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NORTHFIELD, Ill., Sept. 9 /PRNewswire-FirstCall/ -- The Board of Directors of Kraft Foods Inc. has declared a regular quarterly dividend of $0.29 per common share of Class A stock, an increase of 7.4 percent from the previous quarter's dividend. This dividend is payable on Oct. 8, 2008, to stockholders of record as of Sept. 24, 2008.

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"As our top-line momentum begins to translate to bottom-line growth, we're increasing our dividend consistent with our long-term earnings growth guidance," said Irene Rosenfeld, Chairman and Chief Executive Officer. "We're confident in our progress, and despite a challenging economic environment, our results demonstrate that we can cover higher costs, strengthen brand equities and deliver improved financial results."

For more than a century, Kraft (http://www.kraft.com/) has offered delicious foods and beverages that fit the way consumers live. Millions of times a day in more than 150 countries, consumers reach for their favorite Kraft brands, including nine with revenues exceeding $1 billion: Kraft cheeses, dinners and dressings; Oscar Mayer meats; Philadelphia cream cheese; Maxwell House coffee; Nabisco cookies and crackers and its Oreo brand; Jacobs coffees; Milka chocolates; and LU biscuits. Kraft is one of the world's largest food and beverage companies with annual revenues exceeding $37 billion, more than 100,000 employees and more than 180 manufacturing and processing facilities globally. The company is a member of the Standard & Poor's 500 index as well as the Dow Jones Sustainability Index and Ethibel Sustainability Index.

Forward-Looking Statements

This press release contains forward-looking statements regarding the payable date of the quarterly dividend; that our top-line momentum is beginning to translate into bottom-line growth; that the quarterly dividend is consistent with our long-term earnings growth guidance; that we're confident in our progress; and that our results demonstrate that we can cover higher costs, strengthen brand equities and deliver improved financial results. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those predicted in any such forward-looking statements. Such factors, include, but are not limited to, continued higher input costs, pricing actions, increased competition, increased costs of sales, our ability to realize the expected cost, unexpected safety or manufacturing issues, unanticipated expenses such as litigation or legal settlement expenses, a shift in our product mix to lower margin offerings and risks from operating internationally. For additional information on these and other factors that could affect our forward-looking statements, see our filings with the SEC, including our most recently filed Annual Report on Form 10-K/A and subsequent reports on Forms 10-Q and 8-K. We disclaim and do not undertake any obligation to update or revise any forward- looking statement in this press release.