Brumby’s: Termination Of RFG MIA

9 March, 2007

Announcement

Brumby’s Bakeries Holdings Limited (Bsx:Bbh)

Termination Of RFG MIA

The non-conflicted members of the Board of Brumby’s Bakeries Holdings BBH advise that the Retail Food Group (RFG) has advised it today that it has terminated its merger implementation agreement (MIA) with BBH.

RFG’s decision follows an announcement last Friday (March 2) by the non-conflicted members of the Board of Brumby’s that they were now recommending to shareholders an offer for Brumby’s from BBS (2006) Pty Ltd (a company backed by the syndicate of director Marcus Barlow, CEO and managing director, Michael

Sherlock, and general manager and company secretary Steve Brown) as higher and superior to RFG’s proposal.

Brumby’s has signed an Implementation Agreement with BBS and this now comes into force with the RFG MIA being terminated.

The BBS offer is for the acquisition of 78.98 per cent of the company held in non-associated shareholders hands for $2.80 cash for each BBH share by way of scheme of arrangement under Chapter 5.1 of the Corporations Act. BBS also proposes that the Company pay a fully-franked dividend of 10.883 cents per share.

In advising that it has terminated the MIA with BBH, RFG said the termination did not preclude RFG from making a further offer to acquire BBH or its business, nor otherwise the parties furthering their discussion regarding the potential change by the non-conflicting directors of their recommendation in favour of the BBS proposal.

ENDS

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