Danone — Capital/Financing Update 2010

Nov 17, 2010

NOT FOR DISTRIBUTION TO ANY U.S. PERSON OR ANY PERSON LOCATED OR RESIDENT IN THE UNITED STATES OF AMERICA OR THE REPUBLIC OF ITALY OR IN ANY OTHER JURISDICTION WHERE IT IS UNLAWFUL TO DISTRIBUTE THIS DOCUMENT

————————— PRESS RELEASE —————————

Paris, 17 November 2010

Danone has successfully lengthened its debt maturity pursuant to its bond exchange offer

Danone closed today its bond exchange offer relating to:

• Danone's 6.375% tranche maturing in February 2014
• Danone's 5.500% tranche maturing in May 2015.

This transaction enabled Danone to purchase an aggregate nominal amount of € 155 mln for both tranches. It follows the tender offer on the same tranches, which was completed in November 2009 for a nominal amount of € 623 mln.

In relation to this transaction, Danone issued a new tranche of bonds for a nominal amount of € 500 mln maturing on November 2020, on the basis of a rate equal to mid swap + 65 bps, corresponding to a coupon of 3.60%.

The success of this transaction enables Danone to lengthen by one year the average maturity of its financial debt, taking advantage of favorable long-term market conditions.

DISCLAIMERS

This press release does not constitute an invitation to participate in the Tender Offer in or from any jurisdiction in or from which, or to or from any person to or from whom, it is unlawful to make such invitation under applicable securities laws. The distribution of this press release in certain jurisdictions (in particular the United States, the United Kingdom, France and Italy) may be restricted by law. Persons in whose possession this press release comes, are required by each of Danone, the Dealer Managers and the Tender Agent to inform themselves about, and to observe, any such restrictions.

For more information, contact: Corporate Communications: +33 1 44 35 20 75 – Investor Relations: +33 1 44 35 20 76 Danone: 17, boulevard Haussmann, 75009 Paris

About Danone

Danone is a Fortune 500 company and one of the most successful healthy food companies in the world. Its mission is to bring health through food to as many people as possible. Fulfilling this mission is a major contributor to Danone's continuous strong growth. Danone, with 160 plants and around 80,000 employees, has a presence in all five continents and over 120 countries. In 2009, Danone recorded € 15 billion in sales. Danone enjoys leading positions on healthy food in four businesses: fresh dairy products (n°1 worldwide), water (n° 2 on the packaged water marke t), baby nutrition (n°2 worldwide) and medical nutrition. Listed on E uronext Paris, Danone is also ranked among the main indices of social responsibility: Dow Jones Sustainability Index Stoxx and World, ASPI Eurozone and Ethibel Sustainability index.