Lancaster Colony Continues Higher Cash Dividend; Board Authorizes Additional Stock Repurchases

COLUMBUS, Ohio, Aug. 25, 2004 -- Lancaster Colony Corporation announced today that its Board of Directors has declared a quarterly cash dividend of 23 cents per share on the company's common stock, payable September 30, 2004, to shareholders of record on September 10, 2004. The board voted to continue the cash dividend at the higher level set nine months ago. At that time, the company marked 41 consecutive years of increasing cash dividends each year.

The board also authorized the repurchase of an additional two million shares of the company's common stock as part of an ongoing stock repurchase program. Common shares currently outstanding are approximately 35,330,000.

John B. Gerlach, Jr., chairman and chief executive officer of Lancaster Colony, said, "The dividend reflects the company's continued strong financial position and will be the 165th consecutive quarterly cash dividend paid by the company since September 1963." He noted that the indicated annual payout for the current fiscal year ending June 30, 2005, is 92 cents per share, up from the 89 cents per share paid in the fiscal year ended June 30, 2004.

This news release contains forward-looking statements related to future growth and earnings opportunities. Such statements are based upon certain assumptions and assessments made by management of the company in light of its experience and perception of historical trends, current conditions, expected future developments and other factors it believes to be appropriate. Actual results may differ as a result of factors over which the company has no, or limited, control including the strength of the economy, slower than anticipated sales growth, the extent of operational efficiencies achieved, the success of new product introductions, price and product competition, and increases in raw materials costs. Management believes these forward-looking statements to be reasonable; however, undue reliance should not be placed on such statements, which are based on current expectations. The company undertakes no obligation to publicly update such forward-looking statements. More detailed statements regarding significant events which could affect the company's financial results are included in the company's Forms 10-K and 10-Q filed with the Securities and Exchange Commission.