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Campbell Reports Third Quarter Earnings Per Share of $.35; Net Sales Increase 4 Percent; Baking and Snacking Delivers Strong Performance

CAMDEN, N.J.–(BUSINESS WIRE)–May 23, 2005–Campbell Soup Company
(NYSE:CPB) today reported diluted earnings per share for the third
quarter ended May 1, 2005 of $.35, compared with $.34 in the year-ago
quarter. Last year’s results included a $.02 gain from Campbell’s
share of a class action settlement involving ingredient suppliers.

For the third quarter, net sales rose 4 percent to $1.7 billion,
reflecting the following factors:

    --  Price and sales allowances added 2 percent

    --  Currency added 2 percent

    --  Volume and mix was flat

Net earnings for the third quarter of fiscal 2005 were $146
million compared with $142 million in the prior year. The prior year’s
third quarter results included a $10 million after-tax gain from the
settlement of the class action lawsuit.

For the first nine months of fiscal 2005, the company also
reported strong cash flow from operations of $772 million compared
with $576 million in the year-ago period. The increase was driven by
improved working capital performance, lower cash settlements related
to foreign currency hedging transactions and higher earnings.

For the first nine months of fiscal 2005, the company reported net
earnings of $611 million, or $1.48 per share, versus $588 million, or
$1.43 per share for the prior year. Net earnings for the prior year
period included the $10 million, or $.02 per share, after-tax gain
from the settlement of the class action lawsuit.

Net sales were $6.1 billion for the first nine months of fiscal
2005, an increase of 7 percent compared with the year-ago period,
reflecting the following factors:

    --  Volume and mix added 5 percent

    --  Price and sales allowances added 1 percent

    --  Increased promotional spending subtracted 1 percent

    --  Currency added 2 percent

Douglas R. Conant, Campbell’s President and Chief Executive
Officer, said, “Our company’s third quarter results continued our
strong year-to-date performance across multiple businesses. We are
very pleased with the performance of Pepperidge Farm, Arnott’s
biscuits, Godiva Chocolatier, and our Away From Home soup business. In
our U.S. Soup, Sauces and Beverages segment, lower trade promotion
activity and the pricing action we took at the end of February, as
anticipated, impacted volume unfavorably, especially in ready-to-serve
soup. However, we grew sales of condensed soup 4 percent in the
quarter and 6 percent for the first nine months, the best performance
in many years.

“As planned, we have strengthened our margins, leveraging the
pricing action and continuing our aggressive cost management. We have
significantly increased cash flow from operations and strengthened our
balance sheet. We expect a solid fourth quarter as the impact of the
price increase on volume moderates. We are also looking forward to
next year with new product introductions and a continued emphasis on
enhancing product quality, convenience and availability.”

The company confirmed its fiscal 2005 guidance for earnings per
share to increase between 5 and 7 percent from the adjusted fiscal
year 2004 base of $1.58. The company also said that capital
expenditures for the year are now projected to be approximately $350
million, versus a previous forecast of $380 million, with a portion of
the reduced spending shifting to fiscal 2006.

Summary of Fiscal 2005 Third Quarter and Nine Month Results by
Segment U.S. Soup, Sauces and Beverages

Sales for U.S. Soup, Sauces and Beverages were $627 million, a 2
percent decrease compared with a year ago. The change in sales
reflects the following factors:

    --  Volume and mix subtracted 6 percent

    --  Price and sales allowances added 2 percent

    --  Decreased promotional spending added 2 percent

Operating earnings of $152 million were up 8 percent compared with
the year-ago quarter, due to higher selling prices, lower marketing
spending, and productivity savings, which were partially offset by
volume declines and higher energy related costs.

U.S. retail soup sales for the quarter were flat compared with a
year ago, with condensed soup sales up 4 percent, ready-to-serve soup
sales down 6 percent, and broth sales up 7 percent. For the first nine
months of fiscal 2005, total U.S. retail soup sales increased 5
percent, with condensed sales up 6 percent, ready-to-serve sales up 2
percent, and broth sales up 10 percent.

Further details of sales results for the quarter include the
following:

    --  Sales of condensed eating soups, which achieved double-digit
        sales growth for the first nine months, delivered continued
        strong performance for the quarter, more than offsetting sales
        declines of cooking soups. "Campbell's" condensed eating soups
        achieved solid sales growth in part due to the combination of
        successful merchandising and kids promotional marketing
        programs, as well as increased advertising and pricing.

