Hershey Foods Corporation.

Bitte ~Titnes in a Sweet Place
[Q] Hershey's chocolate. Like baseball and aup,p~~e it was all American i.~£Hl.. S,O pie, when. H.eFeS hey": s l~u:<gtestsbarehold er -proposed sell ing the. i€QITI(p,(lny in earJ:y .ZG10:z; the residents or' Hershey ..Pennsvlvania, -the state attorney .general, legislators, rund 'current and former 'He :sh.e~:·employees reacted with. alarm. FOT them, the idea '01': selling the "Great American Ch. colate "Bar" , was an insult to a be oved American o institution and a threat to the' prir ciples ern which Milton Hershey had built his ,C ompany,

Hershey Foods' majority shareholder was H.Ot.. a. corporate raider institutional investor, Or multinational 'but rather the Hershey Trust Company. which oW'ned 77% of its. voting stock, 'The trust had been endowed by a gift, in 19:]-8~by Mi!~on Hershey himself with the obJective of s upporting the Miiton iters.h~ySchocl, an instinnion for orphans in Hershey, Pennsylvania ..Nevertheless, in: March 2002. the, Hershey Trus "s 'board of trustees .decide·a. that '.he. schoel would be better served if its boldings were less concentrated in Hershey ,st;nck.; Therefore, the Hershey Trust announced' its decisson to sel its entire stake m Hershey Foods" which .effectivelv put the ~OJI10r,a.tion. up for sale, Si x ~10~ltbsafter liJ'(lkfun,g· its ·delision. to exp lore a potential sale~the 'Po.!¢l!l~d. of the.
Unlike most large corporations

Hershey Trust Company was examiniag two serious offet;s.: a joilll bid from Cadbury Sc.h.w',e}lpes:'PLC and Nestle S",A. and an. Hld~pendent {lid from the Wm Wrigley Jr .. CJJlln.pan:y." The primary ·qu~:}s.tJlon the board's 'i 1 members was whether Hershey 11Ud. f{)'(' been ·aceilriltely valued by' the bidders R11~." if' -so whether til e economic value created threJu,gb the deal wI~S consistent with their ebligaticn to safeguard Hiers hey's legacy of .oommuni ty' involvement,

This sase'was prepared -by 'Sean Carr r.r.vIBA, (3)- and GC[Jsta:ve liod~gl1·e~ t1VIB.i\ ~lJ3J" under the supervislou of.PtOtescs~rs.·1(el1neth~l. Eades, Chris Ml1Jsc~~¢.eUaPeflu S'tateTJniver,s,jtyl-: and Samuel C, ( ·We.aver~G~eFblgl1J l1·hleF.~jty) was .~1ti[:[;en3,8·.. . oasis, for c~,~ "dis.cuS'~ion,-r.athel··lhan to. illustf~te effective U ..I~ a 0,[ ineffective ~baudli:I!l~-of ·adminjs1tr~r[ive·~"i:mati.ou-, Copyright an, ~'2004 by ·the, I;Jn~versity of Virginia. Darderl'Scb,oal FOll~dalito;p~ Ohar](J~t~svH1.iC. AU-ngh.t~ reserved. TO'.order copies, ·,~~en(.l e-mai! VA. [In. to; sales ~ffardecib~.sine:SRpnb.1J.sblng.com" ..NOtpan o{ thls pul:ilicl~U(j;n n~allhe ie-produced, stored ih a

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The IC[oni'ecnQ.,lilry Industry
In '2001:, the U,S .. confectionary industry was worth $24 billion. Choco ].tltte.products ,~[cC[911J1;1~$i. ~S5 q( tha market; .gun1.~1.2'l~.; and nonchocolate candy [ .3-2 o/a·~ The fgf
p:on~'~ll)p:tj:onof all confectionery had stagnated ill the United States during the, past four .. e~u:s ·.andthe ·C.Q(fStID.u1pti n of ehb colate, _in partlGu lair 'bad deeli ned diLri'Dg, th e y ~. o pre't\ibus yeat Despite' the di ':~~~p~oi tre-nd in the U .:8"'. market, several factors had l~g
helped • '. .'

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.• key industry p' ayers grow during this period:

Developing inll~va~tive-p'r()ducts with high ~9,n.sunH:~r app'~~al nd price P'ff' a pouud Identi fy:i ug a ad acquiring target companies to execute -expanai Qll

strategies
Developing operations and/or distributi en systems in new countries
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p.lacle.in U!.S:.,rankings. Nestle showed 6;:50/0- sales growth, and .Mars .and Hershey 'each .showed 14:0/0 gmwth ...

With a market share Qf 30 %" He~~'~1e.y the O.s. market for candy and .'g~lf1in led ~OOJ.~followed by M/...;-·i-1'w.s.~ Inc, W,~sterfo.o,tts Corp.) at 17~,1 Wm, Wrig]~y J[. Co.. % at 6~ 6.%, ~bd Nes de at 6.5%~ The otherplayers sharing the rertiainiug 40·% of the. marke inJc~l1de.d adbury Schweppes, World,s Finesr Chocolate, Inc., and 'Iootsie Ro[1 C Indus trie s.. II;c. With its, aggressive introduction of new' pr\~duc:t:s'~ Wrigley possed ,il·"l. .2..-3 o~ growth '" . ]:11 revenues over the previous year, Wrig$ey~ the largest prodiQ~~~r f ~be·\vin.g·. gum in o i~e world, had recently mtreduced Wrigley Bclipse Plash Strips which accounted for some of tl~¥ C~P~l~,p,~~y"~IS and . . hn.pr'es,&ive .p~~d-o:rm~~lc~ moved it from fourth tOo third
.

Milton S;na,v'ely Het'[si:he'v:: 'Entr~pt·enenr
Milton StUI.\!el)f" Hershey was born to ·:3 German-Mennonite famil y in south-eentral Pen1i~~iylvama ,on September 13.~ 19~57'~ shortly before the outbreak of ....eAmeriean Qi\~.il.Wat, Jrr bis y:Otl'tl1: 'R. ifs.h.,ey 'was .'a'"peos student, and . after transferring among seven diffe .ent school s, he dropped out before reachi r~g .the fourth .grade, As" a )' 01J:p.g ~"'l:d' ii'L.;:. H' eash e,.~ d ev' ~loe ...... u~ .. ~l ;.;l!'),n intere st n biecorni ngJ a' onfe ... one"'{-I and n '1'8·," h ~, 8'6'· ",I+L~ 'opened the. L~DC;~.teJ" Caramel Company in. Lancaster Pennsylvania, whi ch specialized in caramels made with fres MJ1iilk . Because he believed there would be great dernitind for iaf~fOrdable. mass-produced choeelate, Hershey sold his caramelbusiness for $1 million in .I 900\, but retained the firm's ehacolare-nraking 'machines, .' .ttra <ted by central Pennsylvania's ample supp.Jruetj of water ..dairy farms and. h3'l"d-·wro-:r:king immigrants, Hershey used the.proceeds Iron]. the sale te purchase ."'00 acres of farmland and to break-gronnd .for the. Hershey, "f~'c.t01)'ou M'[tr~·h.2~ 19{~3~ Up19'U_ irs completkm, in December 'f9h04, Hershey h·ad~ ~,pj t tlu; Iatgest, r;:"b;oco~hlte.· I factory .m. the "WQJ~] and the Het~dJ.e.y Chocolate CillflP any-d, was born, ~
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.Estates. JI!.. in."~t:~r t-'~1r~he{1rver· ( ~ _.t~ lIeisbey.[..~. -= .H~rsh~y·· B Bsrares had a...Qol. 'a'\te··t·.· .""· ..IL~L1u.. _. a division ef Hershey Cbdcolate. ~I.i~i:~iQ'. 'k f'r H. purpose of enduring: good . ~ ..~pi"ttCie..l '. ~} . ..~:IJJa village . m.. .. • ... ~ .l._ 111l~._.' ·'h-.~\l...u.r.t.:I_~.)U .:'~ .·ru _ !t.. ~t a Ij.oed 'k. '~~as :-steadfa!d.. ~[-lllfr"u.. ~X~I.:' .~ti")!]l pro:j.g· the :!fer:~h.hi" .· f.~. '~:y -~iigll"sq. "I'~~._.~.::R!'!!" :iiJ. L~LU Uo:i. 9 Pennsyl vania. __ J. u)~)~ "C'i'to'. ..ltJli.. ..~'G'..~·r:Qq. .. '1_··_ . .etat~rl.IJ."r'<-p' .:"..~ te i'\ '!!''fp:t'!I.IL~1.Hershey .·[ILI..~:i(.-~ ~t'~..~"o~:1 .R(.a~\'~lrJi.6fr:h\·iIi~I'~1-:~..~. ~~ '[1-' _o:!I.JilJ..t~. . utilities.~ emplQy~es an. ~_fL"-~ '.l. :i .~.He:rs:h~y' €}lJ).. .~'..srI. . -.e. «r...~ . ¥p~~..6:5...~· ..l . ..r:-.gFew 'to ~edt1.. ~::R~y' W' ' ' e' r·i:I~ a·'jc.. .hand in.-.ve.:.01.fl:~~t' "~f!v:~~h ~h~ Hotel Hej~']ley~...: ~ . s!'.~J'Y~. . .t~J1§s. u~." ..IL'1"iO&'U.o.1 _..~~~ J~b ...... ~evcnue ~g.. allJ~~..:fJ.:o':::·~ ·W-~·:.:l--p.:..~ ·0: f _.cturin:geornmanities" of I he time. .i1"~.~.fter yea:t!!f' of bert~ 'n eglec.•.. '.m.~.~'.·. of&u~gai·Lc...pital fOf' h'is tn-any eJ~)1~~lru.ersney l'tupl"@vement 'r-r-. inclu~ln.~ reor_. "1\':.S[.~ l ~\.fj'il-·Jl~U v 0" 'l'll'l·m].u t lie.".~. I I -:.EHLTgat opetalions to 'pfov.n..H~ljlJ.~ll.-~.. ly:-qO: a'.se~·Exbibit 1.8 Cuban .-.h--·I:O"..o Ilj's. ~ iI! ~ He)t'sltey~ :Cotporatibtf.lv o:P' -.-._.~~~~'~..d·. "wanted it used for a.~·_... .ll.._ L~_.~.tLlL9.(:t ~. Pr"Hn-wiilfi-g... .e'lJersbyY' srpc~~ ~e..~)' .....b-e a b~o..-~. . ~~~t ~._·~~'.:a.]I!~lersbey relied on Vicifits rt..~1:elephdnre <oo~mj:ta..ILu .~I..:6.t... ~l¥ . '...':·s i~v~IVelll~·~tin t'l:'e~tQ!'W.. Tbrou Hersh. p~1tL! . ~-"il ...colli:plelfe infrastnscmre.:~:..ts ..l.liY~.. department sto re..:~l'''.J.ll..(.._ th.:_"~~~I ~-I<. H' .lli.. inclnding roads....:~!~-_.bIth aequir~o ·Uie:compan:y·1's ...t:." -''':'''' .-_Milton Hershev '. M'm'ton ..~...:97J9~ 8_.:. .~'~.~?rl·]-·'d: ~~ . ~ ....I~s.1 ~ MJ.:.~~l b]}sitl:es~· enterprise with:.' ! lb.atmg·· three n~w' ~:Iltitie~t !'l . The develcpreent of Hershsv ~ "'P-'ep·IfIi. an~:dCeylon (StJ ..{~U ...ill .'c~ _·. t. • ~ •• '.J:. Her8]1~y~:~lpp'.-.n..n.. .~.~n~anufa.~. .tJUI t'I.tt'·"a"'r-f-H~:!·i'::l"~I'f:l. 'rl .:S]]..e.~.?I.!K..~'llj!:li.ent :park....~~.rn.ate·d the Hersll·ey Il'lliJl]:tJ... .t1~ J~ ~~ .:?:'i . Milton Hershey decided t9··. Milton .'.. .'i<1J.! ·4.' __ ':- ~ ~:.!.~f . ·t. _.e. E':states HIersh "Ay"~'_ : '. r.·:.or 'biusirlcsJ ~Jim. :e· b --.lIi. :~11.~b}~' ~trfl j - iQI ~~i('J !bId1 .~.alUu. ...n· d"-· ·t::s:fI.!t ·. ~.~'e..~'g_~11. ~1~ _ ff!I. :.ey COnlmll~n{t}r Ce..6~O~~ ~w·j·ng.atiQ~.~~.' Ib-e' 'w- :'e':t" . .. '~n3... ..::::~ . sideration.seIla.. [11 Ia·cl~: ··after -1927.ele'~'ttie.eIi~r~l~.-.He.IL~ 0·*· 1-) .~_:~ . I~~ ~LI:illvt ~LL ~~' _'1iP... ~Ol~p:p"tit~:pn Ear 'fill.. ."~......:" ~j:'_' He.ef~heY'. : ._ fortunes ..t:he..Estates 'Ij:e:g~t. 'l.·IC'~ ..o1:1!'e..': in ~b~.u. ~_ '~:i)nryi.~"'~~.. -...:3'J->'~.h(iJ)lcial lo~§.~'p"lan~gjn. .j'h"n. ~....spita.~...!t.dr)-i. .."~. .~. rin.~~.o~._.'·'IP"..n.- I :tt..~..~:-p._I~~ :~~i:ll..' ' i. 'war.U]enI Company.Lanka). 'Tin U.'~1 !• ~J.¢~..ioatf€j:'fi...htnArr. Y'I _._~ !l _~ _ _ rt.·~h·ll·.fr COJllt?t. ~l~I~.lf.iand . '"'.:.r...:lr t+-e 'i1'lf_~"I .~..In.L-. ~_.x~ i.~d.'~"i'·'d' I~.~p_t18r~ll!l'e$ ~~is surrounding his new f~c!.G!.r..... MiIloIDl ..0W'?n-:...~-..~':9!.d: _ .. H.~:~ ·..~ .ill: I~:ti-u' ~~1:'J... il'\\R _-"I~::...'/.mpa~iY: .~~~ -nrU~<'!iL·IW-F....~iI U.7 >.>:.'u·d~ ..~nja3fe~d.'· : ..' '[I!. .ln\! ~re..C'"h'r.~ (""i.. 'B usiness Is a 'Matter of Human S ervice.. he construeti . .) [~o..!. heuses. . : ..'~I+.otti ·dle c..~.¥~ ._r=~.'a YY~~V'. ebb '_..~ DulIng. utopian -(.}'.i t·.U~. -I.-06"I'.!j'[11 J::!i'V... '~·rii.. ~. ·v· ..'\W!l d'i'.-~ a~L)1[ _\.ftlde the ic}a. I ~" +i.:..'" lJ:t1· ':I-:r'~t--'I'::Qo'!t> "li'1b' :. ·pfe~. ~H...l.!I!"W. ~Qnl"d~.~'.'It ~+.1J. Instead.8. _ ~ ~".·1' ~'Ifl"~ properti ~'~J'."'~'~~~j~ t"iCl~ 1~_.Ou . ]~9. - comp·unv"s.. sewers._~~ p-.' /:: :r.J~ and the: 'cen.c]'Llding Trinidad..coiat_e. » .il...'u'9"--'j_~~'l'L . o/. t EasrChccola ~1. ..pHbm~t~ bui]ldi~~:. • ...i·s'liey Estates &-etv:~d 'tht· ·to·wti '~.111. '.~~V l"n~..j. ~_:)L ~ ....!:id· xn ·W lIJ.. . 'W. w as renamed Hershey. _._" .: ~()L: trl~l.wuilLrC.....~ :~ts· ~.f·~·"· .-.. .ol-"a·. J: . ~~. but be.t.cbntitJru.a:i.d.J-. -e" '_~'~lli tl'i:~ _ . ..._:~ Iaunched sen lli.the red:tidealts of the tOW.i.·~'. ~¥' . . ~.g. ... c.~~ . v.~). k· ~ lIl.~ )dix~$~~d. r-.~ . .T~ta:re:$~w~~'~fe~n:anl'e.'. rw:iiikitl:g money..death~ tn 1-945".~nrf.aIie fields ~a~jnd er sugar ~p::~ et~ht .. B.fle~'friit~a 5."... !~ ~~:P . .... - \l~ ""·-. -~I'. mtiete'st$. ·1.with 'tree-lined streets wh-Q~~e ames n "ervOk~~l exotic lands of the cOCJ:)U bel~h'~ tb:e itl. .:.". HAt' ~ilLl~ '. _~ nlqde·~ lQW1.' mc.e]'lba U' h kl] ..L..~} .y .. :iIV~. whieh huilt ll·_~..::i~~n'··h'-.-._-. in the .Q.1(1 of Hershey's m~J~r. ...re:H:bot op.'.. S : .·_.o. 'J 1227" ..: l'f'ilJfifi-e/r" .:!Ii)i~t~:~ ...ey (:t.':'i1I'll:~[~.14j.....i\z'i.J_.essin.r~~b.. r::.ancitlg..asa.:~" sign 011 :bd off ce wall read ..'ng Jnrw.~ib::CiiV' C'.v.]· ar._.. £01' a list of ·Hershey Estates' enterprises.. }ii'e[~h:ey refused ito layoff a_:ny local employees....r'e'··.~'i ~.t~' nr-~m' l~n'I.. ~J~!r2Ill~::J..L1.illll.m.IIL~~-t..'_. Jltl. ·ey.' Company • I - ~j ._. He...eluding:.}~-!I.ll!r.<:i.'iiR.U.tne village of Derry Church.a fiv:e~yea'r ao....~t. l"'!:.dfll'~1 ~~~r~· ~.. ~~1.....t:.·~e-·tl... In: ']....e~~y: ~~ta. . .anized and te:fi.•.· ~!L~iiiI! '.'V.r!]!\ Bstates ~ 'd~' '..--\__ .ate~Hersbey ESJat¢...~·~J:]\~~'t·I·'~1t"IIi~ A·Q]-~..Bntertaimnf{nt to.h·ey·~s tl~d...U·~:V.~0.d..~r'rele ' J.ved. .WI~ i..'..n:am.'~rPo(iJ. .iILl. .tetety.~~-l~J~ ~ "l~Iii. .) Influ(A.~~f·lV'·JI... K l':~~/~fIJ. ..J:.lives of Hershey's citize~ .~tn.j-II!-.·"LLi .~ l'i~{\l~.. financial d.~tqitt~r. I .0% drop ]:[1 sales.. t. the Great Depression.. -c • • _~ .lt6 'fiOCBt~ on gnl Hers:beY'p~rk~. Caracas.~. ·. _ lJ' B .:'¥f 'o. than ere . ef most :r_.:. V.ef.. between 19'2~9and '1~. ·. •• I 'I".'~tAf1:'/~_:' _n~--.~ -" e-.(.'nJ'. ' Com '"f.-J".lS fot t}ffiee.-~. ~.. ~~~ ~~: . a-'......~:~'J~~ .oi-' .:10 nenehoeelate.dilJ.jV~'< M······I·~. During.~ _J· ....000tltl. _ .. eneed \1. ~ ~J-~. h"I. - 1!8.). -~_-_.i~Jj.~ >'.' JLeIS·'. _''!'r!' . d P]all to revitalize it~LateI~ HIe:r~\hel. 'f&!. r~llU"-'·~' .IJ. ltn_Jil4ing'S~.H~ ~~lJI'_" glf"r-' _J. fiHiII:'Ii·~~.~ I... ~~t<_· ~ .f&:'~ Follp:wing H.:'I":IIn'y·: slaved .l . ·and a p.-:f"J3.'~i m·":a'0C"[· buil Id'~.i'f'fienltie$ . ~~I:L.

