California Pizza Kitchen Licensing Agreement with Kraft Foods to Transition to Nestle

January 13th, 2010

Los Angeles, January 13, 2010 -- Nestle has announced it has agreed to acquire Kraft Foods' frozen pizza business in the United States and Canada. The acquisition includes the California Pizza Kitchen brand license for frozen pizza and related products. The transaction is subject to regulatory approval and is expected to be completed in 2010.

Kraft noted it will use the proceeds from the $3.7 billion sale of its pizza titles -- which include DiGiorno and Tombstone -- to boost the cash part of its bid for Cadbury, the UK-based candy giant. Nestle, once a rival suitor for Cadbury, announced it has dropped out of the competition.

"We have had a terrific partnership with Kraft over the last thirteen years. We are excited about a new relationship with Nestle and look forward to working with them in further developing the brand in the grocery channel," said Rick Rosenfield and Larry Flax, co-founders and co-CEOs of California Pizza Kitchen. "We expect a smooth transition to Nestle once the sale is final and look forward to continuing to provide our same quality pizzas to consumers in their homes."

Brad Alford, Chairman and CEO, Nestle USA said, "The frozen pizza business is complimentary to our frozen food portfolio that includes the Stouffer's, Lean Cuisine, Buitoni, Hot Pockets and Lean Pockets brands. The licensed California Pizza Kitchen business has been a strong contributor to growth in this frozen pizza category and we expect this to continue once the sale is complete."

California Pizza Kitchen, Inc., founded in 1985, is a leading casual dining chain featuring an imaginative line of hearth-baked pizzas, including the original BBQ Chicken Pizza, and a broad selection of pastas, salads, appetizers, soups, sandwiches and desserts.