    --  "Campbell's" condensed cooking soups experienced a decline in
        sales compared to the quarter a year ago, due to a shift in
        marketing spending from the Easter holiday to the higher
        potential winter holiday season. For the nine months, sales of
        cooking soups were flat, which is a significant improvement
        over historical trends. Sales of "Campbell's" condensed
        cooking and eating soups continue to benefit from the
        installation of gravity-feed shelving systems, which are now
        in more than 13,000 stores.

    --  Sales of ready-to-serve soups declined in the quarter,
        reflecting a shift in promotional spending, increased
        competitive activity, and the impact of the price increase
        effective at the end of February. The convenience platform,
        which includes "Campbell's Soup at Hand" sippable soups and
        microwaveable bowls of "Campbell's Chunky" and "Campbell's
        Select," achieved strong sales in the quarter.

    --  "Swanson" broth sales increased driven by the growing practice
        among consumers of substituting broth for water when cooking.
        Additionally, during the year, the company introduced two
        varieties of organic broth into its existing aseptic line.

    Highlights of this segment's other businesses include:

    --  "Campbell's Chunky" chili continues to perform well in the
        marketplace following a successful introduction in the first
        quarter. Microwaveable bowls, which were introduced mid-year,
        and a new Hold The Beans variety in cans, have been
        well-received.

    --  "Campbell's SpaghettiOs" pasta experienced significant sales
        growth, continuing to benefit from effective branding and
        marketing integration with the "Campbell's" brand.

    --  Sales of "Prego" pasta sauces and "Pace" Mexican sauces
        declined in the quarter due to a reduction in marketing
        spending and increased competitive activity.

    --  "V8" vegetable juice sales increased in the quarter, while
        sales of "V8 Splash" beverages declined due to continued
        competitive pressures.

For the first nine months of fiscal 2005, sales increased 4
percent to $2,577 million. Operating earnings decreased 1 percent to
$643 million, as the benefit of higher sales volume and productivity
gains were more than offset by higher energy related costs and
increased trade promotion and advertising.

Baking and Snacking

Sales for Baking and Snacking were $421 million, an 8 percent
increase compared with a year ago.

    A breakdown of the change in sales follows:

    --  Volume and mix added 4 percent

    --  Price and sales allowances added 4 percent

    --  Increased promotional spending subtracted 1 percent

    --  Currency added 1 percent

Operating earnings increased 33 percent to $36 million compared
with the year-ago quarter, driven by higher selling prices, sales
volume gains and productivity savings, as well as lower expenses in
the Australian Snackfoods business, partially offset by higher
commodity costs.

    Further details of sales results include the following:

    --  Pepperidge Farm experienced strong sales growth in each of its
        businesses: bakery, cookies and crackers, and frozen.

    --  Sales of fresh bread and bakery products were up double digits
        for the third consecutive quarter. Top performers included
        "Pepperidge Farm" whole grain breads, as well as its lines of
        improved bagels and English muffins.

    --  "Pepperidge Farm" cookie sales achieved double-digit growth in
        the quarter, driven by Chocolate Chunk cookies, the
        introduction of a new line of sugar-free cookies, and four new
        varieties of soft-baked cookies.

    --  Sales of "Pepperidge Farm Goldfish" snack crackers experienced
        good gains due to continued momentum of the base brand and the
        favorable impact of new advertising featuring the new animated
        character, "Finn."

    --  "Pepperidge Farm" frozen products continued to experience
        growth across pot pies, frozen breads, and frozen pastries.

    --  Arnott's sales rose, as the business benefited from strong
        customer programs and new product launches.

For the first nine months of fiscal 2005, sales increased 8
percent to $1,303 million. Operating earnings increased 16 percent to
$129 million, reflecting higher sales.

International Soup and Sauces

Sales for International Soup and Sauces were $435 million, a 6
percent increase compared with the third quarter of fiscal 2004.

    A breakdown of the change in sales follows:

    --  Volume and mix added 2 percent

    --  Increased promotional spending subtracted 1 percent

    --  Currency added 5 percent

Operating earnings increased 4 percent to $59 million, due to the
favorable impact of currency.