.'~. ..hoell" including thousands of acres of land and all his sto.."_l'n' of private ison ~~:·u~.I..I: . . its initial bequest o. I '.t"".~ l ••..c iU""'. and 'with a sontinu itv of strea .seuth .gO" wm~e.Ml1t{ln . b'''' '. . educatienal endowments ._.e_y I~:o' .. M'f .~-!: ." . I u~ IILJ.~.~il. ...f. Y'r ... to develop a -mi1irary'~ra. rut"le. \~::-0.grade._:_:. ....~ _J.. l.ncan L" .!l.. .~ secret . -!~.'D' 1·· th iI"'Il . '..bad soared' t:o' $20 -n]1~l~.' hr T' .UJ 'I '-~.j.1.u:e.h~ childless Milton Hershey bequeathed his entire personal fortune.. ._: .' ".it...:€k. . .. -_.y asked tile Hershey Chocolate ·C~()rp(tm:tlti"n.. "::. . ~aJLJlU...D.1 .. H.n.!ll"li~'_'_:s I .lers eY'CllOO" ·1"'MHi.L~lll.. 12th. ..." o'. residence -uf his for and school wife Kitty "the nnschooled Milton Hershey erehomeless boys....' ". . .1 C3I.ershey ChoGo' ·ate. WIith1. '~~.• I... . [ (}ar~ . be able .. !T _ "[ '. . Company had had.. [ . ~~-I: . : "'"' ..A.". ~ $0:( the most an :..~ the manufaoture of huge quan ities of nne Item. area a.S enrolled i.. in. W'BtS wil11lLng nttil]~ons of loyal cou-' th..3nO students. .Y thf.to race and provided instruction from .-'I!..:·{' bar . to ~iJ1lit or even eease"prodl1ction o during fh_1e. for a description of'HERCO~s businesses._-.! . .· Hershey's . out J~garrl. ~...:""'J11It 'm'~.t.. 1.. Annual spending pel' student was S9 ti. S.i IS""'" E' ." _ ••• . the school' s managers ~ 'Ever since the bequest. .4 billio~. . more 'than 6ight times the companys first-year revenues .1 grr 1.Llon. -..B·. '. OlgdU 0. •• -.ey Trust Company." ~'..:~h·" "~ rd . See Ex'blili.e" MT. ..1 ':'.:'1 "..".. b:"oJs all.. fLL ..". .J.S:~· 1....::'. ~~.'·XUJIl. 'war~·.01 .Ration..school's 1 ~400~'acrecampus.··~.f·. b····· . th.' ~.. 'n'. i~1' .".. In l'l18..~ B·-·Y 2-:'0'0"'2-" th .e »1..:..'.Corp ora. tlJ.I.~'. ".. ~AI 'i-':'Ii'UIt·~r·· 't-h'~'held··'. . food.Ie bar 'with almnnda were the bread and butter of the Hershey Chocolate Company.Antl. J~ •• :-'.. clothing. h me.i._ ~ .:.IllJ[On 'H'~'-''-!Ih'' ..~ making .:" ~"O"'W: .11 'i a cornrp'.-:b"'t " f~" . three years after his wife's I h!--" ..~ ..'. . See' -Exbi'bit 2. .'OOO'1 which included housing..f $. ~""1' .~.24 million units=...6'0 million to' approximatsly $.-.e" .J.1939"1 the quartermaster ofthe United States . D..' .. '. y.=.t~. lof Field RatiooD' a wl. . tion teor 11"'1~U! ~]1'ocolate 1".~I . IlLw 1lllSl S b-. senoorl's manage[~ anr th ." " ". Il_1.g.~C mass p.iltc...~I'dlion UI\l~~ '0'. '('\ a. . l.. 'r'- . .'9~ttt the '8t~ggestinl1 death. '.I1stO lfY. eomnritted itself to managing Hershey's entertain- ment properties.r..l. • I • • 0('..' :...'. Milton Hershev's Coramitmentr The 1vfilton Hershev School ~. ai boiled potato" The re-sult was the Pield.. ".e..J1I. . Hershey was IJtdduc:ing . J SUnleTS. . ccording t:o the deed of trust...<:!i. f its . '.lV-'J d UellS. 1 ~" 'kr .' · f· JL~le._' In 190. an -. By the' end of"World War II. .of soldiers in.J~_~."'. '.Reso ~~Company (HERCOI) and. 'withs.. .d·.'. to the ._l~~ .randJli. the field. And . Hershey Foods Corporation Hershev learne 'd. to.' : " CQmpT~..'.. adm'lle . . elate t}.. • " rts.l.'.ndep endent enrity . .v.~.. Little better than.w8Q serving on tne ITU8.~. grown from.'. "e·same l' . A _.1~~~U. . ~~.....orupu. . with 10' nlv one ..' . .. '~'rl.' ._'. and '· ~' .Ut . t..Qrd ~)l1 '... ..kindergarten through the.]~J'~''''::-)}'r. r '.d. '3': .~\IJ_.iJti..e" H ess.. ..._' "'~V' 01...h temperatures'" 'and taste "just . lived on the..·e. aitted b o..o·.~ . = . .1 . :'...' !J.:II~.li'S'~ en d:o'wment aunumstered ":'1 b. d" ow eosts The nlain _'" k ~.and the milk-ehcccla ..-Jl.. ·'si[andardizl'e. "~r.ck in tbe lfeIsh~~'·Ch6tci]ilte-"Company._ M·:'.l!.. .as \v'e ]11 as a: p·~ac.'ro. Lii !L.. NIH. ~ ·1"11:' "wfV uJI.L'-b"·' """~" -. _')1 'iI'" V L·~"..'... The Hersheys designeted.W [.-."Jt.. ' .~I.). _".'--.1 [. _.~.t... By ] 921. U.and :' S '-" '..'...n. considerabie endowmerrt and fqr r~!l.lJ-:r.I" zatienal chart.. design. ''UIUI' In..1 ..'.e.' - -. • i • t I . '. 'the Hersh ey Trus ( .sales . ..:__ _ ." H . it one. ' .·ll r'" '.'. ... ":~[I·'.-. .'Jrl...idi _. ".S nme memners .i!.1 . trustee was responsible for managing the trust's. "". ~~r _Iu- ....els '·h· .!I!~... LJ ~ w." .--.I.r 7" ].:1. A the... u.." 1. ~ ~ i~.:..H~rsbey Sio.Itl.~. of the: largesteduoatienal endowments in the United States. . sth .~· __ tl· L I l. a oontmlling interest in every major Hershey entjty. ..~ ods' 'b...a:u. Ilktl~ 1Ii'~~.·>c t. l .". '.. 'Witb this recipe Hershey had generated sales of $5 million by 191.. Moreover the '·..the newly created Hershey 'TrUst COnlpa'll:'y as the sole trustee for the ·~rcb()ol. The 'req~'iremet1ts for the bar were thai miL should weigh aboatfout ounces../.'tioll bar that could meet 'the needs .:/Ore--·tan i!. d'iCH..t 4 for I': .n· ..(l'~V ~.Qttillg to.'... - l!J. ever 'W'~'~ JJL).er confec'[ioDlers were forcred...

