ST. LOUIS, Aug. 4 /EMWNews/ -- Today Ralcorp Holdings,

Inc. ("Ralcorp") (NYSE: RAH) announces the completion of its previously

disclosed purchase of the Post cereals business from Kraft Foods Inc.

("Kraft"). The merger is valued at approximately $2.6 billion, including

the issuance of Ralcorp common shares and the assumption of debt.



    Post is the third largest branded ready-to-eat cereal manufacturer in

the United States with over 100 years of history in the industry. Post

includes iconic brands such as Honey Bunches of Oats, Pebbles, Post

Selects, Spoon Size Shredded Wheat, Grape-Nuts and Post Raisin Bran.



    The expanded Ralcorp includes a strong team of approximately 9,000

employees in North America, including Post's existing marketing and sales

support team, which continues to be headquartered in New Jersey, and its

existing R&D team, which continues to be located in Battle Creek, Michigan.

Ralcorp acquired the Post cereal manufacturing plants in Battle Creek,

Michigan; Jonesboro, Arkansas; Modesto, California; and Niagara Falls,

Ontario, and retained the employees at these facilities.



    David P. Skarie, co-chief executive officer and president of Ralcorp,

said, "We welcome the Post management team and employees to the Ralcorp

family. Post cereals will become a key part of the Ralcorp businesses and

will enhance Ralcorp's existing cereal offerings."

    About Ralcorp Holdings, Inc.



    Ralcorp produces branded cereals, a variety of value brand and store

brand foods sold under the individual labels of various grocery, mass

merchandise and drugstore retailers, and frozen bakery products sold to

in-store bakeries, restaurants and other foodservice customers. Ralcorp's

diversified product mix includes: ready-to-eat and hot cereals; nutritional

and cereal bars; snack mixes, corn-based chips and extruded corn snack

products; crackers and cookies; snack nuts; chocolate candy; salad

dressings; mayonnaise; peanut butter; jams and jellies; syrups; sauces;

frozen griddle products including pancakes, waffles, and French toast;

frozen biscuits and other frozen pre- baked products such as breads and

muffins; and frozen dough for cookies, Danishes, bagels and doughnuts. In

addition, Ralcorp holds an interest of approximately 19 percent in Vail

Resorts, Inc., the leading mountain resort operator in the United States.



    NOTE: Information in this press release that includes information other

than historical data contains forward-looking statements as defined by the

Private Securities Litigation Reform Act of 1995. These statements are

sometimes identified by their use of terms and phrases such as "should,"

"will," "can," "believes," "could," "likely," "anticipates," "intends,"

"plans," "expects," or similar expressions. Any such forward-looking

statements are made based on information currently known and are subject to

various risks and uncertainties and are therefore qualified by the

Company's cautionary statements contained in its filings with the

Securities and Exchange Commission.