    Further details of sales results include the following:

    --  Sales in Europe were up compared with a year ago, primarily
        due to the favorable impact of currency. Strong wet soup
        growth of "Liebig" soups in France and "Erasco" soups in
        Germany was offset by lower sales in the United Kingdom.

    --  In Asia Pacific, sales rose, driven by higher sales of broth
        and beverages, as well as the favorable impact of currency.

    --  In Canada, sales increased significantly, driven by volume
        gains in ready-to-serve soup and "V8" beverages, as well as
        the favorable impact of currency.

For the first nine months of fiscal 2005, sales increased 8
percent to $1,353 million. Operating earnings increased 5 percent to
$184 million, due to the favorable impact of currency.

Other

The balance of the portfolio includes the Godiva Chocolatier
business worldwide and the Away From Home business in the U.S. and
Canada.

Sales grew 10 percent to $253 million compared with the same
period a year ago.

    A breakdown of the change in sales follows:

    --  Volume and mix added 5 percent

    --  Price and sales allowances added 4 percent

    --  Currency added 1 percent

Operating earnings of $27 million were up 13 percent versus the
prior year, driven by strong sales growth.

    Further details include the following:

    --  Godiva Chocolatier same store sales in North America achieved
        double-digit growth as stronger in-store merchandising,
        increased advertising and promotional activity and new product
        introductions drove higher consumer traffic.

    --  Away From Home sales grew significantly, led by continued
        strong growth of refrigerated soups for grocery store deli
        departments.

For the first nine months of fiscal 2005, sales increased 12
percent to $817 million. Operating earnings increased 11 percent to
$121 million.

Non-GAAP Financial Information

A reconciliation of the adjusted fiscal year 2004 earnings per
share to the reported earnings per share is attached to this release
and can also be found on the company’s website at
www.campbellsoupcompany.com in the “Investor Center” section.

Conference Call

The company will host a conference call to discuss these results
on May 23 at 10:00 a.m. Eastern Standard Time. U.S. participants may
access the call at 1-888-677-5720 and non-U.S. participants at
1-517-308-9003. Participants should call at least five minutes prior
to the starting time. The passcode is “Campbell Soup” and the
conference leader is Len Griehs. The call will also be broadcast live
over the Internet at www.campbellsoupcompany.com and can be accessed
by clicking on the “Webcast” banner. A recording of the call will be
available approximately two hours after it is completed through
midnight May 27, 2005 at 1-866-459-3544 or 1-203-369-1333.

Forward-Looking Statements

This release contains “forward-looking statements” which reflect
the company’s current expectations about its future plans and
performance, including statements concerning the impact of marketing
investments and strategies, pricing, new product introductions,
cost-saving initiatives and quality improvement on sales, earnings and
margins. These forward-looking statements rely on a number of
assumptions and estimates which could be inaccurate and which are
subject to risks and uncertainties. Actual results could vary
materially from those anticipated or expressed in any forward-looking
statement made by the company. Please refer to the company’s most
recent Form 10-K and subsequent filings for a further discussion of
these risks and uncertainties. The company disclaims any obligation or
intent to update the forward-looking statements in order to reflect
events or circumstances after the date of this release.

Reporting Segments

Beginning in fiscal year 2005, Campbell Soup Company earnings
results are reported for the following segments:

U.S. Soup, Sauces and Beverages includes the following retail
businesses: “Campbell’s” brand condensed and ready-to-serve soups,
“Swanson” broth and canned poultry businesses, “Prego” pasta sauce,
“Pace” Mexican sauce, “Campbell’s Chunky” chili, “Campbell’s” canned
pasta, gravies and beans, “Campbell’s Supper Bakes” meal kits, “V8”
vegetable juices, “V8 Splash” juice beverages, and “Campbell’s” tomato
juice.

Baking and Snacking includes the following businesses: “Pepperidge
Farm” cookies, crackers, breads and frozen products in U.S. retail,
“Arnott’s” biscuits in Australia and Asia Pacific, and “Arnott’s”
salty snacks in Australia.

International Soup and Sauces includes the soup, sauce and
beverage businesses outside of the United States, including Canada,
Europe, Mexico, Latin America, and the Asia Pacific region.

Other includes the Godiva Chocolatier business worldwide and the
Away From Home business in the U.S. and Canada.