' >. ~ I. b ]0 rnemb¢rs1.!..1J.~D·Q.n ..:·pD..:....t :gIUW."'. 'tne :N'ew' Ybdt.t..~Oat:.::i.: '.fYn ·away fmm chocolateproducts led '130 .. . . ':!--.1: __ • __ _ _ _ _ _ _.. 'praJg.l~' !a~sIl~:~mi'~i~~:·gtQC~p:'cf:ei'0e:(ta.t3 .·Jantl. ~~ _ . .b ~.!['lI 'I ~ .'.bfe$.. ~>':'-...'-'·tal~rell~\1Wmej1t :¢~Q1in.S Met 6).' . _'"'. ~ !lot:: II{ ._:. C·.. M·ilt.:!!.oomp~nsare d)f sl:lplor.. CUeC~l''Ja(ie.:l around tbe w:dr.~et" Albertsons...f.Il D bars were.kl''': 1165 O:Uly Qwner.:l.ersJ.je. m:ajor Hershey customers included J3aumt~. ~~~ ..-': -.rrent u 1l:. ~.' . 'L."" .. 1".iQ~~) he ·si~e9(:tle:f$}.' m "l" oJ.' .f.' ltillf'·"· l' f\:t:.-' - - .+A ~~~v.~t·~mr ~m~Qn! .. Tm. .B·y 19511 sales had grown to '$1~i4.1I::e.~lI t" d' 4. I' level if.a ~S. .. ~ ~ n ~ • • • • "-' -' I. .:. ".~[~~.. . .~d . Ir.L}pe-r '¥O"ciftlg ...~.Scbklol .:.ceQrrliA~g '~Ctl:W(:)ru~~y agazine.~Qds.. name to Hershes F'. '~.· Hershev's ~olroj ....A.. I~ .:.Mait' '~ihiAth: ~tep:'re~Ii:teii17:%' of the caJ]Jnmlv~:s...million. New W.:0>"re.lasrses of~ccm.~C[@. ...El0Y Foods if]:..m. If the truse~.~. . . uao chaaced . b.'.'n.1u.w :li So/if. ~ ~'t:.·.-l:~'iJsc. p. ._''''''~..[f'.!l!l"U"I!. .bHe~. '.~U~t(gSllrIll: 6ior.". ... d·.~~~~~'b~~1.QW'eiM@I~ ')ffi911J1l6w tJ~t Sgnl[l~"tJle~... . cornpan y had.\ . T fco.DOG.Qri Sr.l:U u __ £iI&.7"'~'.. '!111 'i"~ I~"':&:\c .%lO 1 ~ ~.t "1:0: !1lW10U..'C' .3".~ .siBtd b''lt aenuirius 'sleveraJ] '_..ll'i'.. ''I!V. .''''1bl besan P').I1'Od~~1Bri:S..'1! ¥.'.lj'iihiejJ..:'{l' U' ~.. /~~.~. .Helshey HQ~~~ F. 'a~ll..ee~.vJl•. ... "':' .rtlm 'by Hershey 1..~J..a" ..nor vo Oug neu ls~.-.sIGniljj~{ H~rslteyS~nbo~~Juin~dl![ tLtl 'VaBeH8. and by 1..o'U&oli" :...la...'c'. ts l.. ]-O:CtA -B':.:' .at~·~\)JIl1im:~]j:s~ptl~~.1.on.:.~ 'Other p' ~.. l:··· ..h t.:I'.-_ ..VS.i ~~~!gfi"fo..r ~ Over ". ~atndiDelmenice Food'&~ Inc.actufer:s~. .. ..allil.: .."~U..tl'us.:. '~.'if'·~'~.e¢l'tbre: Htmlher. 'C.r.Y am [~~~. .>.~'en the company 's i J.: ~ers _ey '.. '_.g. -T' ..w..:1' .:~ t:'Ii~>1it~q'i'c [Ll~. _ _ ~.'''.~ ~CiI.".p'O'u8." ~""... . rtersr .IDWJ} sh~ es Sf~ d1.. em!.. business.~ ~. "' .~O'WiU&~. .0.'-t~··~ . .OO~l .. . J1'~J) • .:·· . ~.. .. IlC+....:"s· 'n u~~ .(shey·.~qltllP~." .__ \".'.a.uI~n 1~aJ9r Pll.~f.12t~ve\ler~"t'h company had :.~fte. -.c':" ~'.' ~:. -: h ·~. ...n[i:'. ·ZQO-2.··n:'. -.~'.p"I!i'~~.il1rteJr0'S!S.i B"" ·R'. !a. By' the 19:8~Q~~..~~:.11J. alL . _.. '0'. I ~l"~Q. -10 •• ~.indlu.'.:{nJ}e. 'had reached sales ~~~ ~ .dI '.S.st~s..i~' '_.tv"'f" Rlt. B:. *"".·." '['....:r1d P~Sl@.tot:k.~ ~rigfrn:aI~ft.n. [: Hershey 8~ar~s 'had been re4~luood dJf.1l ~ UJILU n:'ii"'1. l.~ ~..].]...ls.-.]n...it:\~..S'llJLp!..' " orperauon _.~~ . .:a..fo. ' .J.177~ [ ._.g1[..• "..6IltlQWme!l~j11 Tfi"6 '~~n.tl...e. ~ .ed..ut:'..... customer' was Wa'~-. reverted ~o e-C'JIImlion.····..d 1945~ and.'?:. I~. .-U.g.q.0% dhddl~n~tb~h.:r'"'. .€I fi'~~n'l'~l...·'· ...ey remW..of. '~. I.pasta ll100Uma:ior .1JtatiQtj pr.a.-: ~.a~ a .:.ft~t. '.s_tjjclc· E~C)lllMge. p-. -::.cati.'r.~. ...':~~' . ~ . .'Io 1964~... _ ~ _.1~y rihJ~-t~..~. .-7i"' Q~ '~""".gi~oMacaronID...e~ley . ""'::'iJ'~&..~>'. made between I~4Q '1~~r~. The tttt$:[~~s laFg'~Jt0ldtif}g:·»a·~J]1file~] ~~l)Vb bkHer'8]itey~ Footis eJtJinnnl[)tl . "ff~~ ~.Q~" (to ¥qtes.O' ~I":' I .".'~'. States.~Omillion plus' ¢..$. 0" .U'Q. j..'l +'1"".hts g.".' .0f··H~~. IiI I?~cul~~ J4t tru..haJI.l!j.'.·:u . us ... ~~Iif.. annt Butter 'C~l"P"it) 'T').'-i-·.!'n H~I"B:heyFoods...f.l11 R.~£ .P'~f ~f[1er''fil11:1S. .yateu.]. ~'"". .:'.slders . ...1 . l ~j~ w'p'nld~ eontinue fer ~henext 25 years. ~~:~.Sales outside = ..-:"~ .. 4.' ~ ~..~ : 01 po.~+~b~iIf" V'o? [tv ." F.L·J.'1:.''i...· .'...].[....:n·· ~-:-n' ... ' •• .-··<... ~:.H..· 1 ~t~I'n: U :C.'" .-:d·"'y. DJJiin·0 the 19608" "He.n. HI ~I"¥1II.' f'h. I'.l:.:11 ~~~ .L'..t.h.> .:. 0:' ..· li!]:vl~]."..'~ '-'1'~" ./'...: blo·'!l'T"J~'v""~'r"·. :>N: ' ...its ·..s rth D :.:of"":.' ··-·t·. ' .dnw. . d' . $.U[. ...'iI)I:g·I{:·~·.\~.Sit£[Qn:~f:die be:~d .A..~ L ." C· 'l~1::fl' .' ~1~:'1 ~ h}fd "·'~llM.'. .'b!!·AJ. at age 88.'-" '~·. ' .~~ ~kll&iJ!f~V. ·W'e·fit istributed to s..:~~~.1'.Q8i. . o.wJa. _ _ '-J ~. ttm~l'~\s I i~if' '.10.' S. .""T:.~~~~.dile~::...tdultes"' 'and ~l7%'@f 'the· .~r0".. 'I. acgll..up".'. ':~~1.." 'LLC.~tl~Yi9nn.~ '. l..l:": .take .'V..in _ .-.~.. .~ for ..iJi. t a '''::...Y':Be$i~~fjo/dof.:"iI&'.~.. b usmess.J.. ~~~ its C'·'.'. 'H'·::... S:bortly after the end.. In~.n.~..::' .4...[ge~Etl~: ... Wlfb th.'::.c:ut1co.]..'". ._ ~~ ..i. '.1JI.L:r' J:'..r.lie .. .-. ..: wnen 1...":' .'f'l:~1 ·l'~:Ll_J....J.mliQw·~CGn1.'.: '~"'''''' ir pllr. '~ptb the ~P~1-P.~cjfttf: ~.~~Q\ve~ ~ ].1'. "'.etgbey' di...E.!ey ~il.t~'whie.'U\ W.1rrchase. :H.ale.dJdief's d ·d.{1 e.tl".Ie..lI..\1 "".' . '..f"'!' . 'total sales..r:at[DIt 1.. 11..-....f'Mie)fQir 16he.e-·l·"·ng"·' .·.'"i"j¥.' -: ..ftd~~~t l:fe~r}sfle:llF@t~M1J!sb~r~s. eMity m:akef'itl~ the United States.b...in '2fJt12~~ ~jJtet. .a~e ~_:Dtllpr1smgr!oJj. a~lrs'. 1".:.~::.)(j'l . ":"?ii:.. In 19 90~:to 1'9 tllembers~..)~.~6~ .." t.. · "."·per -sh:..J1i..."~).']. :nat..e..a.'to1£.. v. IJl:e ~. 'Iof' Wtitld 'War II.(f': .9~62~.' ~-~ .R:a~ig..ill:fB[I g :I] ofI. ali'" sed return _]'1 '~'~~'. 10·. In.i rchased ~. 'P!> ..' ~rh.pechu 'VotinJg s. th~ years.it. . .yltar~...' '.2Ltt by 'j$.··/:'J.~ 'ow..)..~..~.a.."~.lI:.g1:1. 1' The Hershey Trust C'o:~panV"C."'c.'c '_.~~"T""y .D 'jL ~)i'.e41UerR.... jJiard h~d y~)pml:d~dIfrqm.. • -.oa~ a: ':sbare' (j:.'"~:l':1j'ir'\'i1 'io.· ]""I(llti'iA .. ~:.L."...$-~'.tt~.e'~e~€ep:Ei"'JD H:fu:s'..c:..e...LII&>1'~.tQ~ n:J:rti:D~atin~d:ual~. . .=.lIlBl~]o.'.e-y bUOC'O. .··.AI . .ffi:on .did."'i 'if]. k i '£:..:.'~ ~JIi..inlG:lts~oc-}~~ . ~lll?~:¥eJ~.{)~O[8lL.~1i'!~ :.. " . ~~s~.~ . ..J<:Iti)lt:J. tbe~' 'nTis d1verI~8ifi.r.f~ C"T·AnJ.J.QltUp .quity.. ."'.~ p with. -~. '. .. 'WltJJ .J. ····~I·. '1'1 . [~/j(jJ.. 'oH .[sl1~~'l ·~. .• .J" ~·L!o..t1.maj \-'.. ()f 'tn:€..· ~'ii'"'F'i.!lHl sh th. '~'~:i"l~:l~.~·::".·· ~na4:~I~ ~1 Reese's p-. .. ~. .:y. "~...' :Q~llpany.· eV@f dIDprp~d be[o.. €'i' '1 ~j. r-: "tJ.:.of ..··-. .H]~rum'aEJ' J'f~.rltr' "l·t:1.f$~bfi!~ef1.ld..-c.I 20n2" Het:~~h." :. r m Flers"hey'E~94~':~ SW~. '.the :r¢g(d.~ ·Y( ::"":'..'. .J..f. .-~·H'· rsh ~y . !~'" ..Mi'ltoll1Je1"sfi~'y ...~" "bm"' ~~~b 'Up-e1'nnJ''MilO' ·rit't."'.'~::..~..u'~. beeem e the la rgest pasta manU'fa~tUrer In the Uni ted.~ ).:.ne ooarc s· Inlllntla~il~ 1...~C) [t~..!I!". ..k:'ranked as ~~Ite . 'O.'I' £.n.~' '. .. " . :+'~..ge:d(see ]$)xhibjt~.'Ci. and 'G. .1.ard e~d.'' .: .):_...~.::'.. L! '-!! 'the United S~Ws accounted for 10'%' ~Of'~O~8Jevenues. ' '." .'c. t~l.~~:]·c. . f..h~y 'ilnd a s'~]~C'tg:riQ.·.2Sth:~b~st ~rfOIm~e:f of the l:f!:st ':10' .::'o. 'I~-'~f]'~' J'_.

