THE HERSHEY COMPANY ANNOUNCES RECORD SECOND QUARTER AND
FIRST HALF RESULTS FROM OPERATIONS, RAISES 2005 AND 2006
OUTLOOK, AND LAUNCHES NEW PROGRAM TO ADVANCE  ITS
VALUE-ENHANCING STRATEGY

HERSHEY, Pa., July 21, 2005 — The Hershey Company (NYSE:HSY) today reported record sales and earnings from operations for the second quarter and first half ended July 3, 2005. Consolidated net sales for the second quarter were $988,447,000, compared with $893,688,000 for the second quarter of 2004, an increase of 10.6 percent. Net income for the second quarter of 2005 was $97,361,000, or $.39 per share-diluted, compared with $147,217,000, or $.56 per share-diluted, for the comparable period of 2004. Results for the second quarter of 2004 include the benefit of a $61.1 million, or $.23 per share-diluted, non-cash reduction of income tax expense resulting from adjustments to income tax contingency reserves following the completion of prior years’ tax audits. Excluding this item, net income for the second quarter of 2004 was $86,136,000, or $.33 per share-diluted; second quarter 2005 earnings per share-diluted rose 18.2 percent over this number.

“Hershey’s strong second quarter results clearly show the continued momentum behind our value-enhancing strategy. A combination of solid sales growth and improved leverage across the business system delivered record profitability, with earnings per share-diluted from operations increasing by 18.2 percent compared with the same period a year ago,” said Richard H. Lenny, Chairman, President and Chief Executive Officer, The Hershey Company. “Organic sales growth of 7.6 percent represented a good balance between higher net price realization and continued new product innovation both within core confectionery and our snack platforms. The recently acquired Mauna Loa and Grupo Lorena businesses contributed three percent to the quarter’s 10.6 percent sales growth.”

For the first six months of 2005, consolidated net sales were $2,114,861,000, compared with $1,906,777,000 for the first half of 2004, an increase of 10.9 percent. Net income for the first six months of 2005 was $215,582,000, or $.86 per share-diluted, compared with $254,364,000, or $.97 per share-diluted, for the first half of 2004. Excluding the one-time income tax contingency reserve adjustment mentioned above, net income for the first half of 2004 was $193,283,000, or $.74 per share-diluted.

“Hershey’s performance has been very healthy through the first half of 2005,” Lenny said. “We’ve delivered above-trend organic sales growth of 8.0 percent, strengthened our marketplace leadership, and delivered earnings per share-diluted growth from operations of 16.2 percent compared with the first half of last year. These results have been driven by broad-based innovation, superior retail execution and solid cost control.

“Looking ahead, our second-half seasonal programs are off to a good start. We’ve recently announced several exciting new products that further extend Hershey’s iconic brands. For the year as a whole, we expect 2005 net sales to increase at a rate somewhat above our long-term goal of 3 to 4 percent, with diluted earnings per share from operations increasing slightly above our long-term range of 9 to 11 percent.”