##### Table of Contents









SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549


FORM 10-K




|  |                                                                                               
|- | ----------------------------------------------------------------------------------------------
|þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES 
     EXCHANGE ACT OF 1934







|  |                                                                                                   
|- | --------------------------------------------------------------------------------------------------
|o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES 
     EXCHANGE ACT OF 1934




1-3385


H. J. HEINZ COMPANY




|                                               |  |                                     
|---------------------------------------------- |  | ------------------------------------
|PENNSYLVANIA                                   |  | 25-0542520                          
|(State of Incorporation)                       |  | (I.R.S. Employer Identification No.)
|600 Grant Street,
    Pittsburgh, Pennsylvania |  | 15219                               
|(Address of principal executive offices)       |  | (Zip Code)                          

412-456-5700




SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE
ACT:


|                                                                                  |  |                                          
|--------------------------------------------------------------------------------- |  | -----------------------------------------
|Title of each class                                                               |  | Name of each exchange on which registered
|                                                                                  |  |                                          
|Common Stock, par value $.25 per share                                            |  | The New York Stock Exchange;             
|                                                                                  |  | Pacific Exchange                         
|Third Cumulative Preferred Stock,
    $1.70 First Series, par value $10 per share |  | The New York Stock Exchange              

SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE
ACT:




þ o


o þ


þ o


S-K 10-K 10-K. þ


12b-2


þ o o


12b-2 o þ






DOCUMENTS INCORPORATED BY REFERENCE












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##### Table of Contents



PART I




|        |          
|------- | ---------
|Item 1. | Business.









|              |  |           |    |  |        |  |   |                  |  |                                                                                                                                                                                                                                                                                                                                                                                
|------------- |  | --------- | -- |  | ------ |  | - | ---------------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|              |  | Factories |    |  |       
|              |  |           |    |  |       
|              |  | Owned     |    |  | Leased |  |   | Major Trademarks
|              |  |           |    |  |        |  |   |                 
|North America |  |           | 27 |  |        |  | 4 |                  |  | Heinz, Classico, Quality Chef Foods, Yoshidas, Jack
    Daniels*, Catelli, Wylers, Heinz Bell Orto, Bella
    Rossa, Chef Francisco, Diannes, Ore-Ida, Tater Tots, Bagel
    Bites, Weight Watchers*, Boston Market*, Smart Ones, Poppers,
    TGI Fridays*, Delimex, Truesoups, Alden Merrell, Escalon,
    PPI, Todds, Appetizers And, Inc., Nancys,
    Lea & Perrins
|Europe        |  |           | 27 |  |        |  |  |                  |  | Heinz, Orlando, Karvan Cevitam, Brinta, Roosvicee, Venz,
    Weight Watchers*, Farleys, Farex, Sonnen Bassermann,
    Plasmon, Nipiol, Dieterba, Pudliszki, Ross, Honig, De Ruijter,
    Aunt Bessie*, Mums Own, Moya Semya, Picador,
    Derevenskoe, Mechta Hoziayki, Lea & Perrins, HP,
    Amoy*                                                                        
|Asia/Pacific  |  |           | 18 |  |        |  | 2 |                  |  | Heinz, Tom Piper, Watties, ABC, Chef, Craigs,
    Bruno, Winna, Hellaby, Hamper, Farleys, Greenseas,
    Gourmet, Nurture, LongFong                                                                                                                                                                                                                                         
|Rest of World |  |           | 11 |  |        |  | 3 |                  |  | Heinz, Wellingtons, Ganave, Complan, Glucon D, Nycil                                                                                                                                                                                                                                                                                                                          
|              |  |           |    |  |        |  |   |                 
|              |  |           | 83 |  |        |  | 9 |                  |  | * Used under license                                                                                                                                                                                                                                                                                                                                                           
|              |  |           |    |  |        |  |   |                 



2



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10-K, 10-Q, 8-K, www.heinz.com


Item 1A.     Risk Factors




3



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| |                                                                                                                                                      
| | -----------------------------------------------------------------------------------------------------------------------------------------------------
| | Competitive product and pricing pressures in the food
    industry could adversely affect the Companys ability to
    gain or maintain market share.





