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“We’re off to a strong start as a focused confectionery business and expect first half revenues above our goal range and good progress on margins. These results will demonstrate the strength of our total confectionery platform, the benefits of the significant investments made in recent years and the potential of our business. Despite the challenging economic outlook and further increases in input costs in the second half, we are confident of a successful outcome for 2008, ” said Cadbury CEO Todd Stitzer.

The company expects strong revenue in the first half with second quarter growth likely to be modestly higher than the 7% like-for-like growth reported for the first quarter. Good progress is being made on margins despite a further increase in marketing investment. Price increases have been implemented across the majority of our markets and these are recovering significant increases in input costs. Margins in the first half will benefit from positive product mix and previously announced “Vision into Action” cost reduction initiatives including downsizing central and regional functions and outsourcing non-core activities.

In Britain, Ireland, the Middle East and Africa, revenue growth has been driven by higher marketing and double-digit growth from the emerging market businesses. Profit and margin progress in the first half will be strong with margins benefiting from a further improvement in Nigeria, cost reduction initiatives and lower one-off costs in Britain and Ireland. In Britain, revenue growth is expected to be ahead of the confectionery market which is ahead 2% year-to-date. The exit from some less profitable promotions has been more than offset by good growth in core brands, including Cadbury Dairy Milk.

In Europe, planned route to market changes in Russia and Turkey and lower market growth in Southern Europe have impacted performance. Gum growth remains strong reflecting the combination of market growth across the region and share gains in Southern Europe. In Turkey, Cadbury is integrating its existing distribution infrastructure with the Intergum business and revenues in the half are being impacted by the exit from a number of distribution arrangements. Overall, margins are expected to be lower in the region in the first half given the route to market reorganisation.

In the US, the gum market is ahead 8% year to date, benefiting from the 2007 price increases and continued high levels of innovation activity. Growth continues to be driven by our Trident and Stride brands.

In Asia Pacific, revenue growth in the half has benefited from an improved performance from confectionery in Australia and strong double-digit growth in emerging markets. In Australia beverages, revenue growth has strengthened in the last few months and in emerging markets, India has had another excellent half with good performances in all categories. * Outlook* For the first half of 2008, the company expects revenue growth above the top end of its 4% - 6% goal range and margin growth of at least 150 basis points (at constant exchange rates). We expect our commodity cost increases for the year to remain in the 5% - 6% range, however, these increases are now expected to be weighted toward the second half.

Following the completion of the demerger on 7 May 2008, Americas Beverages will be classified as a discontinued operation and the results will not be included within the continuing operations of Cadbury plc.