NEWS RELEASE

26 September 2008

ROBERT WISEMAN DAIRIES PLC

PRE CLOSE TRADING UPDATE

Ahead of its half year-end on 27 September 2008, Robert Wiseman Dairies will meet investment analysts today at its new environmentally advanced dairy in Bridgwater, Somerset.  At this meeting, Billy Keane, Group Finance Director, will give the following update on current trading:

"The Company's sales volumes and turnover for the six months to 27 September 2008 are in line with forecast. 

In May, we highlighted a number of factors that would impact our results for the year. These included weakening bulk cream prices, a delay in implementing a price increase and rising oil related costs.  That outlook was reaffirmed in our AGM Statement in July, when it was highlighted that these costs had continued to rise and had been compounded by substantial increases in utility costs. As a result, it was stated that a further price increase would be required to recover these cost increases. 

This month we have notified our customers of an across the board increase in selling prices to recoup these higher costs and to allow a further rise in milk price to our raw milk suppliers.  We are confident this increase will be achieved and a significant improvement in the second half performance is anticipated, as higher selling prices compensate for the increased costs that impacted the first half performance.  In overall terms, we believe our results for the year will still be in line with our expectations.

Our new dairy at Bridgwater is performing as planned and now processing over 4 million litres per week.  The cost for 250 million litres per annum capacity has been finalised at the expected £80 million and preparatory work has commenced with a view to lifting capacity to 350 million litres per annum.  We still anticipate that, at today's costs, we could complete the final phases of investment to take capacity from 250 to 500 million litres per annum for an additional £20 million. 

The increased processing capacity has allowed the business to continue to expand sales volumes, and notable successes during the period include increased contracts with both Netto and the Martin McColl Group.  In addition, we will commence servicing Co-operative Retail Trading Group stores in the South East of England on 28 September 2008.

Given our confidence in the future volume growth of the business, we have been searching for over twelve months for a suitable new distribution depot site.  We are pleased to confirm that, following the granting of planning permission on 19 September 2008, we have conditionally agreed to buy a 9 acre site in Amesbury, Wiltshire at a total land cost of £4.5 million.  The Company will now finalise the costs and timescales of construction prior to committing to building the depot.  This depot will help us deliver more efficiently to the considerable business we are building in the South East of England.

We expect a satisfactory outcome for the year and remain confident that, with our new Bridgwater dairy now fully on-stream and a new distribution site acquired, we are well positioned for future growth."

The Group will issue its Interim Results for the Year to 27 September 2008 on Friday, 7 November 2008.

Notes

Certain statements made in this announcement are forward looking statements.  Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from any expected future events or results referred to in these forward looking statements.  Unless otherwise required by applicable law, regulation or accounting standard, we do not undertake any obligation to update or revise any forward looking statements, whether as a result of new information, future developments or otherwise

- ENDS -

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