Lancaster Colony Sells an Automotive Accessory Business

COLUMBUS, Ohio, March 26 -- Lancaster Colony Corporation announced today that as part of its strategic alternative review of nonfood operations the company has sold substantially all of the operating assets of its automotive accessory operations located in Wapakoneta, Ohio to KN Rubber, LLC, a portfolio company of Kinderhook Industries, LLC, a New York-based private equity firm. Products manufactured at this location include pickup truck bed mats as well as truck and trailer splashguards.

The company estimates that the cash transaction will result in a pretax gain of approximately $1 to $2 million, subject to customary post-closing adjustments. The gain will be reflected in the results for the company's fiscal third quarter ending March 31, 2007.

John B. Gerlach, Jr., chairman and CEO of Lancaster Colony Corporation, said, "This divestiture is consistent with our objective of minimizing our exposure to the transportation sector. We appreciate the contributions of our former employees and wish them well under the new ownership." This operation generated net sales of approximately $26 million for the fiscal year ended June 30, 2006.