The General Mills (NYSE: GIS) Board of Directors today approved a quarterly dividend at the prevailing rate of $.275 per share, payable Nov. 1, 2000, to shareholders of record on Oct. 10, 2000. General Mills and its predecessor company have now paid uninterrupted dividends without reduction for 102 years.

General Mills Chairman and Chief Executive Officer Steve Sanger told shareholders attending the company’s 72nd annual meeting, held today in Minneapolis, that, “General Mills delivered great performance in fiscal 2000, with superior topline growth and double-digit growth in earnings per share. That momentum is continuing for our current businesses in this fiscal year. And we’re very excited about the acquisition of Pillsbury, because it fits so very well with the successful growth strategies we’ve already been following. We believe this acquisition will improve our prospects for creating significant long-term value for General Mills shareholders, because we believe that combining these businesses will accelerate our future sales and earnings growth.”

In actions at the meeting, shareholders re-elected the 11 directors nominated, ratified the appointment of KPMG LLP as the company’s independent auditor, and approved the amended and restated executive incentive plan. Two shareholder proposals, concerning food biotechnology and global labor standards, were not approved.

This press release contains forward-looking statements based on management’s current expectations and assumptions. Such statements are subject to certain risks and uncertainties that could cause actual results to differ. In particular, our predictions about the Pillsbury acquisition could be affected by regulatory and stockholder approvals; integration problems; failure to achieve synergies; unanticipated liabilities; inexperience in new business lines; and changes in the competitive environment. In addition, our future results also could be affected by a variety of factors such as: competitive dynamics in the U.S. ready-to-eat cereal market, including pricing and promotional spending levels by competitors; the impact of competitive products and pricing; product development; actions of competitors other than as described above; acquisitions or disposals of business assets; changes in capital structure; changes in laws and regulations, including changes in accounting standards; customer demand; effectiveness of advertising and marketing spending or programs; consumer perception of health-related issues; economic conditions, including currency rate fluctuations. The company undertakes no obligation to publicly revise any forward-looking statements to reflect future events or circumstances.

General Mills filed a preliminary proxy statement on Schedule 14A with the United States Securities and Exchange Commission (the “SEC“) on August 22, 2000 in connection with two proposals relating to General Mills’ proposed acquisition of Pillsbury to be submitted to General Mills stockholders for approval. Stockholders of General Mills are urged to read the definitive proxy statement when it becomes available because it will contain important information. Investors and stockholders may obtain a free copy of the definitive proxy statement when it becomes available at the SEC’s website at http://www.sec.gov. General Mills and its directors and executive officers may be deemed to be participants in the solicitation of proxies to approve the proposals relating to the proposed transaction. The preliminary proxy statement on Schedule 14A filed with the SEC contains information on General Mills directors’ and executive officers’ ownership of General Mills common stock.