Important Notice: Effective January 1, 2002, Nestlï¿½ Smarties, Aero, Kit Kat, Coffee Crisp, and Mirage will no longer be manufactured in a peanut/nut-free environment

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Effective January 1, 2002, Nestlï¿½ Smarties, Aero, Kit Kat, Coffee Crisp, and Mirage will no longer be manufactured in a peanut/nut-free environment.ï¿½ To ensure Canadians with peanut/nut allergies are sensitized to this change, an allergy alert will start to be added to packaging labels of Nestlï¿½ Smarties, Aero, Kit Kat, Coffee Crisp, and Mirage over the next eight months.ï¿½ As of January 1, 2002, the allergy alert will appear on all packages and Nestlï¿½ will allow peanut/nuts into its Canadian chocolate factory.

After very thoughtful consideration, we have come to the conclusion that we are unable to continue to manufacture Nestlï¿½ Smarties, Aero, Kit Kat, Coffee Crisp, and Mirage in a peanut/nut-free environment, effective January 1, 2002.ï¿½ To ensure consumers with peanut/nut allergies are sensitized to the change, we will declare an allergy alert on our Nestlï¿½ Smarties, Aero, Kit Kat, Coffee Crisp, and Mirage chocolate products beginning in April 2001.ï¿½ By the end of 2001, the allergy alert will appear on all packages of Nestlï¿½ Smarties, Aero, Kit Kat, Coffee Crisp, and Mirage, and we will no longer guarantee a peanut/nut-free manufacturing environment.

We know this decision impacts your chocolate purchases and regret the disappointment this causes, especially for children.ï¿½ This was a difficult business decision that was not taken lightly.ï¿½ This decision allows us the flexibility to meet growing consumer demand for peanut/nut chocolate products, and, as a result strengthens the position of our Canadian chocolate factory and its 500 employees.ï¿½ We considered other potential solutions including segregating a peanut/nut-free section of our factory, however, it would not meet our standards for a peanut/nut-free manufacturing environment.

To ensure the safety of our consumers, weï¿½re making every effort to inform Canadians with peanut/nut allergies, along with their friends and family, eight months in advance of the change in January 2002.ï¿½ To this end, weï¿½re directly advising:

ï¿½ members of the Anaphylaxis Network of Canada, Allergy Asthma Information Association, Association Quï¿½bï¿½coise des Allergies Alimentaires, Medic Alert, and the Canadian Society of Allergy and Clinical Immunology

ï¿½ public, separate and private schools across the country

ï¿½ Canadian general/family physicians and pediatricians

ï¿½ Nestlï¿½ Canadaï¿½s retail customers

In addition, weï¿½re advising: the general public through a news release to media across the country; consumers through Nestlï¿½ Canadaï¿½s web site and toll-free telephone line; government; and medical, daycare, camping, food bank, and industry associations.

We would appreciate it if you can please pass this information on to anyone else who may be concerned about peanut/nut allergies.

Thank you for your understanding.ï¿½ï¿½ For further information, please contact us at:

Nestlï¿½ Consumer Services

Box/C.P. 700

Pickering ON

L1V 3T3

web site: www.nestle.ca

Fax (905) 837-5009

Tel.: 1 800 387-4636 (Monday-Friday, 9:00 a.m.- 5:00 p.m. EST)