --30--CE/cg* DB/ny

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

    KEYWORD: ILLINOIS UNITED KINGDOM INTERNATIONAL EUROPE
    INDUSTRY KEYWORD: SUPERMARKETS FOODS/BEVERAGES RETAIL
APPAREL/TEXTILES CONFERENCE CALLS
    SOURCE: Sara Lee Corporation

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