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    PEOPLE NEWS

    Jenness to succeed Gutierrez as Kellogg chairman and CEO.

    BATTLE CREEK, Mich. -- With Kellogg Co.'s chairman and CEO, Carlos Gutierrez, accepting President Bush's invitation to serve as Secretary of the United States Department of Commerce, the company's board has elected James M. Jenness, 58, as the company's CEO and chairman. David Mackay, 49, president and COO, was also elected to the board of directors. Both elections are subject to Gutierrez's confirmation and swearing in to office.

    Jenness has served as a member of Kellogg Co.'s board of directors since July 2000. In addition to being chair of the consumer marketing committee, he also serves on the executive committee, the finance committee and the social responsibility committee. He most recently served as CEO of Integrated Merchandising Systems LLC, a market leader in outsource management for retail promotion and branded merchandising.

    "Jim is a strong leader with world-class marketing skills," said Gutierrez. "During his 30- year relationship with the company, he has been directly involved with building Kellogg brands around the world and most recently served as chairman of the consumer marketing committee of the Kellogg board of directors. Jim has been instrumental in setting and implementing the company's current strategy; he knows our business, our culture, and our people well. His experience and knowledge of our company make him an excellent choice for this role."

    Gutierrez continued to say that Mackay has also played a key role in delivering the company's results, demonstrating leadership and knowledge of the company's operations worldwide throughout his 14 years with Kellogg.

    "Jim and David have known each other and worked together for many years. The transition will be very smooth," said Gutierrez.

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