J. ....l'e:'the Willi..J res' ~d:~nt~ c\ f Her. .\J''Le.ac:y Qf I-Ie.ar. · ..!. ·.~ . .'.5~1..." ~y . .. the naUJl. ··h..\0]_ uves 't lu]~ P'][{). ·~n:itJlltJt .. ._£'iI! '_~'_"" :_" .. 'to as ·s' ~I".s. ~ '. ..shares of Hershey PoodsCorporation. .cry . '.0 '.. yieilJ: . "-. iI:-.s'tOC.~~~~ S':·'u ' ~. lines -f".'.h..:pornisin'g. potential sale ~"of its holdings the .g:.also help the trust sell the ......} !1. .-. '..._ - - . :'.' :e··"n·t· ~·. .~ . " 'i' '~IC~"... i. '... (... .. Cq~.!Ib-. many JQt!s ·mi. AD' .t H ersbey.ctLon 'Tbe~ ~prgg:pect IQf a :saIe ~of ·Hetshe.:"· its ' fiduciary respon $.j.UU...(1~ d' Jt~lat 1h.'.' .._ : .._. ~_. .'. < ¥_c.. me 1~.__ ~!f.~ed' tbe· idea ..~. remainder of' its shares ever the next three to five 'y.ontm1.. .. F':r "'~lo.U .1"1 ttsS POl'l..~I. c· 'C" ': .l .~. .% ~p'Jem..~n.'~ O . ' ..."".' llJ "Q Qi]i.s'hery· 'P:ellfi ~y:] all] a w bo.. . O..cr~I'~'.. .0. \" ':."~ L._..nd..:.. T'ill th. r.500s.J.ne d:" ~1."..-:" . IUM' . .ed . :""!'" · 'n f~e"~. Tt.~ILI..Outlllg·'.'.' --"..~_" W..f (}.llJ.-' ~ T' _.y u:..rL)...}}:JI.." .~r·...' La- :...A~ '.. CL.. ~ ~"-~. .' IF"' :". a. ~ c.relrns~half of .fU"<" " . :. _ .1": process-of .tV:4:..politicians 'who feared H. .· A . l(jisl~r'opJ)ttit)nate .: ~'. ~ •• ~&_.y:. ..19:S.~.-.".. " • .. p't'~n~. . ~I ~Il. " f'C• r.'veS."'.d m]d.31zy~ Co" ...' " .tlg '.utio ..$~ll:~ .s '. ~_.•. ~'wi~'I:e~. S .lt~tbe ··O:V~IYiu.".osal In M'~i.. .plo~yees~ W~I'e Qon:oeto.. .:~."" ..ee l ~'b "J-i)"~ D:e-'S:P.. ...Ideal.b c '_ ~ ." . .. '_ . week.. - ~~1:t:.'en t committee. .~ '~.< . _ '..' 1 '. .. a .:: ..t._.. : '~. 6. The plan called for Hershey Foods._~"_ .. ~~~ F'. ~ ~ ...itn ~l]j ~...mp. bi dders ·J. Fo)lds Co~titation~ Richard Hr.." I d I[}~:le:v{~~:.&i_~ . ']1I""Ii 11'. '. t . me rU~I~ 'd "'I~'l" 1.dffer to .=-~.tittg· .8 ..~~ .-. :c ~Sw.. '. " . S·-·" 't"r'. L~ tr·"~!.Olne. ~..' . .. an Anieriean ibo~~.(}ll1.e.- l' . le.= deci: '. rejected the:·P4l11 fl~l t~Ie'~~gt:l1und the 10.1e'" ·oca .-lLon.chbo~u me~~ting: d.- 'mlo-:' ".: . I••• :-! _.l.lL.r-'~-'~' '_'-_. .lLJ.. .. was ... .. '_ ... au.. s ~ 'n:. _.'~'I' r[he :cieoornp"'/aII'V-B'U'l Lenny' QP..e:y..._-._.Ci' H·. .::.'._.· .s~11Jmots..¢!o. D~ ·afi. ..• "-> " •..6. .Il. c. - _: ~ ~I 'N':.:. ..d:Qm the " ..~!.. (' lGii'..:i[ ddVI~lo. fits '[:'.o·f sal e flP'd ".Ul. 'iIf'" :"'.. .p·ed~·a :r~ll'~es:.: ." "iI1 . ~~"- .mclllLS... part of someone. f:rO»1 land CEIO of Hershev:.' ·llla.p~e.iPccl.' .. be tpnlplJJ.~ .. ~ d. • .am 'a~l'OTIf!bOHId members that the'-~iru.:.'. ". decision "the ~~O' sell was. ~... a ~la...J."_ .·th.C.L '.- .3. .-:·· LJil.!L ~ .tld£(1.~d" per .. "_.F'ql~..e.l+J:$. d ':d In{_~.. _' . . .'!C:i.' . '-'if': .of the e1:1tlQ\vm. p' .··'09 th ere" ati ~'.:f'e M> i~nv'I~[.:t' ..~~~)u . 'j' ~.to FHLi. -~.. .J' .t:· ..ijl-to puttiug Hetsb~)t Poods..IJ. Cotpbtation .on the block..-(jI(l. :to begin the.g. ...0"...nntl-nfe's&i'lte)j .tm..ellc o..~... . ~r. . 'btlSlp1.ati~~l dl:~.vci:demore ~-~stt~ight of'return-and not the volatility .' '~"JIl. iU" _ .iil~~!inin:·em·--: L:.' '. ACG." .ck had shown variable performance..IW"~~'. lie.the.-. z: s.'...-' :. ~ ":_.tr'~fl.v 'I '0.'j versiifICa:· ~Qn.. ..u... _. '. .'.:) " . J' _. u.j/ per ~b1are.Ca · nnrsoay.e~. .owing. "but nast .:~' ~ . 16 vears.V0'wler~..' .te so..J. vthat .W .rru16" Trust 'C·otll~&tttV:~.:"w'::'~Ti. ..Wid th'e: paterualistic:bBlllefacu}r cif a t:tn.'_."..- z=: -~ - - - :.!l l' - -. :~f.f: _""..' _' - ".lt~..y ·.r~·~Jl.iUtll was insufficient.= ..~ .'....er.. ..) d' :&:~~.earry: ?O.ll:o:rn 4~'. -It. '" l' '~' T!:he V'I:I)ar.."_.n~ . ···o..~ ."A._[.if""_. . _ ···.the ~:.t)'m1.itrn." ~iI' _: .bllly·:..QiTrtli~lg to Robert C.~~.'.:t:. t:.~S.ro. '. rrom rie". Poor's 50a~~sloc:k i by: an averase of . 'I A r ~ '.pl'odluced.~ue. .m ~£erg" .h 2iOQ2:1' -U'"M sf s board 'voted.. "I....lse~~g -g'lo'.1 bl1:ity '~~. ~ .~..... "-_ ..: ~ .p'p'@..' _ -_. Ie: li-r_~..}-..:.. 0... " . ]'" Jl~l~l~~t<ey : q~t.J1Qwn b._..i& n t.....Wlrn~etl...~. a g.r. ®:a" .._'_' .gamer' a.. ' .u]' '~it-~0'n 0".._ __ •••• '_I .·'51 01..' ~PSl". ...m.. equl_ H3S ·i.iI'·"'ilT1l'P: t_:."..l'at~ "1. ~ ~toclc:".~idL 'Pi~eemea).' r~ __ "...~ll:l..'. ..'.-. ·~...."': rne 'h"usrano ~I res gra d·.t9S..stake m 1[1' 'h' F" d W~)':~. . lUJ. ':U'.~.~.. ':'1.dto' fbe sa~e" .~"~. CPlntmuni~y le'ad)!IS: ~Q~~g.0:<01 .Rob:elt Hillier. "· · to ...e-~. r _~~l mterrlat!~u~lseeurities lOJ ..' •• '0 - _. .. ..QJQe:d.S .i"fU:lf1.Jl.. ::E:: " ' ..~Il • '. -'_ . .l~I"'~ V PIi'if'I.~.-J .....' -: ... ~ J~.rni~e.b:t be los:t.~Jn1.es to emeJrge W{~..st wes '. ~ .tlte( :He.I. . 'em ~"The trust's ..."'''''''1T-ib'~'' .p." 1.....:.rouljdsw..'~b~us.I._... ..(. .~l~-:g._~ ' . nde~ : .ie'I:' :c......'.eretbr~~.stG.m' p' I .'m e... about pqte.. • L I .:ntia. 'wlt.." . V3Jlile.. ...W."" - . . '_'_".OL.". sbo'"k ~'~ m r: ." ·~t<·'· '.~ .:.".l/_' _. i1?.]! . "'1"'''' tru lEU!I''" e pu.~O:PP~j.-:20(1 H:ers~:]. .........:~-f.mcreasmi(T._.""...Olw.l.!J.¢~HaQn 'log." . ceneem 09~ .t~ P :.. Web. • I.the bead of tbe ':'frust~.'i m "J ~" . ..' ~ .1IJ.Sb1l OJl '~be 'beard tritHersJJ:e. . to "exp lore.......{..trust told the ehairman a. iil Mn:rc. '.. 1.. .i. -shares at-a l'Q% pfemiu. . )h:ad sIC!mficm)llv oU:CpcerEO!Dlerl Standard &.U_ di· '\.~y's· :InvQl..away f U1l~' !'!Il' • ~.• -.? 2'..I"·...~' ' d'.the ~itt.i~natl]l!e8 of peorple· 6p. ". -:..ll'7n :1" .l'·s.f sney S h·ares. president and CEO of '. . .vlenle:Ilrt in.. § -.. . ..J:.c'l: "'7._ . 1."" th..L.. . ~.·· 'to ~p..W'_' L~.\~.~!~ '.s. .~mO'ir'·~t.J ~askerl for Unle'to make ~ leollIl'i"e'rn:roDI.'_' _' __ .'o-~ilt'.I']'~ z. ...-·t-~:..." .nu '~FY :J~!JI[weppe$ ~p.fh¢rsb~y:otg1 garbH2·. Therefore during a 'lnett~11g. Hershey . '..p~. a sale O}~'-I trust ' s enure .I~"""". I~' ·ft'· .' "~. ' I i!-'~' - c"'· Ir'.' _'~' 1.bQ2UZd· however..ey'enl. ..I.".~. back p ". .:. tru-ttrunIOll... ' ful'W}l'~ suitable.. -~\...~n"·if~1r.. ..irfl R.....'. .J : W' .' I. .t.. 'se. higbet prermwJl··:thEtu if its '$h~es' '~Je'/''S. '.. .~s~·:t~~ 'W!vw"frl~e. ': '·f·~·*-:b".:. __" ..JLt 'pd.: -In .. ~ who also .AJ.c~l'bl_·.Y r'.I...sS"~S" I~~d.~. r- . ensn:1. . (dl._:...i:':'. .J"a W01l&'~ld"': b ec. ""t . .....y·~F:o·t)dSji. _-. . '.. .. . '".:S .!! .~by' . 'would bec."5"'.<'~l. ..~ .c6mp"·.~ me • I 'II:: ~'.."mO·:i1hi ·p·:·. io lfer$l~e~yFQ:od~~.·.. ::. .' -0·:.1.\ s :.~:11-'6'.th:at th..' . _' _ •... ~l:. 11" rf :~'.A··. Hershey Foods wculd.enl fund ill the .~.~s:e. ..1Dt.plan.. -!!II'. Lennv.m 'b1ddersm ~ong.:.:1" . .. .eon(!enllatmg . :xe· ...llli~y ·woqld. .p." .-.-: ·'~.T'!i l ·'.9iii"._:<.the trust J.'.grnvestment :IJe:' ormanee rrr'f' iP) ~4JJD:~.• "..:..'.:. ~ .Feeds.'-. 1:'6' '?l :t..' '.vDy! .fIiu '.ow'e JlB.'.'". .

. ..'.rIt]'.·'>4'J" h.' ~~): .~ . ..-.. saJe 6't.at4a..' L. "1 'l'i- i~ ""r ---.. .: '_ ... rane. be. Cortl'p:any'..' _ " __ J" ..01.lC1tll'Y D~' '.d N'e... .· 'of HER.gl ~.j'... '1 ~~1i"II .b' a·.€.r'\i!111:l1d··..." . C' u.G.~J~' d'r.· .' . . ..g~~ .-:-w· ..i. ('R' 'W'"'" ''\ .ey ~.'iI' ':. _ . - - '~J~'~ __ .stle~a.Jl.l~." ~ .Oiilpi!'~~r employees and 'retir~Mh<~tnd Milton Hershey 5€lioDl al un am '. d Sf)'.1. C' Bruce..".1·a.~r~'.e~yg:etw:e' ':al:: "Because-we' re m~iu~tgiil:g dlffeI~en:tclients.. "h .'..'h leawll:g .'7·' ~ . • •• . T~:tl:e: WOf.r.a:bl.'J'··. l' . A:._.y D·.s~~ soap-:c'. .' i fact(){fv.~.. ".~ . epportuniiy and! a duty under' law make . -'.""-"'~ GO·UfL Jacls S~tn¥ef~~. '..g ..sales1i]aJt -For 11~. at sention 0" 'If'" Penn >['-y:..WllliWlI W]i~de. . "arm..ih:":...' '"l:.u..Ia-..~:"'" ~ ~..e.arIaJt.~eveija1.I. . ..' _. • .~.I1..~l)...ili3'e ".' nan .ve.e un.' :. Wet.e 'F''.~ ~"tnm. +:4'.' 'h . ~ " I t ties t"h' e 'l..u." I.tt.t'o:t'~l~by' C.$.} .. u.p hat .iWBL 1":A' "O·:O'~ f...S.. .~_- _ - - -- - L _~ J- ~- J- - - _~L J. ... when .M· . el.re ']'.~~.'1]":-'·'.<' . ~mg~t'e .... h d Thrr..e managing ·th.' is.. to lHL .... "'. q .:~e~.n e.:.a:.ae ·. ·.'t::~-1JiO _ '.._..l! ~OP{." CQtlrp·:an~j.. .. =b'een '~-.:-:.af.: est ~0V.:filh.._at.. I·.te'beue~ficia.. ~..-'~'. ~.•.' :.. u . . appreval by the Dauphin County .5i~biitliQi jQlhl bJel t~ Sch'W6:pP·es... '..'. In...uleqDa.lILI:~.'.'·::·~l~~'i:' ~ 'F'u-:.d''::jfi~' ~J=ltl·'l]f:j.gat:. -..b~ersy :ONe:u the p~·QflOs..l.~et .... "·t·· ~b':·:]'I· ":. J.' -. - -. M~ik~ F~!sJTher~ "~as"a Re-'pu. .: : ~"" 'F '''''1 v.... 1..0''-''··'·· . ...~w .. .~..lC W ttl. U" 'S. aen '\1..".'". "1'·.Vl'.ro.{h v Gn1ltll1i§:sian te-scrutinize 'carefully Hershey Foods..ltiS.':"'.' .s. .e._ . .I11:V'~(L~:. FL'C" ' '~(tS:U..-' . " '.~'\Il ~.J~~ .. ~ '._o· e'x]?ertff '~:u~y lia:\ie.:'..' t:.:. . 1 B'Y~' $'··'e···].tsb'~y~5o-ds bet. the . '""..'C..\..CO.'"..a.t 'Il.CfY . .:.fjqp ~.'.?Jt petition f as:kimg tPa:t. .~ll • ."" ..'...~ .. ." "'.a:n. 'h .ard-BUD!' ~·ifnel ' ThiS Wm~ Wriigle:y J'r'l .' I.. .Qt11._.. to '... "f':' .._"'~: o ··""d g~m "Vas.1~ ......1'89B. .'. !L. JU]J.11}~..~~_tlJ.'I" .. On August 1':. • U' s. .~u .' .?'k! 'i.!i.i-o:'~rl'' tl>::!i.:~-.. alrid-···we 11.r.'·':· --.. ':~·-6··d rl' o:~. ..1 all.l:~~.... H··'I'-._ )(r'~' 1I. sale '0_f . ibCol"". 'II.finzu]'ciaJ manaaers th~U:l the board .J. -....~ ""::. :(bl~~t .-)~~m.~e~~.1ng ""QJ.e. 6/. -~ .... .~~!~~J~l.He.nnsytvnlL1i:a·/at the tUlle~ .ers' ft.l uea -]" s UJ. bids .. Representative James.'b1j:c.j.-8.ry of the trust.~:t~e" uJ]L1Jl.. pliblit fig.~ ..lJlJ.:ers~.LAi.l .'." . b.lJLiILI.. . ':id.2'. merged . ~Vu".'.J .. .£lp·erwhat bap']lgens in.:.heavilv .si irnpHcatio:liS of the.ob·": '~r·. :at~n~J:' -.S:'execu ~i~~e'~>J'_te~~!i~d ~b .rtn tQ ...'"." 't-'MA .fU~y'sale of Hershey F:goQs' he s~.tj \.J' ~~.. ~~ ~ ~ ·ili. .'.."" "J.1}UliJrU . sinale "iii:.dLle.. .ag:o "-' .ne CO'.. t:5.'.il1..·~ -. smn. the.· JN3{~l1arU.~ .j. . I '. : ... ~ . ' ri ._~Ivl when . '" J.) .~.Ii\"'em-.d.:.u:'to..·.'1-0.~w:ing .r. 'd: lfi..~J:l·~ L~. The CO'IDlrr.C"~'IJ"~.'. -..1JJ.::1.'.. whHe W'add ]]~~JT li8 a . fu.~:I:: .gum.. t ired &.bli. 'potentia] sale of Th. ~G'.b- '.. A'~ sugust~'~ .··" 'J'U.. of mS"slt~lie~.' I _ - 5 - .- ..." .:l~ ~lO.(f' lJ=l'~.cl' .gy .1Q.v'.'" trusts and charities In the state.?!:I' d JI . ·io?'.. I . "1" 0:. ~~i" .".~lill_~~.' 'h-"" ".v u.. J4'''Ai". n . g ~u~~.."t.bject to..h'w. brau~.:tJ.t~·{'"""II.'.. .:. . R".arrrree . - ~..-.]ey Jr.':' •.J· "y .3..r~IU.~ .Jlll.]d-" I" ' ' ~ m~e:r ..':: ~ '~tr .. "" 'J..\Vhq in 't'l1~' COJJltrpQU]( has not r~Jd in 'the IY..< >Oll:r~~wrncn h':' aa juusc etJ'fPn Otver enan. ' ItS " ~ largest asset.'-cam .Qq ~~J~_lJL.11·" j:U i~atiSr. .' I".~~in~gJy F . 0:.ul. --I •• -'~I- • ~. 'any antitrn. :Me]{jnne.w'yer for the Hershey Trust Company:' "[The injunction] causes "' ·l·J:·h .v an.' ".'t~:.~e·a. . .tf. the pnhl ic... Wft:g. c~'r·'II:~·l~'··d·: ~~1..~··b·~l~·llrf*-i.» _'.~ trusts. :':~'iiF'" .JI1L· .y' o·'·ffi' 0'·' ~I'~:~ . ..g ..~ '. • pEQGe..I .aine jjle. . .~'C:Ol:nPtu~y¥vitJJ ~llle ... :tf'~..mp·.-.G.ran. f ey . ~rt:.'~ '~'~" . ~·-¥!tLU ~ .'k.e intem'sJ[s of the~ pu... "~ . 'G···· .J::..~~ A .l. nt'. 'arp. ·. p'.:'UJ WittiJi .?li ''!."- ~- .. ."E:'O-"f?' 'H'"I."".f~:-i"!"~ ·:h'.'". . . .·.Qvetsy em.i:S':I" ~~··ljf...ep.. 'f" Lh.t~ former CE[)..S wel 1't" Jerfy' Pappert~ deputy .:.. • '~J ' . .¢~~ .d~A.- -tlo..u ai. ~" ~~lZ.stop.' .lI.'.fU:SJl.O.. :J111B. to: form 'dhe Wm!" Wlig··lev·Jt.1'~.'.e "lr'. ..~"'[i"}'kl~.~. fanri1v'. ""'l..~ .hofn~y'gefie:ta.~u.~..d literall ~ the 'watld:wm. . ." .'Ol~.~~-~t4~~ w· . . ".nn". .~.un~F< . !!l .I..111nTiltee-~ sked .. . T'I·'h····· issues unaer rlvi .t1ej Wl". ..'~" During the injunction . ~ ( Y_JIlD.l) i::.~ .:.'fitm~'s:snerur:m+nt tbt.k:"A-.t . the.e'LdliM~'~!' b.V 1~...p. .eWlll:t.' .i]h.G:omp ..-:T.&::. Bn'y' .'b:'.~.e:p_p~es· . . --a. " g'-.n:nit·U Trl1''Q1..' .an ". I".'.a. cnamnan r-.-.: •_ ••• _. .~ull:~l_lL· a.= -w- _- ~I -tr .~ne.!.JLOfllIDer"'..~J.~_ .n .~n. • .JJ Qijerrng C:~:'$tQJlJers ~~.:~SJL.- to.:..' ill' ." J'ilJ. lItCl11iC.f" 'i:'h' me T'" d" .[:i}.gell(?ra.~-'. ~ .-i!] S..~. todav's.. . 'she .altoriJ.. .=1 ~"'r'r.11."" rC' "."'m''.. "lOJpnc.l.). .p~e. Sensenbrenner ~ .ed....J.:>.g:alns:~.'11. ··z~.ibra.£u_rn. attorney 8el1JJ.i~ .'1-''ID''!'JI'i'lIij'''I2i>!L'' ~'iT'O''-'m'-_-... '" '.as-i. "W"':"""b m~KJt\Sh.f.f'rj. .x~n~ ~ ~' .lt·y :S}j.d~l1]].: .p<"~'c .'ID. . l!J. _ ..jCI._.l..ee '.of the Hershev 'Irust.. '. -BJ~s:Wr'igt. ...u.er~Iiled .. ~' . eal'td&date'for"gQv~ruo:r 'of . '. •• _.*. <]. - _ .1-'''':l-'hTr»t·. \". . 11 Q9'-']. . iAJ.a. l~ 0.}.'.i..t. ""'.'-I'~:SQlW~g.. ti:lU.. is not • .""'1('.. .. l"[JJ~~ 1 .../ _ ..:". :.1-. "1'.." ··VUJl:':~ll::l"'·'·..J ~~g. a... rne e.lJ~:J "b":·"·o'"a#. ... tl '::'. '. .' 'LV :~/..LJ.' . . u~:~.sure thatthe 'LI~ti'n:\\a.'· ...:Wld:tt~t191o.'~J.e.o ffi':'ce better J1· .' ':t.n..a:~.".~dirigs<' ..tr 're.~-5~~A C.