| |                                                                                                                                                    
| | ---------------------------------------------------------------------------------------------------------------------------------------------------
| | The Companys performance is affected by economic and
    political conditions in the U.S. and in various other nations
    where it does business.





| |                                                                                                                                  
| | ---------------------------------------------------------------------------------------------------------------------------------
| | Increases in the cost and restrictions on the availability
    of raw materials could adversely affect our financial
    results.





| |                                                                                                                                                                                   
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Higher energy costs and other factors affecting the cost
    of producing, transporting, and distributing the Companys
    products could adversely affect our financial results.



4



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| |                                                                                                                                     
| | ------------------------------------------------------------------------------------------------------------------------------------
| | The results of the Company could be adversely impacted as
    a result of increased pension, labor, and people-related
    expenses.





| |                                                                                                                                                                                              
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The impact of various food safety issues, environmental,
    legal, tax, and other regulations and related developments could
    adversely affect the Companys sales and
    profitability.





| |                                                                                                       
| | ------------------------------------------------------------------------------------------------------
| | The need for and effect of product recalls could have an
    adverse impact on the Companys business.





| |                                                                                                                                                                          
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The failure of new product or packaging introductions to
    gain trade and consumer acceptance and changes in consumer
    preferences could adversely affect our sales.



5



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| |                                                                                                                                                                                                                                         
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The failure to successfully integrate acquisitions and
    joint ventures into our existing operations or the failure to
    gain applicable regulatory approval for such transactions could
    adversely affect our financial results.





| |                                                                                                                                                
| | -----------------------------------------------------------------------------------------------------------------------------------------------
| | The Companys operations face significant foreign
    currency exchange rate exposure, which could negatively impact
    its operating results.





| |                                                                                                                                                                                  
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The failure to complete the strategic transformation
    through further simplification and cost savings could adversely
    affect the Companys ability to increase net income.





|         |                          
|-------- | -------------------------
|Item 1B. | Unresolved Staff Comments



CAUTIONARY STATEMENT RELEVANT TO FORWARD-LOOKING
INFORMATION




6



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| |   |                                                                                                                                                                                                                                                                                                                                                   
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Any significant change in the Companys business with any
    of its major customers;                                                                                                                                                                                                                                                             
|
| |  | The Companys ability to generate sufficient cash flows to
    support capital expenditures, share repurchase programs,
    interest and debt principal payments, and general operating
    activities;                                                                                                                                           
|
| |  | The Companys ability to achieve sales and earnings
    forecasts, which are based on assumptions about sales volume,
    product mix and other items;                                                                                                                                                                                            
|
| |  | The Companys ability to achieve its cost savings
    objectives, including any restructuring programs, strategic
    initiatives, working capital initiatives, or other programs;                                                                                                                                                                
|
| |  | The impact of unforeseen economic and political changes in
    markets where the Company competes, such as export and import
    restrictions, currency exchange rates and restrictions,
    inflation rates, recession, foreign ownership restrictions,
    nationalization and other external factors over which the
    Company has no control;
|
| |  | The possibility of increased pension expense and contributions
    resulting from declines in stock market returns, cost increases
    for medical benefits, and other people-related costs and
    accounting changes;                                                                                                                           
|
| |  | The performance of businesses in hyperinflationary environments;                                                                                                                                                                                                                                                                                  
|
| |  | The need for and effect of any recalls of products;                                                                                                                                                                                                                                                                                               
|
| |  | Changes in estimates in critical accounting judgments;                                                                                                                                                                                                                                                                                            
|
| |  | Currency valuations, interest rate fluctuations, and other
    capital market conditions;                                                                                                                                                                                                                                                         
|
| |  | Changes in credit ratings;                                                                                                                                                                                                                                                                                                                        
|
| |  | The effectiveness of the Companys advertising, marketing
    and promotional programs;                                                                                                                                                                                                                                                           
|
| |  | Weather conditions, which could impact demand for Company
    products and the supply and cost of raw materials;                                                                                                                                                                                                                                  
|
| |  | The impact of supply chain efficiency and cash flow initiatives;                                                                                                                                                                                                                                                                                  
|
| |  | Potential impairment of investments;                                                                                                                                                                                                                                                                                                              
|
| |  | Risks inherent in litigation, including tax litigation;                                                                                                                                                                                                                                                                                           
|
| |  | The success of tax planning strategies;                                                                                                                                                                                                                                                                                                           
|
| |  | The Companys ability to maintain its profit margin in the
    face of a consolidating retail environment and large global
    customers;                                                                                                                                                                                                         
|
| |  | The impact of global industry conditions, including the effect
    of the economic downturn in the food industry;                                                                                                                                                                                                                                 
|
| |  | The voting result for shareholder proposals; and                                                                                                                                                                                                                                                                                                  