About Campbell Soup Company

Campbell Soup Company is a global manufacturer and marketer of
high quality soup, sauce, beverage, baking, biscuit, confectionery and
prepared food products. Founded in 1869, the company has a portfolio
of more than 20 market-leading brands, and had over $7 billion in
sales in 2004. For more information on the company, visit Campbell’s
website on the Internet at www.campbellsoupcompany.com.

                CAMPBELL  SOUP  COMPANY  CONSOLIDATED
                 STATEMENTS  OF  EARNINGS (unaudited)
               (millions,  except  per  share  amounts)

                                              THREE  MONTHS  ENDED
                                            --------------------------
                                              May 1,         May 2,
                                               2005           2004
                                            ------------  ------------

Net  sales                                  $     1,736   $     1,667
                                            ------------  ------------

Costs and expenses
    Cost of products sold                         1,035           995
    Marketing and selling  expenses                 275           278
    Administrative expenses                         145           141
    Research and development  expenses               24            23
    Other income                                     (2)          (13)
                                            ------------  ------------
Total costs and expenses                          1,477         1,424
                                            ------------  ------------

Earnings before interest and taxes                  259           243
Interest, net                                        45            40
                                            ------------  ------------
Earnings before taxes                               214           203

Taxes on earnings                                    68            61
                                            ------------  ------------
Net earnings                                $       146   $       142
                                            ============  ============

Per share - basic
   Net earnings                             $       .36   $       .35
                                            ============  ============

   Dividends                                $       .17   $     .1575
                                            ============  ============

Weighted average shares outstanding - basic         409           411
                                            ============  ============


Per share - assuming dilution
   Net earnings                             $       .35   $       .34
                                            ============  ============

Weighted average shares outstanding
  - assuming dilution                               414           413
                                            ============  ============


                  CAMPBELL SOUP COMPANY CONSOLIDATED
                  STATEMENTS OF EARNINGS (unaudited)
                 (millions, except per share amounts)

                                                NINE MONTHS ENDED
                                            -------------------------
                                               May 1,       May 2,
                                                2005         2004
                                            ------------ ------------

Net  sales                                  $     6,050  $     5,676
                                            ------------ ------------

Costs and expenses
    Cost of products sold                         3,601        3,315
    Marketing and selling expenses                  951          911
    Administrative expenses                         403          400
    Research and development expenses                68           65
    Other income                                     (2)          (1)
                                            ------------ ------------
Total costs and expenses                          5,021        4,690
                                            ------------ ------------

Earnings before interest and taxes                1,029          986
Interest, net                                       134          125
                                            ------------ ------------
Earnings before taxes                               895          861

Taxes on earnings                                   284          273
                                            ------------ ------------
Net earnings                                $       611  $       588
                                            ============ ============

Per share - basic
   Net earnings                             $      1.49  $      1.43
                                            ============ ============

   Dividends                                $       .51  $     .4725
                                            ============ ============

Weighted average shares outstanding - basic         409          411
                                            ============ ============


Per share - assuming dilution
   Net earnings                             $      1.48  $      1.43
                                            ============ ============

Weighted average shares outstanding
  - assuming dilution                               414          412
                                            ============ ============


                  CAMPBELL SOUP COMPANY CONSOLIDATED
        SUPPLEMENTAL SCHEDULE OF SALES AND EARNINGS (unaudited)
                 (millions, except per share amounts)


                                            THREE MONTHS ENDED
                                            ------------------
                                             May 1,    May 2,  Percent
Sales                                         2005      2004   Change
-----                                       --------- -------- -------
Contributions:
   U.S. Soup, Sauces and
    Beverages                               $    627  $   637      -2%
   Baking and Snacking                           421      389       8%
   International Soup and Sauces                 435      412       6%
   Other                                         253      229      10%
                                            --------- --------
Total sales                                 $  1,736  $ 1,667       4%
                                            ========= ========


Earnings
--------
Contributions:
   U.S. Soup, Sauces and
    Beverages                               $    152  $   141       8%
   Baking and Snacking                            36       27      33%
   International Soup and Sauces                  59       57       4%
   Other                                          27       24      13%
                                            --------- --------
Total operating earnings                         274      249      10%
Unallocated corporate expenses                   (15)      (6)
                                            --------- --------

Earnings before interest and
 taxes                                           259      243       7%
Interest, net                                    (45)     (40)
Taxes on earnings                                (68)     (61)
                                            --------- --------
Net earnings                                $    146  $   142       3%
                                            ========= ========