Esh~y products in~Q its 'product mix and Siell them ~nt~rn'ltioflaJty. the O'" .!I! Orbit .generatien became rnesident .gnifi~antcost savings management hoped t." . .re gnms with s~J:c~h ~(~trtibute.1 .'eral new products. V\. ~ _" v p·1I1"1·.BllrWl:igley~ .f'r·("'_"'j'lr"]~·fJ.gum business '1:" Expanding ~ business geographically an d into new channels ·D·····...'the. .g:ey is com milled to achieving generati onal ~growtb."1915) .: To.'I·(·ev. ranging from. ..ategic 'btJ:~itu~Sg b·.' and. ('..tie ·SmA. plants.j·B':'.IIl:O .It..a·ny and: coritrolled 60'90' 6£ its: vOtitfg:'. '(119.d· e d·"! m~' I 0. ·'urn (:1977)" g . "I· "V ~'. a facto . represented a.'.a member ofthe fourth .. .~.s' " 'J. . 'I Ie I • .'.l:ome·~ 'areas' ' .. The "deal mcluded commitments to the Hershey community. chocolates: .~.: .O.·. .'and was.y:rj~}eGt~ve....Swiss.(li9···7'·0.o· "h -".. .ts ~~uIJlted that W..d the world 'The Wm... fo ~'4:3': _ en a.1 .·t.'d~r$ ty ...·coJllp.Ne.11:..".'. ».•. n·.J._-. . .·bba(1 .tins:. ..: . .ed. "" •• ."J~ _~ . I • .v·. WI~..')· i . contpany began 'selling chocolates... .l'llik~ly ~~~ ·W~.gle:y~~: ¢l1 site described its bu si.. and 'one year later merged with the Anglo . . The: Hershey Trn$.'l1flp·"'tn'~ ~. ~'~.rJi£:t . Although it was v..:i:l.= • Boostihg -:- OUf core lc·h.. In 199'9..cned '~8:ev.1 <~ >--~" .s.J .~~u it.clmdi:n..tL C''.u. Company offered...A··'·_ W' za ~ . : a . .J "'[I~~"""'" .and mnn.1 •• ·iI .f#-~d. : .... C 'E(:') After 20'I·O'U -.pe.a.. '111 '.nt!'ed: it6 expand its business by .'a~follows: W. 'and shares in the new company I~Q be renamed Wrigley. ~1 ::Qt):4.. 'With"'(~(Jl revenues of'$2.i' •. assurances .3.ri. '·iii .aJy~..I.: =: '-. '''''0..~ .a1ntd eoonomic'pressnres..objepttvie~ inelnde. .I-:ig we .' -' ."~.stih:g inn~lwti.y ·co:nti.: "..'C'!i~·e·. successful in -sellingchewing gum internationally .tt· Campl. . retaining. ming ~~..I ·[Lt. ~·'f!p:ec~vt~·I.g.h.· ~ .'e~Jn . in.eri for our ~t*~p~o.!Ill S..to nun. Cotnpan:5r.Switzerland -"nhavt made products. ' _'_ '..'.:"w.'phtn . estle . .11). 'stock and $5~~O S b'iUlan in cash) fot' lffi)~ -of tile.:lvers.JIUlL. in De['IY Township . $12'~5 billion ($7 ..~ ' "~O..n~tai].rigl~y management was a~. _"-. .gll~Y' o~ulld::~hi~ve ·s:~.d/-' '.:" Iead -.. ershey.f job reeention at Hershey Foods.generate biglf:l~r sales volumes. Ii' Delivering the highest ...glu market..." '1:lI1~1 J.g the following: • • Bie" . ··bildon in. This offer:' the equivalent of $89' 'per share.o: c . ~ ...'But-by 19'7]~~ it faced c0mpeiitiveo. !.""..ived -fremgum.I':nioe(·to:~.ewm.(1·'i!.s.:un..1..:s s cough Jrupllresa ~io~n ana teeth whitening . • . !l. archIe. w'· h' .:. . and sold its products in.$J.. ' -.. could P.~ _".!l!.~'£i"\l:. hoping 'to do the same with Hershey'S.J). e·. i.....s" 1. V-~I~ !L_..~on innovation in our products :marlke..'. .: .s~~9n.1." 'if"ryingour pro d luc.an. .Jieven 'oents.. and ~RfO~:[.had been.'Ji·iL1.~sJ·96I~ the (>pmp\~ny still offered its . i" -..Mes'. \~.1~ '.!'" . ~.. ' .re H· U:bb··.. .• . 1·1ifI "·t6!l<~~'V .] lIJlIJ.i Wrigley If. :rl~99. ·.. ~Ne u~ly i~s"revenues were der..~:edt.:g]e.h~o~e. ~w..ag..4 billion.merethan 150 countries..rjribal. • '. _'-.J·-'~~:I. "~ -. ~.~~ De' ..A~~~ .oicusing..'.t~.:afStlO:ilr~free. Extra ..original five-cent late price and 'product line .5r%·. ·N·:'!ii!. "19'8''0"' ) . Some .. ·.Qple::arotul. and business p ocesses i.'" .I.. ' -. E:U'QP.any 'v~tl)uld exchange its Hershey shares for cash.In ~20a2" the Wrigley fatttil)i Dvtned woo:' 3. of the ....."1".all W ~1.oH'~'rarfdi:n\g shares Qf Hershey Foods (2orporation.zhe companyinereased as' its." r"-'··'-" ~_'" cQI)1pany: ~fo'(~L1$erl'QlI te. DIi.Iannchiug operations in Eastern I~~. .11 .. Wrigley commanded a 50% share ofthe . W [~.nis x k~.. .s.'J l~D:g7"~enn"$~. including.!lL ~N". . r.• ~ ".42% premium over Hershey's preannouncement ssock price . 6 • -. . -Wrigley.gJ.: '". ~ • ness strategy . .· the ..u·jf'l.qlUl]jlYat lowest costs Growing and developing nur Wrigley .p. e 08e.!..llt .

