BW20030828000041  20030828T145000Z UTC


( BW)(SARA-LEE)(SRL) Dividend Declaration

    Business Editors
    UK REGULATORY NEWS

    CHICAG0--(BUSINESS WIRE)--Aug. 28, 2003--

                    Sara Lee Corporation Increases
                        Annual Dividend by 21%;
                Company Declares Supplemental Dividend

Sara Lee Corporation's board of directors today significantly
increased the company's common dividend, raising the annualized
dividend 21%, from $.62 per share to $.75 per share, effective with
the current quarter.

"Sara Lee is committed to creating value for our shareholders, and our
strong cash flow affords us the opportunity to increase shareholder
returns via dividends and share repurchase," said C. Steven McMillan,
chairman, president and chief executive officer of Sara Lee
Corporation. "While our board usually considers dividend increases at
its October meeting, we believe that with our robust cash flow and the
recent changes in federal tax laws, now is the opportune time to
substantially increase the dividend to Sara Lee shareholders."

Based on its previous annualized dividend rate of $.62 per share, Sara
Lee declared a quarterly dividend of $.155 per share on June 26, 2003,
payable on Oct. 1, 2003, to stockholders of record at the close of
business on Sept. 2, 2003. Today, Sara Lee declared a supplemental
dividend of $.0325 per share on the company's common stock, also
payable on Oct. 1, 2003, to stockholders of record at the close of
business on Sept. 8, 2003. Together, these payments will provide
shareholders with a quarterly dividend of $.1875 per share, in line
with the new annualized dividend rate of $.75 per share.

In fiscal 2003, Sara Lee Corporation reported cash flow from
operations of approximately $1.8 billion, the second-highest
cash-generating year in the company's history.

Based on yesterday's closing price of $18.42 per share of Sara Lee
common stock, the dividend announced today provides an annualized
yield of 4.1% to the company's shareholders.

Sara Lee Corporation (www.saralee.com) is one of the world's leading
branded consumer packaged goods companies, selling its products in
nearly 200 countries. The company has three global businesses - Food
and Beverage, Intimates and Underwear, and Household Products -
through which it manufactures and markets products of exceptional
quality and value under leading, well-known brand names such as Sara
Lee, Earth Grains, Jimmy Dean, Douwe Egberts, Chock full o'Nuts,
Hanes, Playtex, Bali, Dim, Kiwi, Ambi Pur and Sanex.

   Short Name: Sara Lee Corporation
   Category Code: DIV
   Sequence Number: 00008984
   Time of Receipt (offset from UTC): 20030828T144009+0100

    --30--CV/cg* KO/uk

    CONTACT: Sara Lee Corporation

    KEYWORD: ILLINOIS UNITED KINGDOM INTERNATIONAL EUROPE
    INDUSTRY KEYWORD: FOODS/BEVERAGES RETAIL APPAREL/TEXTILES
    SOURCE: Sara Lee Corporation

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