1. Value Added Oat Products William A. Bonner ConAgra Mills July 23, 2006

2. Outline Whole Grain Trends Consumer Trends Conventional Value Add Component Values

3. Whole Grain Trends Never strayed from whole grain Practical reasons – oil separation

4. Whole Grain Trends Wheat – biggest usage in baking Varieties specific to end product Integrity in finished product Actual amount labeling Milk fat example

5. Whole Grain Trends Rice – crisped rice to Brown Rice Corn – corn germ shelf life implications Barley

6. Consumer Data – Hot Cereal Year end 2003 – 352,974,560 # Year end 2004 – 353,750,016 Year end 2005 – 369,195,456 12 Mo 6/18/06 – 370,942,848

7. Consumer Data – Hot Cereal % Change year ago Year end 2003 – (3.1) Year end 2004 – 0.2 Year end 2005 – 4.4 12 Mo 6/18/06 – 1.0

8. Consumer Data – RTE Cereal Year end 2003 – 2,223168,000 # Year end 2004 – 2,169,517,056 Year end 2005 – 2,143,369,472 12 Mo 6/18/06 – 2,131,229,568

9. Consumer Data – RTE Cereal % Change year ago Year end 2003 – (3.3) Year end 2004 – (2.4) Year end 2005 – (1.2) 12 Mo 6/18/06 – (1.0)

10. Consumer Data – Granola Bars Year end 2003 – 122,563,944 # Year end 2004 – 128,589,464 Year end 2005 – 140,274,288 12 Mo 6/18/06 – 142,443,888

11. Consumer Data – Granola Bars % Change year ago Year end 2003 – 7.5 Year end 2004 – 4.9 Year end 2005 – 9.1 12 Mo 6/18/06 – 7.1

12. Consumer Trends INDUSTRY ENVIRONMENT CONVENTIONAL OAT MILLING ›Increasingly diverse consumer population creates new eating habits ›Chewy granola bars and cereal bars in general strong expansion ›Hot cereal consumption renewed. Indicated growth in Hispanic market ›Continuing health trends and positive findings for whole grains ›Glycemic index and diabetes ›Obesity

13. Test foods are compared against glucose solution or white bread on an equal available carbohydrate basis GI <55 is Low GI (compared to glucose solution=100) Applicable for carbohydrate- based foods Crisped rice cereal, GI = 82 White bread, GI = 70 Oatmeal, GI = 58 Pasta = 55 Hours Blood Sugar Level Glycemic Index Glycemic Indexing is a ranking of foods based on the effect on blood sugar levels

14. Conventional Value Add WOG/SCOG Gruel Flakes Flavored instant oatmeal Precooked – heat & serve Drinks Smoothie/Vegetable based Nutraceutical

15. Conventional RTE Value Add Whole Grain Product Functionality

16. Conventional Flake Value Add Coated Oats/Grains Whole grain appearance Bland toasted background note Designed textures

17. Component Value Add Oat Fiber Pure clean insoluble fiber No heart health claim 80 – 90 % TDF Relatively bland Moisture control Best in conventional baked goods Oat Cellulose

18. Component Value Add Oat Protein – Hydrolyzed – greater solubility than native Hair and skin applications Replace animal derived proteins Fat binding

19. Component Value Add Oat Oil – Dermatological applications – Linoleic Emulsification Antioxidant Polar, bipolar and non polar lipids

20. Component Value Add Oat Starch Oat Bran Phytochemical Separations Colloidal Oatmeal

21. Value Added Oat Products William A. Bonner ConAgra Mills July 23, 2006