'W'.F.j"j'~g'.--E...s.·:!:'b---..2iJOt" :N'e:stl~eensolidated its position as +"k.." ~1'" '·C·.. 'WIitet~'SO"]1[J ble "coffee '~'.. F' - .". 'f<. lr~~..'.l~~ 'f! 'to.._ _ _ _ _ • -lI---. '..... _" __ •• __ \Va0 '0. In 1997 . a.J .u!u. '''1''(lGJ . ·.'. -!.J.LlO:n.C!.Q.'A] I...Iv ~ -ei 'I'} str._ Jll . t1i .'!'Ji'nU~dJQ' most p~p' -1:<111' 'p-J..tet B~ac.• " l pro.1 nrovem b.~~'~..!&.\.the.oroduets Libby's ~flI-r. ".I..@· "d ...."e' .'.-:!l~:u·n.C.~e' ~ . Q~' ~L-")! ~.-:··p.:: U c '-.I\1I.:S:' '.<"j.'<'_ .O" --._ \>-~ .J..."'f~'d' rver. '.nr ot sU-'8tai].-.~~ ']'n" ~ '03.. J7'. . :.M:~e.... the. aecerdi ~~.a..ater.escare).'9···..:.m .-').·.. .' 'II Onerational p-_.c~~or '--1-Nestle ~sstrateav.IJJlt!. I >: ." ·c..aty.-:-' . •~ - "_ • ~'!! !l!....:-'''9'nliI7N.cpnfeetionary in dus"tt~e s 'With 'bottlina and parmership op::erat:i{)ll'S~ 'in 1..'~..' O<U"...·0···· ~.'.'" .. bar ... llew nl. diU my uC:fiU.]i"'-":" 11'(' GJLlll.~.~ 19.. e 1:" .' -.i. a holdi ng company that-eontrolled Ute French cosmetics firm . J'i""'i'. name.ItI.q l?(!. ~:. L- _.J"w.~~'fj1r-1im'. ~ I_ Durins WOJ[ld..:-t:.. next four decades..'_. ' j .. ~ U:..t:i'th-:~··.'o· :(:..~ . comp.r.".ttj ..: ~ ....-ll .alli ~'iif' . .i ]I cl._.. i)i'r'i""!! ~ .B~..m~Jg~d in 196~9"giviug.. ..~LL:.·•· .. :t". • .fh ' oft .co:mf.T'i>J?~'. feed (Ralst.was as f:OIlowt~ n(~'_' '" ib.llt" The emnbination-of 011 ~eliv:e:t~g . .--.. J • ~- e·~.~:'~e'S8U.. .'-ai···'t~t..)rt~unt pl. < 'I" -.. <.-.Of"til:· ...r".bnsinesses su:eh has Go:ntadina tOtna::[o products and .-• '. J olL" th. '.'3~._i! I'p"'~'y:'. 8(Bd. ...~ .-. ".. .._W.tQng r\' fh{tit'&e' ·m Arcon.. 't ~I_~!fi.War .·" ".~Qi~ . . -".' U u"r-'y" ··'c'-'.. ~1?~r]:~ . ~dlL ~ L· . 't'lJ.. :--11 .-...._ ... t set -onm k L.m. we.l..'.. 'L.J['~.- ·c. - .::' -..-.:l-' .' ..~m..:Nestle'$.' ~A O"t1J...Y. ..1. < "..- .. uC1 U'.C..~ icensmg agritAf~~nl:en. . '~~a'b'~'lii~-. P'L~ V '..'..n) .athe·. _ •.:1' 1.'. Perrier 'w. ~.~Soulce.. •- ..' Ffn:r"l s..CQnu.--'.-.. 0 '.~-.:.~_ $6n'i:" lZ! .. ' '..~ nlor~.(....''.i..._····e. . ::~~'UIIU." .r' ~.".' '(:N'."•. 1-Jj. S.·.··d: -: "..ved..·l . . .. c..1".':8:'...~. 'ana ..e$r WIn' .I.'.IIL'!II!' r-' '!Ji. _.OJ _ _ _ _ . :'Iuik' . ()?0) .?..Jll-It~l[JJ( ..--"~ ...:.Nestle~sstrat~g..' ..nu g..-...{'... 'Pe. .ullJOl.._!JJU...:..l:1ll:i ._Ia~ -.~)IJ.~.~ ~'(.·.'~ ri·-tl:]j-.1.F<t'uJ!d.. . . r !l:.....~~ -. bilth · ._.a. C"". _.eck~'L·letitJ..~A: N: !:es'.c.::1 '· .rt·' JLl<:..B. .L\I'Ol't~'at n I f' ~•.·'I-'·'·· ol ate ..·. ...'. '.. . JLU based ° ..:e. . .Ltj)1lJ ... .' - m '~r. -~1'1"C}fS' N° . .·: ' .~..·.1. . • ~ ~bavehohlef. '~-. ~ " •.C!i"'\..e:r 'i. to' iis Web site.~. . .u.. '..i). 1...a _ ..1.'t' ~i.gra..-. lL. ..F" •• .f»-VaJ..'-'!i'h..~t)mAmlV·develor.gu. C'! .-.U1 .L!ll~ .2'Q02. mn6tlstty. eompleted several mere acquisitions.."" '~'.::'<'t lll'l.l_I.~"~lu..iFrIi.~_u--. -..l...:u.er ·tn the "t~.!it[n:jJ&~ rmx " ~:"o.::b··. ..' '.'". ..£ow. "'. in ..:-.r..:::. ~"' "d' ""..'.~ ....J\JptJ pet food.&'.'~' .c:rnT'u=].':..:0 bottled water (P'errier')" and pet.-..~ " . .4~% stake in Gesparal. c r. . 111..!t..d _'. U 'I .8·:.~fticietit~ :p~pfit(£~:ne and . .. .. ~-'.. r.. ttl...' 1--..!IL. . ill' .. .-{').m.._. ~71. -.<8.'CIl\¥eppes ' t·d· ~tll.~.'~'::/XJH In the :i970s.. -......es:... _ _.~_U.·._ ~.. ~ 'fl" . .. {U~ ..--. \... . Cadbury Sehweppes w~~~· ll)¥tif~1 ... _ _ •• -ji.niJ}..' I " ~IL-E : .' .-' ··'I~. '"'' ~ 'lL4..~ '.- £Qlrnding in 'the nineJ~~llth ceutury. (.'·-:I~"_"'.lll .:. '- '.: ". ·+. '.. _.e~ .e. )IL.'.t7~~'O.• ' . ·'1 ti ".'loqg4:e..S e~panSlll. . ~"(1...h·w:·.'~~b·":".A"']": --.arge.soU.. _ ... l.Bal$yl~u:th" t. . m '?iil .·!:.beverage...:I.e~·~]"·nM'p.. div~s:md-Nestle'~s nancere.c·..··:. ' .. : __ . t····...'L.OUl'='Pl .. 'f" . .' . -. e c o. _.l .. -.. 'T!~I.. OP]:: l~ihm. 'I·.afn4J1. '..t1L."ALllL.Uweppe~ :.e?~. .w.lh:~onS~· j~qUJ.. it ..iL"~.~'Fl..fi'--.~the company expanded its prDdu.Ctured Its ]']"'iI JLJ. ..JIl·-... pnarmaeeuucais.\.'.u.J' \. t·'. _ J:e .. I'!Ctl.:' '~: ~~~_.. . .et line by lIcqllmtlg a ..".-tl.' •.pittal~... "- company by sales volume ill the '~'1j"o:rlcl. -' erncieney 0.~e"I. : .conlUllUl1Ca.. ! ..... LI..v.. inc]u:dihr:~. ..'&'!If".. ·t. . ..!e~y anu .:_.' . .p'I. _ ~. \ '" m·'.~b]eI' le(l..\A' uf..lneut C:<~ eeuiar-..?-"t. "'f.' -t contu3':lled'to introduce :ptJpu]ar' produets during the....e..._ -. • ~. '. .. ...ic.' 111. 1-'Y'.a. . .glob:aL:placyerjn both.r' ·...': : . t.... ..._:r. 1>I'h lIS '.~gery... 0. named CEO.~d . ' __ '-.rn..prj.:al b"~rd..: .0fJ" t1y ac_q:uI1'1no. rnc...]:..D' !tJ1.e··.·~y . easmeercs '.O-'s·-' N'::..'W -......:. ~. t:n-'~~'e"! ~ ._.. ... .'u~h·" .·J'!' ~f~n. .I~Ul :P:'''jll .... .. ID.." _ ~ _ .I:L:! the .'."J' .:l ~_.... .... .. _onsnID..0··.'td _ b"·J2CiarEl.. -.It·' !~ ~]JlU . 0 eountries BlTI. and GUT .~ed_" n"f:' till~: ~....J Product Inrrovatien and renovadcn 'TI't.. -...'.n-'~ ~1l.p L-!I.~1 "1-' thalmic: r. Tile .~(::L-..bo .. .I!J _ I..lIL..'· .iar '~~rril". " ."-....:1". nsuy..h~-''::':I' ~I.lli..'1.. Sj 'N::.rougb:tnr€ achievenie._~ cul".. groWIL ·nnu."j..'.: erformance J::I..oritre$:are fqr~u8ed .'... I 'Ch-- - '... Nestl:. ..m'c.... '1. ~ .. .'11.!....'~"T1:+'Ii<'~e' ~~'¥¥-4:~Q..·.l. .~.".!l~' ..Q-' ." eased ~:t~:U'.~-VaJlu~ W.~.. inL"n'·J'. ...marcet-snare .'--.:any. : -. .. ~ontact-['~flS l~-O. _ .." ... confec. .:-'-(" ."-.: ~ !~ .e. the . . . ~ .. _'...J?? .:ll:.a:'L.'iI! '" LrL1nCh 'b ('1' ~~t):6. 1!Il!. '1[...:""-"- .-: ITIL off.~fd·J beeara . ._s.n(}~ _elr Cl '.two.. '."-. ~ .. _~~t.·_ ind-.1'.• R~'¥j.I. .. -" . After acquiring Ralston Purina. ~J!. '.on Purina) arwd:..-tlt: .1fh:.eorudy. n' -'w.:nH::"1 1'In' '-tt': ..' ·su..t...Q.tin f.. uJ_ Ki ~.111···.1'~. •.U 'l''n-'_ 'I'".. ~ .. eaner (.v.~ ~u ..'".~<I.0 . 'klCl1J~ding ~Butterfinger .· ::r'... 1..(:ll ''1I':I']..' ~OJ ~-.-..I . C.. -.' . 'f"o'./._-....-~90'O'".-.-.t:!Ji4!0) Iasterts )-. '. .". .._ 1f~. ..~. '~T <I:r.y:.imllitan.~~ it-SO l'd~td€lp..U. .ti:~lla~y P'fodu:e'fs 'were lnanut:a..FIueu.-.'(:~J-" owe won Jd': :$ numper-one: -. ff . ~ t"'" ..f~U~:-" ._ - J ~.. '".-~UI-:U ~ (!I'I! .. ""': !JL1f~J .'S·. '.t-}~~[.... ''I..'" Oaeb ":':'_.. --::]' 1.t!ilf.~:Olceinstant conee C"lA6.1Iiil: q '~:IL~t:iP'y:".· U'" Jt~...

making Hershey Pennsylvania.n h nomic side the..S...1-.: '. was that :a change of ownership Of "Hershey would transfer all rights to the two brands 'back to Nes.:J .W essence t~ :e·"I::O:M ct':.-11.•• I.. '.. "1 . ~ f._ '.d ntaved ' drvestments h'iac .mts...een Rowntree and Hershey prior to NesJI{~.: ~·. " .·:~ll~~<by' ~.' 1.' . '. ry~ .uu.. .ad..000. .JI1_. ~ • _' -r . • !!-"._)I". _ I. 'I'" d~ I .. ..bury Scbw<eppes _P.s~t' IC" om Ie · . ey expectec to rec nee-costs b' CO~O~j'~ atmg operations an: ...O!U:1 . 'p-j .--.... aecrsion..' I r . .b.~ --. :a..· .'5&' e''Y''1':':·' 'TIr~u . Dieing offered. • ". m. .' jt Kat: and Role ." t' ..' .. fa"n·V\' 'B'···.~s..'Ili'fU''.s..' " ' . . The.•.U-. ..JiL'_. _ . calling it the'.I - 1 .. _.'.o1rerniJlg objective was the ' . and ]2:.. according' '1'0 the agreernent regardless of Vl. t~. "'-r~"' '_L .••• _' .....xbib:iJt 9 for Hershey's histori cal finsncial s Ej'bj:bit 10 for Hershey management s financial ~pl'ec:{.d3p..l?~:~J:~:i~g~~rdbi1!& tr:and sustainable p (1)S nions .~·~.:. _ :Nesd8·~'(:adbui:v'. ·..e~' tmctron ..~. ' Dr Pepper/8even.% fLam Asia..abw'er. me uoe : ne ·a.• ·]1•.• ' At $75 a share.~lued the licensing at the two brands atappreximutely '$1 bilIio'D". .'. ~.... "chocolate cap...g ...bos d raeea b...~~J~ _.in I'egioo'lal markets " and growi@...adbury Sehweppes .'r'..S.:: k .'. the 'bi~d WB:~ t:i()mp!icated. ·.' "I -.J."In.' ". ... the announeemeat.I ~!Y reduein 0.: 'I •.rrprovision .iF~i:!('\'[. in.e~ a significantly lower premium tha:Ii that offered by Wrig ey.~ Hershev Trus and '[he.•• $] 0 ·5 billion I'll ·. Q:O' . bytbe fastthat Nestle.r. . ! d ".. site" e. '\'\Ii ~¥'f. econonne ana a.~UId:~W~!f.-. ..· sales ofits . IDt1h..e'¢~d to decide whether se]li~g. ~~1"eca'~.. O· one Q-r'.ibit 11 for industry cosnparables..._'_. d" .0_: Snapple Beverage Group. .e." . an."11'11' . L.. Because the liiensing agreement was structured to continue. .S~.Ii".tl. .]z~. 4 and Eth.. 'this~offer r~Pfes~t. ... ..:adbun1' -$:cb:wep'.~~re value Qf he li:censin. '1 t-1.~..8:c.l~es . o· the leCQ..__.O:f'" tne wor Td 'W'· 1-. ..~(gt~ement..9.~J. S·":f11t.e~· h 'U'··S States h h d d idati ~ d lilted aowever.lp: -acq111$:lt1(111. IW .. d .. began ~l centin uous . r: .~~ H'~' .~ Hawaiian Punch E:"rutdy business .·· "...• and ·"UJlIlu K···· .Jlmgtatn of worldwide.and. :jJI._-"'1t.in France .1 . ~&ltJJj'bfty .. ~.tIi _..r~ • -. Bee E. ~.". sectors.. .." -.' .£~e.~ .. b'oaidneeded tel detle:11lln.L.... tion of Rowntree.IsJl _' .'. Kraft p:qod$" I + .' ~p~Ol?te."s· cq uisia . _:l~' Withnew pro.i·~ib b~s:il'l~§.C-. -t "·NB.C ... ".bi .*5Pf..L~C.. The Ne8th:~7--(...~quisitiDn~.. -:.'lnj3..-. .r' ..to-.1'0 ."/'. governance d .·~"...received royalties frem Hershey for . -.. .. .. 'the headquarters of Cadbury Schweppes' operations inthe United States and. Trhe licensing 'arrangement had heen -n:e~oiated :b·e.'I'I···d.8 < • ~ ~ (.~lg:9l~fQC....gro\v1th. ~'·~. [~Jt!LIiI The I. .work zforces See Ex'bih'·it 8 £(lJF a sum"m arv ef th-e' bid ders' fina nc ials :. .'J' AI ... MQlreqlv.. ....t. 'IOn the governance side.. ' .. new company..l<ll:f fl. :C.-up. An Important aspec .4 ':.' .stood to gain t.''"~'w''.~" _ IU. cash . It.'!ls_iQgon the~beverages and ccnfectionary ~ ~h '..unon capa b ·'ll"' '..' --:I .: .er.g· ~~cg~plh.~-1iu~p.:t1.Y.soft-drink.' c .·g.e the value of Hershey as a stand-alone-entity comp. ~ij"d '"..U!v.£I!.ftOt. ..ey - '"'. H1asfuey n~anlag'6:ment 'for the eompany as a stand-alone endty prior .expansion. The deal included .. . 3:S~%j· its' from Europe. however. rote1' -in xev 11..~ . S":~b'r: '.t of tli€~agreement..~ {offer for Hershey Foods 'was :L'J.qUlS1:wOll .tl. D:i¢'! L'Ii:J .etui:~~ Hershey ..r...! . il'3 d.:v·d'. Nes116 .:e. 'perp. ...e-. *'L.-"f' transac Inns.~'f" . . H . is.. t····.-"'~" expansiou pl.C...· . 0" '..' ·d·' the . .. ~.:ae rues anrr distriib.. the bi:gge'st~pltlyer$' in._'_ ~ n' ..._____:..1... Therefore.. ershey compromised the board 's original mandate . the candy' 200t~ th¢::C0IDpilnY' detived.arred 'witb~ itlie bi.i.. and. .t_s were made 'by.!L~..'bh€\ board n.. ..i-\ce._ •••.brands.~ :.b~j'df revenues/from' the Americas.~· .. By .ans:.!'!_ ..bwepp~eg employed more than ·41." - i_ ·c. .:'Wd:!lev :hli1d .' "_'i.'bids by:._~ '-. .orain~g: iv)itl~~-We. ·:~rf ~~h~¥own~r ~ valqt.. <:·Iee·c· .ds.-.. d .ho· won 'he bidding battle for Hershey..il Milton Hershey... .

