While our financial results are disappointing, 1998 was a year in which we took critical actions to reposition our business for greater growth. In 1999, we have a solid business plan that includes investing in product innovation, accelerating the growth of our convenience foods business, and continuing to reduce costs.

Arnold G. Langbo

Actions Business

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We achieved strong third-quarter growth in cereal volume in the United States and Latin America and continued double-digit volume growth from convenience foods.

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We now have a strong leadership team and are optimistic about our ability to return to growth for the full year 1999.

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We expect to see more corporate actions from the shipping companies following a more favorable business condition for them here.

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These kinds of actions by the government are clearly not good for business. Consumers who are concerned that they may be spied on are likely to reduce the scope and frequency of online activities that may be subject to spying.

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One of the true tests of leadership is the ability to recognize a problem before it becomes an emergency.

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