New York's Senator
CHARLES E. SCHUMER

FOR IMMEDIATE RELEASE June 30, 2000

SCHUMER ASKS FTC TO HOLD DECISION ON HEINZ MERGER UNTIL COMPANY FINISHES STUDYING BEECH-NUT PLANTS

Heinz Will Send Economic Development Specialist To Canajoharie In July To Meet With Beech-Nut Managers To Evaluate Plants' Role In Company

US Senator Charles E. Schumer today asked the Federal Trade Commission (FTC) to wait until Heinz completes its analysis of the Beech-Nut plants in Canajoharie and Fort Plain before it rules on the proposed merger between H.J. Heinz, Inc. and Milnot Holding Corporation. Milnot is the parent company of Beech-Nut and its merger with Heinz could result in the closure of the plants in Canajoharie and Fort Plain.

In a letter to FTC Chairman Robert Pitofsky, Schumer explained that Heinz is currently studying how to use these plants should its proposed merger win FTC approval. He asked that the FTC wait until Heinz completes this study before rendering a decision.

"These plants are central to the economies of Fort Plain and Canajoharie. Given their importance to these communities, I ask that the FTC hold off on its decision until Heinz determines how it will incorporate these facilities into its operations," Schumer wrote.

"Although these Beech-Nut facilities are highly productive, their future is uncertain because the motivation behind the merger is the consolidation of Beech-Nut and Heinz baby food brands. With more than 350 jobs supported by these plants, any decision by Heinz to close them down could send a chill through the Fort Plain and Canajoharie economies," Schumer continued.

In a conversation with Schumer this week, Heinz CEO William Johnson promised to send the company's head of Global Development to Canajoharie next month to meet with local officials and managers at the Beech-Nut plant. Johnson said that the company has had a team of consultants working to determine how to incorporate the Fort Plain and Canajoharie facilities into the merged company Last May, Schumer met with local officials in Canajoharie as well as representatives from Heinz and Beech-Nut about the prospective plant closings.

A copy of Schumer's letter is attached.

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