HERSHEY, Pa., May 04, 2010 (BUSINESS WIRE) --The Hershey Company (NYSE: HSY):

• Pamela Arway elected to Board of Directors
• Board of Directors Declares Quarterly Dividend of $0.32 on the Common Stock; $0.29 on the Class B Common Stock
• Company announces supply chain assessment as part of strategic plan update
• Reaffirms 2010 outlook of at least 6% net sales growth and an increase in adjusted earnings per share-diluted of low-to-mid-teens on a percentage basis versus 2009

The Hershey Company (NYSE: HSY) today held its Annual Meeting of Stockholders at which Pamela Arway was elected as a new director. The Company also announced that the Board declared a quarterly dividend of $0.32 on the Common Stock. In addition, the Board declared a dividend of $0.29 on the Class B Common Stock. The dividends are payable June 15, 2010, to stockholders of record May 25, 2010.

Arway, 56, will serve on the Audit Committee and the Compensation and Executive Organization Committee. Ms. Arway retired in October 2008 as Senior Advisor to the Chairman and Chief Executive Officer of American Express Company, Inc., New York, New York, a global payments, network and travel company. Throughout her twenty-one year career with American Express Company, Inc., Ms. Arway gained experience in the areas of finance, marketing, international business, government affairs, consumer products and human resources. She has been a director of DaVita, Inc., since July 2009. Ms. Arway holds a bachelor's degree in languages from Memorial University of Newfoundland and a Masters of Business Administration degree in marketing from Queen's University, Kingston, Ontario.

"We are pleased to have a leader of Pam's caliber join the Board," said James Nevels, Chairman of the Board of Directors, The Hershey Company. "Her experience in finance, emerging markets, consumer products and marketing will be of immense value to The Hershey Company as we continue to win in the global marketplace."

In his presentation to stockholders, David J. West, President and CEO, said that the Company was evaluating its supply chain network as part of a periodic update of Hershey's strategic plan. "We are performing an in-depth assessment of our supply chain. We must ensure that we continue to have a cost-effective, flexible supply chain that enables us to remain competitive in the global marketplace as we seek to meet the needs of our consumers and customers," West said. "While we have not made any decisions, as part of this assessment, we are looking to increase capacity utilization and modernize manufacturing capabilities. This could require a capital investment in our manufacturing network."

The Company also reaffirmed the 2010 outlook that it provided on April 22, 2010. Specifically, 2010 net sales are expected to increase at least 6 percent, including an approximate one point benefit from foreign currency exchange rates. The Company also expects to achieve gross and adjusted income before interest and income taxes (EBIT) margin expansion that will result in a low-to-mid-teens increase in adjusted earnings per share-diluted on a percentage basis versus 2009.

Note: In this release, Hershey references income measures excluding certain items. These non-GAAP financial measures are used in evaluating results of operations for internal purposes. These non-GAAP measures are not intended to replace the presentation of financial results in accordance with GAAP. Rather, the Company believes exclusion of such items provides additional information to investors to facilitate the comparison of past and present operations.

In 2009, the Company recorded GAAP charges, including non-cash pension settlement charges, of $99.1 million, or $0.27 per share-diluted, attributable to the GSCT program. Except for possible non-cash pension settlement charges, the Company does not expect any significant charges related to the GSCT program in 2010.

Below is a reconciliation of GAAP and non-GAAP items to the Company's 2009 adjusted earnings per share-diluted:

*Excludes business realignment and impairment charges.

Possible adjustments to exclude business realignment charges for 2010 are not known at this time; therefore, the Company is unable to provide a reconciliation of adjusted earnings per share-diluted for 2010.

Safe Harbor Statement

This release contains statements that are forward-looking. These statements are made based upon current expectations that are subject to risk and uncertainty. Actual results may differ materially from those contained in the forward-looking statements. Factors that could cause results to differ materially include, but are not limited to: issues or concerns related to the quality and safety of our products, ingredients or packaging; changes in raw material and other costs; market demand for our new and existing products; increased marketplace competition; selling price increases, including volume declines associated with pricing elasticity; disruption to our supply chain; failure to successfully execute acquisitions, divestitures and joint ventures; changes in governmental laws and regulations, including taxes; political, economic, and/or financial market conditions; risks and uncertainties related to our international operations; disruptions, failures or security breaches of our information technology infrastructure; the impact of future developments related to the investigation by government regulators of alleged pricing practices by members of the confectionery industry, including risks of subsequent litigation or further government action; pension cost factors, such as actuarial assumptions, market performance and employee retirement decisions and funding requirements; and such other matters as discussed in our Annual Report on Form 10-K for 2009. All information in this press release is as of May 4, 2010. The Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations.

SOURCE: The Hershey Company

The Hershey Company
FINANCIAL CONTACT:
Mark Pogharian, 717-534-7556
or
MEDIA CONTACT:
Kirk Saville, 717-534-7641