HERSHEY, Pa., May 22 /PRNewswire-FirstCall/ -- Hershey Foods Corporation today announced plans to build a new distribution center in the Gateway Commerce Center in Madison County, Ill. The 1.1 million-square-foot distribution center is expected to be operational by March 2004.

Hershey Foods will build the distribution center on 90 acres of land at Gateway, a 2,300-acre business park being developed by St. Louis, Mo.-based TRiSTAR Business Communities. Hershey's Midwest distribution center joins three other high-performance warehouse sites as part of the Company's strategy to improve customer service and implement a low-cost supply chain. The other centers are located in Hershey, Pa., Atlanta, Ga., and Redlands, Calif.

The Gateway facility will be operated by Genco Distribution System, a third-party logistics provider based in Pittsburgh, Pa, and will employ more than 200 people. Hershey also selected Waukesha, Wis.-based Red Prairie's Warehouse Management System, DM Plus(R), and labor management package, CALM(R), as the technology enabler for superior service and efficiency. The Korte Company of Highland, Ill., will serve as the design/build contractor on the structure which will feature a 39-foot ceiling, 160 dock doors, and full temperature control.

"This is the next key step in optimizing our U.S. distribution network," said Bill Turner, vice president, logistics and customer service for Hershey Foods. "A number of months ago, we set out to redefine the supply chain network strategy for our products and markets. After an extensive network modeling and site selection effort, it became clear that the St. Louis area, in general, and Gateway Commerce Center, in particular, would be the optimal site for our facility."

"We particularly would like to thank Mayor Gary Niebur of Edwardsville, Ill., and Jack Lavin, director of the Illinois Department of Community and Economic Opportunity (DCEO), for their assistance," Turner continued. "Their efforts, combined with Gateway's central location, excellent transportation infrastructure, and abundant and affordable workforce, enabled the park to stand out from the crowd."

Hershey Foods Corp. (NYSE: HSY) is the leading North American manufacturer of quality chocolate, non-chocolate confectionary and chocolate-related grocery products.

Some of the company's most popular products include HERSHEY(R)'S chocolate and chocolate with almond bars; HERSHEY(R)'S KISSES(R) Brand chocolates, REESE'S(R) peanut butter cups and HERSHEY(R)'S syrup. The company also is a market leader in the gum and mint category, with such well-known brands as BREATH SAVERS(R) and BUBBLE YUM(R).

SOURCE Hershey Foods Corporation
CONTACT: Christine M. Dugan of Hershey Foods Corporation, +1-717-508-3238/