Hershey's $40 Million Expansion Underway in Memphis

---

Industrialinfo.com (Industrial Information Resources Inc.; Houston, Texas) has confirmed that Hershey Foods Corporation (NYSE: HSY) (Hershey, Penn.) has begun a $40 million expansion project of their confections plant in Memphis, Tennessee. The expansion involves the installation of two new production lines to produce Twizzlers licorice candy and Breath Savers nibs & bits. The lines will be installed inside existing walls of the plant and the bulk of the equipment is expected to arrive on-site in November of this year.

Production of Bubble Yum gum and Breath Savers mint products, acquired from Kraft Foods Incorporated in December of 2000, will be transferred to the Memphis plant upon completion of the expansion in January 2002. The expansion shows a long-term commitment to the Memphis plant and will bring approximately 100 new jobs to the plant that already employs over 300 people. Hershey also cancelled a planned $2.7 million project for this plant in favor of the larger capital investment.

The Memphis plant was originally opened in 1928 by Thomas Brothers Candy Company to produce a variety of hard candies and in 1948, began producing Super Bubble gum. Ownership was shifted to Leaf Incorporated in the 1940's and Hershey bought the plant in late 1996.

For the year 2000, Hershey posted annual sales of $4.2 billion, an 8.1% increase over 1999 figures. Hershey Chocolate North America is the nation's leading domestic producer of chocolate and non-chocolate confectionery products, as well as chocolate-related grocery products.