General Mills (GIS)

Company Provides Fiscal 2007 Outlook

MINNEAPOLIS, MINN.---General Mills (NYSE: GIS) today reported results for the fourth quarter and full 2006 fiscal year.

For the fiscal year ended May 28, 2006, General Mills net sales grew 4 percent to $11.6 billion, outpacing 2 percent growth in unit volume. Segment operating profits increased 5 percent to $2.1 billion. Diluted earnings per share (EPS) totaled $2.90 including 8 cents of dilution from the impact of accounting for contingently convertible debt.

Net earnings and diluted EPS were below the prior year’s reported results, which included a $284 million after-tax gain from the divestitures of Lloyd’s refrigerated meats and the company’s interest in a European snacks joint venture (SVE). However, the 2006 EPS results exceeded the company’s target range, and represented good growth over prior-year results excluding the one-time gain.

-more-

Chairman and Chief Executive Officer Steve Sanger said, “Our fourth-quarter results were solid, with both sales and operating profit up 5 percent. For the year in total, all three of our operating segments achieved net sales gains and even stronger growth in operating profits. We coupled this good growth with improving returns on invested capital. And we returned nearly $1.4 billion in cash to shareholders through increased dividends and renewed share repurchases.”