CINCINNATI, Sept. 12 /PRNewswire-FirstCall/ -- Chiquita Brands International, Inc. (NYSE:CQB) today provided an intraquarter update for the third quarter 2007, including Chiquita banana and Fresh Express retail value- added salad prices and volumes for July-August 2007. The company also provided further clarity on its outlook for the balance of 2007, as well as an update on expected impacts from Hurricanes Dean and Felix.

The company reported meaningful year-over-year banana price increases in July and August in all markets. In addition, in its retail value-added salads business, net revenue per case and volume rose modestly year-over-year, despite continuing sluggish performance in the category overall.

"As a result of these trends, we anticipate a slight improvement in the company's net sales in the third quarter compared to the same period in 2006, but margins will be squeezed as cost pressures continue," said Fernando Aguirre, chairman and chief executive officer. "Despite the near-term issues, we believe we are on the right track and expect to report a greater level of year-on-year improvement in the fourth quarter, which would continue the positive year-on-year trend. We remain confident in our strategy to generate sustainable, profitable growth by delivering innovative, higher-margin products and building a high-performance organization."

As previously disclosed, the third quarter will reflect both higher year- over-year cost of sales, due to higher industry and other operating costs, and increased selling, general and administrative expenses, including higher new product introduction and brand support investments and higher food safety, marketing and merchandising expenses to drive recovery in the value-added salads category. As a result, the company expects that its total operating expenses will be approximately $30 million higher than in the third quarter 2006, and it continues to expect a modest year-over-year improvement in its third quarter operating results.

    Banana Segment

                       Year-over-Year Percentage Change(1)
                      July-August 2007 vs. July-August 2006

                                                                   % of Total
    CHIQUITA BANANAS               Pricing        Volume(2)        Volume Sold

    North America                    +5%            +2%                 45%

    Core European Markets(3)
         U.S. dollar basis(4)       +17%             0%                 35%
         Local currency basis       +10%

    Asia Pacific and the Middle
     East(5)                        +12%            -4%                 15%

    Trading Markets                 +43%           -72%                  5%


    (1)  These statistics may not be indicative of future results.
    (2)  Total volume sold includes all banana varieties, such as Chiquita to
         Go, Chiquita minis, organic bananas and plantains.
    (3)  The company's "core" European markets include the member states of
         the European Union (except new entrants Romania and Bulgaria, which
         continue to be reported in "trading" markets), Switzerland, Norway
         and Iceland.
    (4)  Prices on a U.S. dollar basis do not include the impact of hedging.
    (5)  In this region, the company primarily operates through joint
         ventures, and most business is invoiced in U.S. dollars.

North American banana pricing was up 5 percent year-over-year, reflecting increases in base contract prices, higher year-on-year surcharges linked to a third-party fuel price index, and higher market pricing on non-contract volumes. Banana volume sold in the region rose 2 percent, as a result of distribution gains.

Banana prices in the company's core European markets were up 10 percent year-on-year on a local currency basis (up 17 percent on a U.S. dollar basis), reflecting favorable comparisons to the year-ago quarter when excessive heat in Europe depressed demand for bananas and the market had excess supply. Volume sold in the core European markets was steady year-over-year.

In Asia Pacific and the Middle East, pricing rose 12 percent year-on-year on a U.S. dollar basis, primarily as a result of significant improvement in local pricing in Japan, partially offset by unfavorable dollar-yen exchange rates. Volume in this region fell by 4 percent year-over-year, primarily related to continuing supply constraints in the Philippines, which resulted in lower yields of premium-quality fruit.

In the company's trading markets, which consist primarily of European and Mediterranean countries that do not belong to the European Union, pricing rose 43 percent year-over-year, while the company's volume in this region declined 72 percent, reflecting favorable comparisons to the year-ago quarter when the market was significantly oversupplied.

Expected Impact from Hurricanes Dean and Felix

In late August, Hurricane Dean damaged important European sources of bananas in the Caribbean, including Martinique, Guadeloupe, St. Lucia, Dominica and Jamaica. The company does not source from these areas; however, the banana industry overall has lost an estimated 300,000 to 400,000 boxes per week of normal supply, or approximately 6 to 8 percent of the five million boxes of bananas shipped weekly to meet consumer demand in the European Union. This shortfall, and the corresponding favorable pricing environment, is likely to affect the European market for six to nine months, or longer, depending on the extent of the damage.

In early September, Hurricane Felix made landfall in Central America. The company believes that damage to Chiquita's sources of supply has been minimal.

    Salads and Healthy Snacks Segment

                       Year-over-Year Percentage Change(1)
                      July-August 2007 vs. July-August 2006

    FRESH EXPRESS RETAIL
    VALUE-ADDED SALADS        Net Revenue Per Case         Volume

    North America                      +3%                   +1%


    (1)  These statistics may not be indicative of future results.

In the Salads and Healthy Snacks segment, total volume of retail value- added salads was up 1 percent and net revenue per case was up 3 percent year- over-year in the two-month period. The company remains the only brand to report year-on-year growth, in the face of continuing soft overall category performance.

About Chiquita Brands International, Inc.

With annual revenues of approximately $4.5 billion, Chiquita Brands International, Inc. (NYSE:CQB) is a leading international marketer and distributor of high-quality fresh and value-added food products -- from energy-rich bananas and other fruits to nutritious blends of convenient green salads. The company's products and services are designed to win the hearts and smiles of the world's consumers by helping them enjoy healthy fresh foods. The company markets its products under the Chiquita(R) and Fresh Express(R) premium brands and other related trademarks. Chiquita employs approximately 25,000 people operating in more than 70 countries worldwide. For more information, please visit our web site at www.chiquita.com.

This press release contains certain statements that are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Chiquita, including the impact of the 2006 conversion to a tariff-only banana import regime in the European Union; unusual weather conditions; industry and competitive conditions; financing; product recalls affecting the industry; the customary risks experienced by global food companies, such as the impact of product and commodity prices, food safety, currency exchange rate fluctuations, government regulations, labor relations, taxes, crop risks, political instability and terrorism; and the outcome of pending governmental investigations and claims involving the company.

Any forward-looking statements made in this press release speak as of the date made and are not guarantees of future performance. Actual results or developments may differ materially from the expectations expressed or implied in the forward-looking statements, and the company undertakes no obligation to update any such statements. Additional information on factors that could influence Chiquita's financial results is included in its SEC filings, including its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

Chiquita Brands International, Inc.

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