o 'H-: C.~te..e-' .Ij~'l ' Herehe ...' .!~.\I:Qt~ ra 'g. I!: rle.rs'h H e rsh. ("). -~.ggh~m ~ • -'..~'mJJ'm'~I:-:·!!\.~~y..D"'~'-~cr-'*m.. '~o".e.m:.'t.m''Pan:y .rstiey Fe....'tI'f' -e~':'~:yJ"" .. IH.~~' ~~·rfJ. -:' .: .~t.a.....t'\~'~'.t~~. Ity .nrts Hershey !Fij I~~nl9' Slati(Dr~ _ ~:. .l'P~'~' s ___VI~~ '--'.'leGi'ri'G ~o.nd ~G t1 ~ ral _.~.~ ~- -- H..y·· Ex~.' .. ....-...iin~ fm:p:I~[R.r. ( ~ 'H'ets:fri~ey 'C'omm un j:ty ~fJ~h "H..' • 1 • . .e rlmsntal Ga~l1~I..~ .)k t.l!'I~y "'[... . .~. _ .g~~'ng c·." -Y' ...""" H'6." iHgir. 'I '6Jl!'rBl.e. . ~-.·-..d ..H'. '"1Ii"'ii. .::. '~. '.e. H_:e(~.£J. :: •• ~ .'11.::-. " ' 'H'~e:r8"I~ 'D"3.Ki:t.a. H. . " "~~:!.:' "..--. _'.y.o'\1 e> ~'I'.1 r:v . He..o'm"m un '.. E :.." .~.~' .-nt . _:-Ie:rs~ C .ershe:y 'f'a:F'm...~..S. -~.!Lt\f~IB" u'l~d-'~It'ji!ll ".. .~.li\1 -B. :lj' Hers ~fJ'Y 'C'ot~ ntry 'OnJ:[ll -... " ~I.ey.' ~.rst(~yf@rms." '.. H...

frige:rat()i..'pr:c~.en~d~'19XJ1'b~ :rvHlto(JI.rldj~.'fi.EL HE:R:~H -. and '.000 square feet of mlee\~ngj ..prG. •• ••• .i(:2:Ott'an~m~J.20.est rooms.HE.a. '.~ located-at He FShe!~.SH EYPAR K' .. ary -dlurhl'g t~e··2[Q02'-20 03. 'wide ~J.ad 'o'ff H IE:A. • .er~es.ERSA:E¥'PARK-Stadi:_:m reek and'.NT Cehter.They c.ore· . THE STAR: PAVllJON.~ptuted ·the:ir ':9i"Q hth.._ ~nt· '1~93:S>byM'~lton S.fheit ne.Hote.A. 6.c a..D and-ts horne spcntt[.events.o_gnf.aCre:sf of' 'r(ill~:ing .:season '.p. HERSH-EVPA.m.ren tt-le\Be. and numerous pf forpopular Irs an open-air lam.e .d[nr. ln~Ju tlll~_g0ttLe ~$Wmnler'Concert: ·s.e1rshey Foods C-orp(lfati'On~ but ls . TiHE. .and '1'00. l F IHERS. .R..ly 800 open and' s.do·w ofie.$tbcu and a.8.th~ Am.91.ofm'eeti.5S '. iH.m"~'~~a(s ~pte-Q7q.edby H'ER'SHEY~): Hesorts.itr. ..£ .ate· the.pl~a.a. ~ -:: • ~ ..mIs.i". ~.Y..o1j"Am.• _ • • f' .6.:rn..zOl0 Igc.7 gu. and l HERSHEY Lodg<e' and CO'l1jve:ntfoln Ce:nt'e~r:offers.'is an'1! 1 -acre w'aJk~throtlg.d'ow CSlmlpg:found..j jflg full-servlce IUri.EAR.c..8(s. '''r • •• .ale. lOWN! rC:A"F~E...su. ls own.offers Iandscap 8 -'d!9'$~ig'nland mai nte~r1 rrce fbr b'o~h comms rctal and a rtH:lfJdenttia.. Jabout 7r200 H IE:R:$H'EY' ·B.'fre.m:an.ME. ~o.r h~s·'em'ployeeS:i'is now h . The-H otel has been Iret. j " H IERSH:IEy'·g CH oco LATE. . .w.ER:SHEVPAR'.RS:HEYPAR~K.es.re~irrta. . lot) '~or r.can WUtUi·fe."8ea'Ui:ng. .H EV N'LI rsery~ frau n dad j:n ] 9105!..igh:mea.ntJ..e~ . . to..He:rshs-y as a..Anu:kic3R HoCkey Lea.o.and daJly live.S.Hi!ERS:HEV'" BEAR'S until .Park:.ue'st rooms and 2a 500'sqlls're fOOt. s9. Hernhi8:y.Htg'h.l1properties...[ PQ"" HE'RS..zed with the' priest~gli .sho me .~ 'g.altj at Cu p . ehooolata-thsmed r:e&tau rant 1fe:atli.t( Stil~i.OQ.@r:mety outdoor ¢onc~rts.ex:~.I.~ca Prleferred Hote.. :~~h vthal1 sa r1d~~:~~~d'ttra~i'f)ns'.ar~.ri. . I~DT.ve.§ re'.tn'e ·2002:-:2003·:seas. ls the.IR:IC.& Besorts.Cham:pi[onsh ip: in '199'7~The" B EARS.u. .HE..~a:25~·and wa.. ..::a OLJiS .atur. w 'm..j! r 6. H. hasi·23. t. lOOA.n~'i· b in banquet.5jn ann ivers.re-grQund$' . .r.a..at.per~t'tng · ~fW~nCn~~)e. co.eh.0n .n Dfd[ in lH:ershey.g u.ad I~'y H. Source:' Hersh.'n~:ar.ouAtlt'y[side~ Hlershey .Enliterbiinmerr and 'Resorts Company"..AAA FQ~r Oiiamend Award . m'embef'.. .NQrth Arne rile.ls:Choootaj:e W'oirld 15('.lts '.S cebab r.I(:Nr~n •..$'eniih 9 fhre r:e:g:ions of . BELLA LUN'A Is a New YOlrk Style: Itana.' • i --.phitbealre.cl next-to HERS:HE:VPARK.DriV9~.e'8glll. 7..e O. horne res.'V H..r~d 'kant porch. oldest conti npouB~y' o.fo. .f Hbi:t()~i:C.N!orth A. Ths'C:iide. mlicro'wav8t b.! G~A. and' .had:sd earn psltes ..et.ustic 'cabi:r1s wuth 8'~ettriQ~ OBITij}Sr re... at. .exhibtt: and banquet space.~·g. a~ternativaartists ~ . I • \.eriG~n Ho~~ayLEt91iQ ~n us.onl"·wt.to tner An~n~~rh:~an ~ IHoc~ey'iL.r.V It ls ·horne.mera.ibt[spaee.''a'ntertainm!ent.~oca1.-J . moved t.~S':..O. to' o'vi(.a them e :p.

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rt'v..2J.+ . j !i'JoM.81~ 3.Ulniv... Univ..1LI.243 ..3.84.I::!' • tary.1"..C'onlp'adson of:.nTQ.ch"oo:11 Oolumbja. ·IOIll 's" E.160 !U > jlr..2. 8.NO·".- •.iiu ...t(:A: _qr MlI'1Fl " ..'.~ch'ig.. ~'.1..h' . ~ $.. .i~. .~'n~u v. rb 111.IE=~:I.U "'de' . E c'U:1i.. l.Private 'Ed ucano nail E'nd6wm.·:1t 1i.....'~C·.: .s~400 41..JIll I "'I ." ~ .. l.. :0' ~ lDol.. UJillrv~(Jf' .e-~' ...-t·' UPPO.~~rl~va..."I' I!"Jinl!. \!"iLJ..0" . _..I. '!"..'" . l.-_.~ ILFC-. r. .r:o. rlo .3:5 .J .y llrliv.3 . .l.l]" ~."""_ S' ': . ·'0'7 3 'j""tU.8. .250 _ .2'.-i '*-ii I f'>" .1'. Emo r. te. ·c.W.s.'I.8-~25n 1 OJ7.dO..llll::.rd tlntv+ n~·v M' a' ss..'....11 ~I... C'o·rnel! Un~:v~ Unht" ~f' Penf..!577 Texas .~JQ:iv.3'9 Y~..e..eni:s· ($ milllons) 'Harvard lJn i'V: . ~"" - . -"T:e.io"lyfil.M... a :S.. . 3'3'82'" ~ '.Ui![n:~~.:. R~'.C:oU. ·N.492 3i 470 T Unht.~ 00 '241'4' '--·1 $.~~~iI-. I ~~Iru {I' ' ~:rv!i::. of N:ot..~[e: Dame D':'lI.Jt~.... ~. t.4 1 4~249 4~018 9~·a.. ..l\e-Sf S.r:i neetun [}nIV: Sta. · '." 1~.c- s 1sa _.. .!.:I~n A1-).JeJ)n 1 v. M'iilt'o. In'. ' .... '2'Q'1i.. ..m -IC!!I'·i"i... "lli"""·i!':'I. .. Ii V an.A~a!vl1l U:nj'v. 1:I~iW·!I :DartJm.n ing~Qn' U·. .Ui b SI. .{"...to".II.nhl IAJee' Urliv . . W81..II'Y:'~.n He:r.F] .outh .ofCh~cag[o Npl1~w)e:stle:rn ..'I .s. ~. a 3$9' 6.n..·.2. .f\.

.rdCdfonl$dt~'clttt ~ C... .'~t~r. • -..~:and board ot di rectors .lw ti'im _pi ·McN.m." .e..St {)~lm.WiIH'"". ~: ~ ._.' J.:u _'. ~ ~ ..~AY." 'I''.d _~ O' .. C.... .s1...g~y : 'FUt:ha.'~.• • '-.__ ____ ~IQm". . t)f the.'!..m.t1 ILt#'"iC'J IfjII"ii:a'~~1 u.' ..Ke..1 ' ~fr. -..ey 'Tr~st C:o!:&. 'W~if.~ r ~'~K.'.{Vi~o''' ~-k-''~~:.' MoC.'-:- ~ Evans --": .J'ahn.GlU·U :""'I.I:o... ... ..ag.'Graduatll-e.te_'~: W'av ..IL~_J" \' I' -K .m$nt h.r..shey Foods C()rpo.:p .ea:~-"()f' ei .t~es. - G.of' 'Th:e . &--N u r-iiok.I ~~din:~ '-.....~ . I" - -. ". ... .·'T:-~"· . '_ ~:S~Ier .1 of·BiJ$iness. 1".• ...".:~'i·rl.aJrman of ihe"BGard 'of He·rsh."0 I I:' " II ('H-' -I'E.Ml ~tornS.... Pres:liderlt USS. R ...J Pl9ra.the.J~.'A/-'~O~:O'__~) .IPA JC)h~nE.imem..e'F He. ~...an d E~eEuti1\'i~: blficer S'E ~b-orflpairJ¥ ~S.. - ~~' : '. ~ . • .s'S r>:L:1il P" • -<"0"" ~ • 1A'-. ~'~'I~I~' - ~.~.~ .I rnA 1Gl.~f'. '.e'~~hey S'ehool Board -ed Man.and Director NETS Inc. ~~d(QE~.. ~:eUrader:t~aj{m F ~fl'i()'f ttU13 BillirtJ C....l!9~1~-'i' Jr?~l n::::l. U.N M e. _.g.e..llmtnerm'a..--Wfll~Ja'm 'R'...·.-I' an.. _ -.." .f :the At '.1 P reSi..M .d·:. HeJ:s..p..I:. _..' Jlot~hp~ 'R. p(~v~~~b~ it1v€~jm:e:nt.entl . MIlito 11' .o1 S ahasseec ROfla~~1D.t~~II~.. .'~ _" .p.·'tC1all Hershev ~_y enti.'~ri.PA ~D.~.rf1:an Food~s·Corporation pr~si~:ent..·~~. .· .Mar:'·. chOQ.. Mil~ttO.rsh~v Fq'Olqis 'CQfpqlP~~a':11 .U~-~\.1~ ~IJ ~-_.M'ed~o:laJS~'Ci~:ty .. _.bun:--' g~VA.rs Ch~~rman-artd . -".-I"'ng'J'-ilrug[ .'~ ".' ~'"L Sha:rb~lLIg'h V·1·\/I·~O_'~·"" _ 'V'.i~nt:·!l:iIrl!'l..~[t~d ·Y~. ~' J.... '1.lil"il~'1!' J:·o.:.·.!..." 'S't~er!I".~ In''G' -·1'?tI.'.:nd chatrman or.f~1'~d 0:1. Kentietf:1 L 'W:qJ'f:~ -~0W"1 H~~~_ . __a- - so "--' .tin.·'·8···'·kA.-.. R. '.r-8t·~~:1Hl ~e~l)lnetl~ .A''-'. ' C'-"O . r: -R~._ ' l.'L uoarl.~-'-'~ P. ~. '- - ..tit~h o og·. .~-~-.-a djVlsi'on ofUS~X.....!..arp~erne r T~'~'rn'l1 l.iie:buski' H~Pi~J~~.--.U'Pli~e.~ ~~"o- - • ·c -' '! .~eso "rl' 'I. \ _. .~ eH'suey 1..H~rst~)ieyaanJ< Maj9a. 'Schoo ~ G'f ~h P~n !l:syhf~nl8i.. - - I.' C····C1/~·0.. Sr-:.g ·'OffiG...'\':'~i. d Ohi~ef Op:e~n3.~tOn Pifi~hotgh.lB'.r:t· 1 R"t:!i..ng r I.'r'd<'..-I!V·" . O' '" -.~\"'" ~'" F?rersidefltAlt1..L...~e:B:j 'Wa. •• __ • • P"F"eside':nt.j neman EX'9CUtfVE3! Vrqe~~pr:e.rman 'arid-'O. ~.g-rlcultu raj 'and rv"BGh..n~..'E(j iH. ·.-.hH.d. 'o~M q. r\~ ~ .. _po: ~~<Q k~~JrU~~~ JJ'h-..~·W~'.._ .Ur:jg: ali · Offioer :H e r.. d~.GJ:at]'ann.'O! 'n .-a. en bo . n'·.me ·TrUJmH. -.. '.I '_ " .' "".dLa A:. ~. Penn Stat:e. ''.ti-l-...Qa~Ul 0 ·f·~·'·'-. " " .e~ ~P~J~n:~~.Li·.: ~Ct)..~.drusfr~l Fhyui...y.@$·. Vice Pte$ide.'l.•.otllst®'t Dean.. n~~f C v_".·.n. '. Hatt v..-. GE . .: 'b·-'>." . ~-T.lk··. --. Scll.'.··· 0_ -__ .. ..bf Ohl eliGpB-ra.~Ufi .¥' TaU Flpri'GEl Drja~.enooi seN~ "._-ow' .·the bQard of!: H~~rsley Ent:eftaln ment &..t~tn[iQ.~ ey Medic-a)-'Ca l"Ieg~: ..rl~)6ra.~' .:~. F" -t:.me.: .... .~lf.fF.Qtn0 Fa:UQr] .Il C'fi.~ H a r-r:. Admi n~straUon'JJ:olll~gl~·. ..nn:etr.'fd" A .ew' .S Rod .'" ~' .'~..:r t...m1S i .the: :Soam' HeJsHe-y 'Trlj._ .&-..lr~..j2!rB " _ -.I V~II [I~.. .g'.. "-.i·.~n~y" . oounsE!I. Cn-rt)Ora.. ._:! €haurtm an .ny t(~buque rqrue. Haft ii. : 1.. BILJ." I~"~ ~..-I--'-'a A . h I :~""~I~"\!' _ -.skte :Q.~:H..j.II1 H···.r1U.'J'!fm~ncd.. .I. _' ' _...~I}'II~ m·· 1 . ~~ -..f1 dar _IIUl.ic'·:'~'a..iS.slin:i~.-.~~·...~padne 'in th.ershe-y Food~._ .-n~ _'I/. -d' 'I.of 'Wi..I:~IILI. JI'·U9~Bo~r[L~.-n.df~the. Ci1iaIi.an:'i)c'a~ u'ri:i~efs:~~.Ji..He:rs'rt~y··· • •• • .i. -. ·/Jarnlsoil. IilIFGCtDfS 0:1 I~~Plil :l~n ners~'I:~..oo... :Siurlli nga.9:siar C.CEO a. - .CEul of HerSh.H.Alexa. f R'.J~:~i?t1~rrrf~n :§_oaf~r ..-.tfila. -'- .. " " W'i~l~am H' .__ues~.' ...~td oomp~a.

