Barington Capital encouraged by Lancaster Colony's recent actions

By Lisa Kerner

Charlotte, N.C., March 2 - Lancaster Colony Corp. investor Barington Capital Group, LP said it is pleased with actions taken by the company to improve its corporate governance, including the appointment of a lead independent director.

Barington made its comments in a March 2 letter to Lancaster Colony chairman, chief executive officer and president John B. Gerlach Jr.

According to Barington, Lancaster Colony has implemented a number of measures suggested by the shareholder in September 2007.

The measures include the formation of a task force to improve the company's operations, productivity and profitability and the divestiture of Lancaster Colony's non-core automotive and consumer and floral glass operations.

Lancaster Colony also repurchased over 2.3 million shares of its common stock during the fiscal year ended June 30, 2008 and appointed a new independent director with experience in the food industry to the board of directors.

"It is our belief that these measures have not only helped improve margins in the company's core specialty foods segment but have also enhanced the company's overall share price performance," Barington's James A. Mitarotonda said in the letter.

Barington wanted its three nominees, including Mitarotonda, elected to Lancaster Colony's board in November 2007.

Lancaster Colony is a diversified manufacturer and marketer of consumer products based in Columbus, Ohio, with a focus on specialty food products for the retail and foodservice markets.

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