News Release

ConAgra Foods Strengthens Brand Portfolio Through Acquisition of Alexia Foods

OMAHA, Neb.--(BUSINESS WIRE)--July 23, 2007--ConAgra Foods, Inc. (NYSE:CAG) announced today that it has acquired New York-based Alexia Foods Inc., a privately held natural food company. Alexia Foods represents the leading natural frozen potato brand(1) and markets all natural and organic appetizers and artisan breads. Alexia Foods premium brands align with ConAgra Foods strategy of optimizing its portfolio and delivering innovative products that support sustainable, profitable growth.

Established in 2002 by founder and chef Alex Dzieduszycki, the Alexia brand generates approximately $35 million in annual sales of products which are available at natural, gourmet, club, and grocery stores including: Whole Foods, Sam's Club, Costco, Super Target, Wal-Mart, Kroger, Safeway, Publix and other large retailers across the U.S. and Canada. Alexia Foods will continue to operate from its existing Long Island City, N.Y. offices under the leadership of Alex Dzieduszycki and current staff who will become ConAgra Foods employees.

"Alex's passion for culinary creativity and expression will continue to benefit the Alexia brand and ConAgra Foods as we deliver innovative, flavorful products that are relevant to today's consumer," said Gary Rodkin, chief executive officer of ConAgra Foods. "Alexia's premium brands position ConAgra Foods to gain presence in the increasingly important natural and organic foods segment. In turn, Alexia will benefit from ConAgra Foods' marketing and operating infrastructure."

Alex Dzieduszycki, Alexia Foods' president and chief executive officer, said, "This agreement is a milestone for the Alexia brand in being able to continue our commitment to deliver premium, natural and organic products to consumers while drawing on the resources ConAgra Foods brings as a leader in the food industry."

The acquisition includes the interest in Alexia Foods held by San Francisco, Calif.- based TSG Consumer Partners, LLC, a private equity investment firm. More information on Alexia branded products is available at www.alexiafoods.com.

ConAgra Foods, Inc., (NYSE:CAG) is one of North America's largest packaged food companies, serving consumer grocery retailers, as well as restaurants and other foodservice establishments. Popular ConAgra Foods consumer brands include: Banquet, Chef Boyardee, Egg Beaters, Healthy Choice, Hebrew National, Hunt's, Marie Callender's, Orville Redenbacher's, PAM and many others. For more information, please visit us at www.conagrafoods.com.

Note on Forward-Looking Statements:

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current views and assumptions of future events and financial performance and are subject to uncertainty and changes in circumstances. Readers of this release should understand that these statements are not guarantees of performance or results. Many factors could affect the company's actual financial results and cause them to vary materially from the expectations contained in the forward-looking statements. These factors include, among other things, future economic circumstances, industry conditions, company performance and financial results, availability and prices of raw materials, product pricing, competitive environment and related market conditions, operating efficiencies, access to capital, actions of governments and regulatory factors affecting the company's businesses and other risks described in the company's reports filed with the Securities and Exchange Commission. The company cautions readers not to place undue reliance on any forward-looking statements included in this release, which speak only as of the date made.

1. Source: IRI/SPINS. Latest 52 Weeks Ending Mar 25, 2007


    CONTACT: ConAgra Foods
             Media:
             Teresa Paulsen, 402-595-5210
             Vice President, Communications
             or
             Analysts:
             Chris Klinefelter, 402-595-4154
             Vice President, Investor Relations
             www.conagrafoods.com

    SOURCE: ConAgra Foods, Inc.