Kraft Foods

Dear Friends: I have received a number of e-mails regarding Kraft Foods and the split-off of Post Cereals.

Today is the deadline to participate. The terms of the offer allow Kraft shareholders to exchange a to-be-determined quantity of Kraft shares (but no more than 66%) for a to-be-determined quantity of RalCorp shares (formerly Ralston-Purina).

This split-off is taking place in conjunction with the transfer of Kraft 's Post Cereal divison to RalCorp.

We have decided not to participate in this exchange.

We like Kraft and want to keep holding that stock.

I made that decision and have discussed it with others in our line of work who all agree it is the right decision.

I did have a momentary pang of regret when I read about Post Cereal.

My first real job was at a company called EF Hutton. Edward F Hutton married Marjorie Merriweather Post, daughter of CW Post (founder of the Postum Cereal Company) and the richest girl in America (before Doris Duke). Together Hutton & Post founded General Foods (the Post holding company that included Birdseye foods and was later acquired by Philip Morris and then merged into Kraft), parented the actress Dina Merrill (who took her stage name from her domineering father's biggest competitor), and built the florida estate Mar-A-lago (now owned by Donald Trump) before they divorced in 1935.

HOWEVER, good stories and personal sentiment cannot pass for reasoned investment judgement.

We think Kraft is the superior company and intend to stand fast with that holding.

Scott