Hershey Foods (HSY)

Reconciliation of Items Affecting Comparability

For the Year ended December 31, 2004
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In millions of dollars except per share amounts                    Per Share-Diluted
Net Income                                               $590.9          $2.30
Tax provision adjustment                                  (61.1)          (.24)
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Income excluding item affecting comparability            $529.8          $2.06
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For the nine months ended October 2, 2005
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In millions of dollars except per share amounts                    Per Share-Diluted
Net Income                                               $335.1          $1.34
Business realignment charges [after-tax]                   65.8            .27
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Income excluding items affecting comparability           $400.9          $1.61
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Based on current estimates, the cost to implement the current business realignment program will result in total pre-tax charges of approximately $140 million to $150 million, or $.41 to $.44 per share-diluted on an after-tax basis. Approximately 90 percent of the charge will be recorded in the second half of 2005, with the remainder recorded in the first half of 2006.