Net earnings per share -
 assuming dilution                          $    .35  $   .34       3%
                                            ========= ========


                  CAMPBELL SOUP COMPANY CONSOLIDATED
        SUPPLEMENTAL SCHEDULE OF SALES AND EARNINGS (unaudited)
                 (millions, except per share amounts)


                                           NINE  MONTHS ENDED
                                           ------------------
                                            May 1,    May 2,   Percent
Sales                                        2005      2004    Change
-----                                      --------  --------  -------
Contributions:
   U.S. Soup, Sauces and
    Beverages                              $ 2,577   $ 2,487        4%
   Baking and Snacking                       1,303     1,202        8%
   International Soup and Sauces             1,353     1,255        8%
   Other                                       817       732       12%
                                           --------  --------
Total sales                                $ 6,050   $ 5,676        7%
                                           ========  ========

Earnings
--------
Contributions:
   U.S. Soup, Sauces and
    Beverages                              $   643   $   652       -1%
   Baking and Snacking                         129       111       16%
   International Soup and Sauces               184       175        5%
   Other                                       121       109       11%
                                           --------  --------
Total operating earnings                     1,077     1,047        3%
Unallocated corporate expenses                 (48)      (61)
                                           --------  --------

Earnings before interest and
 taxes                                       1,029       986        4%
Interest, net                                 (134)     (125)
Taxes on earnings                             (284)     (273)
                                           --------  --------
Net earnings                               $   611   $   588        4%
                                           ========  ========

Net earnings per share
 - assuming dilution                       $  1.48   $  1.43        3%
                                           ========  ========


                CAMPBELL  SOUP  COMPANY  CONSOLIDATED
                     BALANCE  SHEETS (unaudited)
                             (millions)


                                                   May 1,     May 2,
                                                    2005       2004
                                                 ---------- ----------

Current assets                                   $   1,419  $   1,340

Plant assets, net                                    1,911      1,834

Intangible assets, net                               3,153      2,996

Other assets                                           330        273
                                                 ---------- ----------

     Total assets                                $   6,813  $   6,443
                                                 ========== ==========


Current liabilities                              $   1,900  $   2,187

Long-term debt                                       2,541      2,543

Nonpension postretirement benefits                     290        301

Other liabilities                                      714        536

Shareowners' equity                                  1,368        876
                                                 ---------- ----------

     Total liabilities and shareowners' equity   $   6,813  $   6,443
                                                 ========== ==========


Total debt                                       $   2,988  $   3,312
                                                 ========== ==========

Cash and cash equivalents                        $      32  $      28
                                                 ========== ==========

Reconciliation of GAAP and Non-GAAP Financial Measures

Campbell Soup Company uses certain “non-GAAP” financial measures
as defined by the Securities and Exchange Commission in certain
communications. The “non-GAAP” financial measures are measures of
performance not defined by accounting principles generally accepted in
the United States and should be considered in addition to, not in lieu
of, GAAP reported measures. The items include the following:

— Earnings per share (EPS), excluding restructuring related

costs and one-time items

The table below reconciles earnings per share, presented in
accordance with GAAP, to earnings per share excluding restructuring
related costs and other one-time items.

                                             Fiscal Year Ended
                                             -----------------
                                                  August
                                                  1, 2004
                                             -----------------

As reported earnings per share               $           1.57
Add: Restructuring related costs (1)                     0.05
Deduct:  Gain on litigation settlement (2)              (0.02)
         Gain on sale of property (3)                   (0.02)
                                             -----------------

Earnings per share, excluding restructuring
 related costs and one-time items            $           1.58
                                             =================

(1) The costs relate to the worldwide cost savings initiatives and
    Australian distribution and logistics realignment announced on
    June 24, 2004.

(2) The gain relates to the settlement of a class-action lawsuit
    involving ingredient suppliers.

(3) The gain relates to the sale of an idle facility in California.

The company believes that earnings per share excluding certain
restructuring related costs and certain other transactions not
considered to be part of the ongoing business are a better indicator
of the true performance of the business. Consequently, the company
believes that investors may be able to better understand earnings if
these transactions are excluded from the results.

    CONTACT: Campbell Soup Company
             Jerry S. Buckley (Media), 856-342-6007
             Leonard F. Griehs (Analysts), 856-342-6428

    SOURCE: Campbell Soup Company