HERSHEY, Pa., July 25 /PRNewswire-FirstCall/ -- The Hershey Company (NYSE: HSY), a leading snack food marketer and the largest North American confectionery company, today announced it has entered into an agreement to acquire Scharffen Berger Chocolate Maker, Inc., one of the fastest-growing premium dark chocolate companies in the United States. Based in Berkeley, California, Scharffen Berger is known for its high-cacao content, signature dark chocolate bars and baking products sold online and in a broad range of outlets, including specialty retailers, natural food stores and gourmet centers across the country. Scharffen Berger also owns and operates three specialty stores located in New York City, Berkeley, and San Francisco.

"The premium chocolate segment represents a strategic opportunity for Hershey based on increasing consumer demand for distinctive, high-end chocolate and for the antioxidant benefits of dark chocolate," said Richard H. Lenny, Chairman, President and Chief Executive Officer, The Hershey Company. "Scharffen Berger's exceptional, on-trend products and entrepreneurial spirit have made it one of the fastest-growing companies in the $1.7 billion premium chocolate segment. We look forward to leveraging our extensive distribution network and technology to broaden consumer reach and expand our leadership position in the confectionery market."

"This is a tremendous opportunity for Scharffen Berger," said John Scharffenberger, Co-Founder, Scharffen Berger Chocolate Maker, Inc. "With Hershey's resources we can accelerate our growth and leadership in the premium chocolate segment. Hershey's heritage, values and deep commitment to social responsibility are a perfect match for Scharffen Berger. The acquisition will enable us to preserve the artisanal roots that have made Scharffen Berger so successful, while introducing a wider range of consumers to our unsurpassed, high-quality dark chocolate."

The acquisition is expected to be completed during the third quarter of 2005 and is subject to the customary closing conditions.

About The Hershey Company

The Hershey Company (NYSE: HSY) is a leading snack food company and the largest North American manufacturer of quality chocolate and non-chocolate confectionery products. With revenues of over $4 billion and more than 13,000 employees worldwide, The Hershey Company markets such well-known brands as Hershey's, Reese's, Hershey's Kisses, Kit Kat, Almond Joy, Mounds, Jolly Rancher, Twizzlers, Ice Breakers, and Mauna Loa, as well as innovative new products such as Take 5 candy bar and Hershey's cookies. In addition to its traditional confectionery products, Hershey offers a range of products specifically developed to address the nutritional interests of today's health- conscious consumer. These products include sugar-free Hershey's, Reese's and York candies, as well as Hershey's SmartZone bars for people seeking balanced nutrition. It also markets Hershey's cocoa, Hershey's syrup and other branded baking ingredients, toppings and beverages. Visit us at http://www.hersheynewsroom.com.

About Scharffen Berger Chocolate Maker, Inc.

Founded in Berkeley, CA in 1996 by John Scharffenberger and Dr. Robert Steinberg, Scharffen Berger Chocolate Maker is an artisanal American chocolate company. The company sources the best cacao beans, roasts and grinds them in small batches in vintage European equipment, and creates blends that make the world's finest tasting premium chocolate. The distinctive chocolate, like fine wine, possesses complexity, distinct fruitiness, balance, intense flavor, and a lingering finish.

Scharffen Berger products are available on the web at http://www.scharffenberger.com and at the Scharffen Berger stores in Berkeley, San Francisco, CA, Healdsburg, CA and New York City. Select products are also available at fine specialty stores nationwide with a limited international presence.

Safe Harbor Statement

This release contains statements which are forward-looking. These statements are made based upon current expectations which are subject to risk and uncertainty. Actual results may differ materially from those contained in the forward-looking statements. Factors which could cause results to differ materially include, but are not limited to: changes in the business environment, including actions of competitors and changes in consumer preferences; customer and consumer response to selling price increases; changes in governmental laws and regulations, including taxes; market demand for new and existing products; changes in raw material and other costs; pension cost factors such as actuarial assumptions, market performance, and employee retirement decisions; adequacy of the Company's bad debt reserve; the Company's ability to implement and generate expected ongoing annual savings from its program to advance its value-enhancing strategy; and the Company's ability to implement improvements to and reduce costs associated with its supply chain, as discussed in the Company's Annual Report on Form 10-K for 2004.

SOURCE  The Hershey Company
    -0-                             07/25/2005
    /CONTACT:  Media: Stephanie L. Moritz, +1-717-534-7631, or Financial:
James A. Edris, +1-717-534-7556, both of The Hershey Company/
    /Web site:  http://www.scharffenberger.com /
    /Web site:  http://www.hersheys.com
                http://www.hersheynewsroom.com /
    (HSY)

CO:  The Hershey Company; Scharffen Berger Chocolate Maker, Inc.
ST:  Pennsylvania, California
IN:  FOD
SU:  TNM

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7741 07/25/2005 17:27 EDT http://www.prnewswire.com