Please may I refer to your e-mail of 27 February to Numico regarding our WHO Code compliance in China.

First of all we regret very much that the announcement of our baby food promotion activity in China has led to a misunderstanding on your side. I can assure you that the activities referred to in you letter are in full compliance with the code as this only regards products outside the range of breastmilk substitues and all the texts used for this activity have been approved beforehand by Chinese authorities. In no country Numico would ever make advertising or promotion for starter infant formula, intended for babies younger than 6 months when the mother is not allowed or in a position to breastfeed Right from the beginning in 1981 Royal Numico has endorsed the WHO Code and we have taken responsibility for the primary aim of the Code. As a general principle, we want to ensure that all our marketing and promotional activities contribute to the general goal of providing safe and appropriate nutrition for infants by the protection of breastfeeding and by ensuring the proper use of breast milk substitutes, when these become necessary. In this connection I want to emphasise that all our baby food branches, in more than 65 countries, abide by the Code or local interpretation of the Code, whichever are applicable. In these counties our starter infant formula will contain a statement to the effect that breastfeeding is the ideal source of nutrition for infants and the professional advice should be sought before using starter infant formula and no direct advertising or promotion of this product is allowed. This also counts for China. Actually Numico supports the efforts by the Chinese Government to implement the WHO code as appropriate. This can be illustrated by our active participation in the recent IFM conference on infant feeding in Beijing on 20 February 2004, discussing regulatory issues to protect breastfeeding and current science on good nutrition for young children, infants and for pre-terms (see attachment 1).

Furthermore we participate in the promotion of the establishment of an industry association in China to stimulate the right discipline on marketing practises among all players in the market.

Finally I want to inform you that regarding WHO Code compliance Numico maintains briefing programmes for expatriate and local employees (also our independent distributors are covered). They are all made aware of the importance of adhering to WHO code. Code monitoring activities are establishment in various markets to make sure that this discipline is well maintained. In addition Numico has established an independent Advisory Committee on Ethical Affairs to audit evaluation reports of our marketing practises. Of course compliance is best achievable if instructions on marketing practises are clearly defined by national legislation. This not only provides clarity on interpretations but also brings along official supervision that laws are maintained. In countries without clear Code legislation our employees have to comply strictly with the Numico directive, based on the WHO Code. (See attachment 2). In these countries we also welcome the monitoring activities of NGO's reported directly to our company (as recommended by WHO). Any notification of a violence of the Code will have an immediate followed -up and when a violation can be established corrective measures will be taken.

If you have any further questions, please do not hesitate to contact me.

Klaas de Jong Corporate
Director Regulatory Affairs

cc WHO Geneve
MOH Beijing