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NORTHFIELD, Ill., Aug 23, 2005 (BUSINESS WIRE) -- The Board of Directors of Kraft Foods Inc. (NYSE:KFT) today increased the company's regular quarterly dividend by 12.2%, to an annualized rate of $0.92 per common share of Class A and Class B stock. The new quarterly dividend of $0.23 per common share, up from $0.205 per common share, is payable on October 5, 2005, to stockholders of record as of September 7, 2005. "This dividend increase reflects confidence in our ability to grow cash flow and our commitment to returning value to shareholders," said Roger K. Deromedi, CEO of Kraft Foods.

Kraft Foods markets many of the world's leading food brands, including Kraft cheese, Maxwell House and Jacobs coffees, Nabisco cookies and crackers, Philadelphia cream cheese, Oscar Mayer meats, Post cereals and Milka chocolates, in more than 155 countries.

For more information, please visit our website at www.kraft.com.

SOURCE: Kraft Foods Inc.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Kraft Foods' business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.