Mastellone Hermanos S.A. has restructured its financial debt in Argentina

Mastellone Hermanos S.A. (?Mastellone?), leading processor and distributor of fresh dairy products in Argentina, has successfully restructured 97,8% of its existing unsecured financial debt (the ?Existing Debt?), refinancing (i) USD 103,8 million of its existing unsecured debt originally issued to commercial banks, and (ii) USD 217,9 million principal amount of its 11-3/4% Senior Notes due 2008 (the ?Existing Notes?). Notwithstanding that Mastellone was entitled to reestructure the Existing Debt by means of an acuerdo preventivo extrajudicial (?APE?), due to the high level of acceptance to its offer (approximately 97,8%), it decided not to proceed with the APE.

Mastellone?s unsecured financial creditors could elect between (i) a cash tender offer for up to an amount of USD85 million of principal, (ii) new collateralized senior floating rate amortizing debt due 2011 (?Exchange Floating Rate Debt?), and (iii) new 8% collateralized senior notes due 2012 (?Exchange Notes?).

The Exchange Floating Rate Debt and the Exchange Notes are secured by a guarantee by three of Mastellone?s subsidiaries and a pledge of a number of shares of Mastellone?s capital stock equal to 49%.

The terms and conditions of the Existing Notes were amended, with due consent of the majority of holders of said notes.

Banc of America Securities LLC, acting as dealer manager, was advised with respect to Argentine law by Bruchou, Fernández Madero, Lombardi & Mitrani through partner Carlos Lombardi and associates Paula González Silvestrín and Agustina Kassai, and with respect to certain Argentine tax matters, by partner Matías Olivero Vila and associate Javier Martín Lemma.

McGuire Woods LLP acted as legal counsel to the dealer manager with respect to United States law, through partner Lee Ann Rooney and associate Jason H. Scott.

Mastellone was advised in Argentina by Cibils I Labougle I Ibañez, through partners Joaquin Ibañez and Joaquin Labougle, and associate Cecilia de Achával.

Shearman & Sterling gave counsel to Mastellone with respect to United States law, through partner John Millard and associate Catherine R. Jones.

Bondholders were advised in the US by Proskauer Rose LLP, through partners Peter Samuels and Jack Jackson, and associate Frank Lopez.

Allende & Brea gave counsel to Bondholders and Banks (Societe Generale, Hypo Vereins Und Vestbank; Dresdner Bank, Banco Ciudad, Banco Nacion, Calyon and Rabobank, among others)with respect to Argentine law, through partners Diego Botana, Carlos M. Melhem and Pablo G. Louge.