About Nestlé USA: Investor Relations

Cost Basis Adjustments

A number of corporate transactions can affect a shareholder's tax basis in the Ralston Purina Company stock that he/she owns. Shown below is a list of those transactions that would require an adjustment to the tax basis, along with allocation percentages where appropriate. Each of the transactions has a link to the original shareholder letter with details on how to adjust your Ralston Purina Company stock cost basis.

Date Transaction Effect On Basis

01/09/57 5 for 1 Stock Split

12/21/61 2 for 1 Stock Split

01/10/67 2 for 1 Stock Split

01/21/77 3 for 1 Stock Split

03/08/91 2 for 1 Stock Split

07/31/93 CBG Target Stock Issue 95.57% of basis remains with Ralston Purina Company shares
4.43% of basis goes to CBG shares

03/31/94 Ralcorp Spin-Off 88.3% of basis remains with Ralston Purina Company shares
11.7% of basis goes to Ralcorp shares

05/15/95 CBG Stock Redemption These RAL shares issued in exchange for CBG shares take on same basis that the underlying CBG shares had

04/10/98 Agribrands Spin-0ff 96.54% of basis remains with Ralston Purina Company shares
3.46% of basis goes to Agribrands shares

07/15/98 3 for 1 Stock Split

04/01/00 Energizer Spin-Off 72.06% of basis remains with Ralston Purina Company shares
27.94% of basis goes to Energizer shares

The tax basis allocation percentages on the stock splits and spin-offs are presented for U.S. federal income tax purposes only. Please note that other tax consequences may apply to Ralston Purina Company shareholders who received stock of a spun-off company with respect to employee awards of restricted Ralston Purina Company common stock, and Ralston Purina Company shareholders who are subject to the laws of any foreign jurisdiction.