d CEb~ H. I \ J'onA .• P'u.. G.9rr. '~h .... ..'. bilil .~Esq.advis...t H.t. ..'ot iHiUih~%1:" G ro (arc h lteots"'Ii ""'rl~I urll.~' rt '\10. Adni~l." ... IU L • ~l! .I~~ [Po .d It on-.dfrN3(:tor!.6U'Y. <: . 'Iexas Bi6techno~@gy CQrporat!ron ' W Don ~C:o(nweU i '.1 0..a~rrii.ent... .:.: . I ...i .. n" d :S'I!" .W' .Qal1s:u ltant d HitFlry C. z...8chOr(jrl" ·1 a A. .er:t$) j J~Robert HilJlije~. I~" • a . a AIEmqnde!F .n~~d .'·. ~~ ... S:r.o~: 'fam'ilV business p~Dg':r.1 [Cor~~enIU'.nrC . The Hillier Group '(ar:chI!1.Y trv.' le r '!jj!·'c:..llr Jr. -..obett' F.If .FA~:A A.rs.rUCdon ··.. WU~i'arris'& [Company ~:nstu~u1i'Q'n~al ReJsea..tJ. . . Seliii'ees.f .Mlatuerr :Hev.ational l N Co ~'po:rat[on Robe.a R'.' 1 Lucy D" Former P'oUcy"..er~~ P:'·' '"erh~ nd ".:: A . .~h &. J'Ul'let"C~ H:ow~and ..VP F1'~a~lda GFO {r@{}~ Abbott and' -L Jb O~Q . : . !!sy .d ee Associates Chao i~~m"IEUl Presldent.side:u1.ndetJteducatilQ.. !DlJ iR:eal' Est'aisi Partners I~nep. . Wend"'" D .m!es~1LI:e Le . LE!i I.~.. :" '~f.' nes.Ji)... ··'· ..ms-'at Snmd~i En.. ass J: '.he.~I:. ratorl . \1 _.:y FO'Ods Corporati'lon Chairlma:n'11nal Founder. a..IE()~·~nco~n . ~:.t SUiperintend. Cajmpbe~1 C:h.' ~ _ Ha!ckr~ey~ Esq.:E~ VF O· 00 roo' .·Sunoco lne... \. Morris"Wi 1m lams. Planni "g.... BO .: c. Jamlj:son Chafrm.'. .~VU.irmaJl' atJ1d' Founder .. .. H: " .aMI~ M!aMaJ..l ng' .".vanarrgh J'ln'::iill"ilI S··'• ~ u. il'EH.1l .:olmpan.ft:uJ.Jr~ M~Qha:et 'w...s.' C··'·'· .-. .Johrr rCi~aig.C ons t .C:ompany Cha.ident·.n lHr~.'. Pres.~'t'iO:91 _ _ '.a. . ·C·hajrrman. Sch O(~~' Dts. .II·y ..~. Coris. .'r..ne.~~..rJ' Mackley J'.M.1'r.alh ahd'C~'O (ret}f. . Pres~derlt. M' "' _'.'iI: a' C'n~.arrltl.J I II:p' ~l •. .~' John C.itep:r'enslIf. . . LipSllz'j Ph" n Manag.t an.. 'C'L~1 'Ch.an.~ ". Pre. G. ~.:0.~ MC'Oo. Pen nmngtorl1 Co.and'C'E'q~·H€:r~hey.. Unmvstsit:l! of IPerlns.~~ll...'~ .irro."resl~d'".and C.nb' R·'~U ..airman~~andC.. Pi:etrus:ki fihai'rman. L~pjlay wmiam H.n . ~I Cha~rman ~'f H. Anthorrily·J.:"C' 'E'-0'.:adQ:n dl' >i" . Ie'" .E':PIS:Cflp)cu:'C~IUU.~ ..riefoj[ dehn M. McD ow. '~:...ial Center' Wha pion :qC'hOQ.ltllJs~.~hla:n D'n!rnii I' lHi]11 Prasirdent and: leE0 The Times .': ...r 'F0un·.e.. ..~. . ···. lir"ri'~rector .. iC'Umberlarld Vedl!e:y - Ca. 1 S1~h'.-I. WiUiam L...Jobs for the' IFuture d . Jioh~ S. ..~..y. ..m1...4' -.. _..

s~kl 5&.' " (19"er%) tt4.' 1'·8...-?%) ./O.hey "i~ 0' ""'0" ~~::fIl~Ie r32.1(0 1. 60""01 o S~&P500 4.) 1:966-2001 {l6 y. 0.~Q1 J."Q.Prtc.'~~) (24'....a:. 20'fn '1·9'97:.0~o.5 year9.e Pa.-------:---l:"'" .'" rHle.e (1QI.9%) l"3..~arsl Hers.~she'y Fop."'..P 5:00 9 O. .8B-2001) .~.Q~.d's' ..normanc.r...+-----------~____"==-------'---------~--r~:-===~----.800/0' r--------~~--~--------~--~-----____r.' -e. 7.E:XHil.BIT 7 II Hershey Stnck .-2QO 1 ('.··O. 0.:::::-.

49 ~S ~..ri.! tCfl. 4.'..0.6 4".1:. '.. __ .. B85 .8' :. .""·/0. '~.1 1.." _.3.:Q' [G. ".229'·0. .'7 '_ A+' N/····A·· . (}redflt 'r:ati'rl g: t)'·:·S5-.' 3'543 'j. ~.' " -. 7..' .c~r :30 yea. I _ • .." J :S(aoK~p.C~· 9/17/20'02.2'1 21'1. 4/::"9:'" 8/1' 51201 .. 1l':t~2~9' :1q ye. s. .4.2.1 .f debt~($'m'i'llirons<) . -.. iii.5iyear 3~38o/Q '9117/2002 .harH~ . v.2:ao/~ 5:0"'.5/2'(12.:~ '..2~ 211 :5/. ' o'~>0:"-.auf:[standl'ng (mifllons) BonK value: (). .. 'Prlce 10. w 1s·55..' No de¥}~t ~.'3. ·S.5 .". : ~: 'S"'S'S'.20..'01.70AAA f\ 6'"O~ v' . Mattur~ty lP'tiGS '1' 1'J'~7 Yield IIU-.EXH'IBIT 8 Bet-a.r 4..•i:1V:/Q ~~9/.: .'19.lar~.25.I 51·... 2.:~ 1'3'Al 2 .1 '.9: .. .se L Matu~ity Prib·Q 1. o 1'9~5~60 502. .8: '5: .. · 0.4 5 7'3' 'f!:' . 8J19/2002. .

..ft:A . .taxss B'1~7.. "_':.A':2 : .S· .1: 15.·l .8 6'it~M:.: 'v t.H~ 19Eh7' .$ ·ffi.=. ~ .~ .o ~~II'Y ".illS'" 2.u~'v.: ~. assete :30. .-'QI s ~ >Sl9 "'':.-:.~o...2177 a.Je. £5'1.-.9~ "-5'~'~' .'.~· Gross ..l:it" and 'e-qui pm ant..~ .. '~80.:7' 3.a· '7··.t _ ].g .Qn.0 2~i7-."ii' J.r" I J . . 'n.87B:2.9..!.91.t1~ 'I' -.:.:S .1 Aet::.'Q· '1-:563· .9..-.£l:" 1'1M~2 4iri":"]! "l _.(/I..i'-"" '1' '-7'5-:.·'U'O..oI' .2.'a64~. .~ "-'.. " _ 1'.'.. ..~.•".Q~'~*-tJ~~~ P retax lneo me.2 2\57.. '-7' ~.C}o rpu.~09a.b~i Ht1Je:S: zas i.2' 34£>.'.~ 8301·.3.2:7'.1' i-(} ~'-" :$ '11' .~~ ....g a4S:.'1 34@..t7 .rued HabiHti~e1S: Shol1~t~rm bt de 'Total current Ih9b i·1t] as i Lon~.2:._ a ~. 2". ~-151'0'5 "1"'. ~T"ij es. H~j[£h~M Foods . Prep e.· ~.~ v -'. .~.nd cas h 'e"q.-" 8-":'1u13'< ....'6.'3.321.~~~'~~ de 6' .Y. ~ . •• 2S~t1 7JS+ ~06.clfl. -'. 1~[~.)6'·~O:'.6 ~tb'~..' .~j?48~O 1 .sellli~.'..2 s rss 9 " 3c1'. .{)ckho~der~equny ~ia.~07 "1.tE!!111 _~'J4.i:II7' fi .0.~a jQ'7:!n 1 u_ .~'~ m.Q ~UU!l~ . -..2.l 18'4..'6" (t. n 'Tbta~1'i.34.~u. .:~' 'I. .!t.'..paye...' • -4'q5. '_ ssss '1 0:2. ii 5:'1. ru.®xpens.f1-5 m: '1.: _ "_.5.:.0 s .2·r1~. '-7' ' : ~:4 t:i!:~ . .-·fI~- $·3 r'~~Hl9.{~· ..'lifed lnc orne .£... assets ' • _..' S·. · ~u-.. ·.0 . L'_" .~'48-":'ii 1_ !i'~~ . : Ir .p roflt .::n AI :~ ilY..· :Hitter .:" .' ~4a.7' 300..." .'1 Q'~"1' '7~:~ '. : .1 ·00:5".(.1 l .t.5 1-":0'..a1bn~tres acrHJ:~:quity .-term debt Other· .2':272'7 ]~ I! • ·2~.0 .' ' 1i534.ai\ents ·AdQ.. 3 ~< .1 .'0'·" 46S.'1 ".:.7· 7·12:"kl 1J3~~:6: -. ~~o)l.on salle .~ 2·'~ ~~so .B88.0 I '76.6..~2 7.". 1·3'-"3.7 - O~he r tang'tb. ~. .·'0 .4:.~l.) 5..'Rwk~tir1~h aJtd ad m IOJ ~.}. S-"· ~ Total S:t..t~ng·lneoms Ga~ (loss) . .lrG'""tU..\rP /I~51' -=m~ 'w 1I1'~ '0 i52·.... -0'-" " _~ .bil:El s t"46...n'ff: :~:usin ss n e Ear~ ilri~gs·befor~:i~tere8.~B. llIi' ._..~.10(12: .2 n ~): ... ..·O"".f:~.• [!f _ r ~'.. _.9 '3. .7 Opela.2 '-. " a .J!. - - N~-t incorne Gas'h a... '" . 'Total as'setS: $.~_t49.:'-~..o6.4 077·0·' !Q 814.'l' "1' 'U''''t. P\.. 4-12-..~.p ".!1 net 1'j:o:~H .Utti~ ...bB:itl~s D ere.I': .:..< . ". .a 527..3· . i.• 3" .~ 6_.5 rrs» .I' "...5 ~..craf'va t .9~ ...~.~ 'oOg.:_ 8260 s:n. .~ Case ··44 ..~3n2.- I'" $3.-'1'_ "I -) u assa ~ '9"'7\19.. .: .6: asas 761~i9 • .1 '36.f'\-: '.t: Place _'3'9 ..0 ~a7':9. Sal~'s 'Cost :of· s.A. -5Q5.~' 21"-2.r ad.c. f.•~ .@~·e.2: ~27.::. 1. '.. ~5-5··'Z.~ ) ~~ I • ~.f" .. :-.~~.'. - 1_ ~~".a '1'Cil~' ~nt-e rest: .·f~ .«: S" 2' flll:" ' '2·.fty~ '·p)ll. .. .:5.·-.. Inoome taxes 41~L7 [J'-':VO.9... 880. y :. :'. -~ : ACG9Urits.j:.. ...91.... ' $4 43 -..~'{a·· ~ . 6"6(. L• 48.S~ 1t04.Ipng~term ~ ia.j'3 .i.~':' I nve rita ri:~s Other ..curre nt assets Total . '1' . '1' :j .r).5 -224... . $4~ 431.ft '1.' •. 34.©tJrHt~ rene:i vable t._:--tf!l~~ - ~i!S. m htl t~ S Vilec.1.468.. . •• $..l~.1 !'~ . (joodwj. :82~~7 16aO..7 .raar€l- ~ . ~ .4 . ..tajrreri'i..s. 327...i. 0.59..'4-' ~"' ' .

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