7



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| |   |                                                                                                                                                                 
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The Companys ability to offset the reduction in volume and
    revenue resulting from participation in categories experiencing
    declining consumption rates.





|        |            
|------- | -----------
|Item 2. | Properties.





|        |                   
|------- | ------------------
|Item 3. | Legal Proceedings.





|        |                                                     
|------- | ----------------------------------------------------
|Item 4. | Submission of Matters to a Vote of Security Holders.



8



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Executive Officers of the Registrant




|                      |  |                  |    |                                                 |                                   |                                                                                                                                                                                                                                                                                                                                                                                                              
|--------------------- |  | ---------------- | -- | ----------------------------------------------- | --------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                      |  |                  |    | Positions and Offices Held with the Company and
|                      |  | Age (as of       |    |                                                 | Principal Occupations or         
|Name                  |  | August 16, 2006) |    |                                                 | Employment During Past Five Years
|                      |  |                  |    |                                                 |                                  
|William R. Johnson    |  |                  | 57 |                                                 |                                   | Chairman, President, and Chief Executive Officer since September
    2000; President and Chief Executive Officer from April 1998 to
    September 2000.                                                                                                                                                                                                                                                      
|                     
|Jeffrey P. Berger     |  |                  | 56 |                                                 |                                   | Executive Vice PresidentGlobal Foodservice and President
    and Chief Executive Officer-Heinz North America Foodservice
    since May 2006; President Foodservice from January 2003 to May
    2005; President Heinz US Foodservice from 1994 to January 2003.                                                                                                                                             
|                     
|David C. Moran        |  |                  | 48 |                                                 |                                   | Executive Vice President & Chief Executive Officer and
    President of Heinz North America Consumer Products since
    November 2005; Senior Vice PresidentPresident Heinz North
    America Consumer Products from May 2005 to November 2005;
    President North America Consumer Products from January 2003 to
    May 2005; President Heinz Retail Sales Company from October 1999
    to January 2003.
|                     
|Arthur B. Winkleblack |  |                  | 49 |                                                 |                                   | Executive Vice President and Chief Financial Officer since
    January 2002; Acting Chief Operating Officer Perform.com
    and Chief Executive OfficerFreeride.com at Indigo Capital
    (1999-2001).                                                                                                                                                                                                     
|                     
|Theodore N. Bobby     |  |                  | 55 |                                                 |                                   | Senior Vice President and General Counsel since April 2005;
    Acting General Counsel from January 2005 to April 2005; Vice
    President Legal Affairs from September 1999 to January
    2005.                                                                                                                                                                                                           
|                     
|Edward J. McMenamin   |  |                  | 49 |                                                 |                                   | Senior Vice PresidentFinance and Corporate Controller
    since August 2004; Vice President Finance from June 2001 to
    August 2004; Vice President Finance and Chief Financial Officer
    of Heinz North America from May 2000 to June 2001.                                                                                                                                                            

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|                   |  |                  |    |                                                 |                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                   
|------------------ |  | ---------------- | -- | ----------------------------------------------- | --------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                   |  |                  |    | Positions and Offices Held with the Company and
|                   |  | Age (as of       |    |                                                 | Principal Occupations or         
|Name               |  | August 16, 2006) |    |                                                 | Employment During Past Five Years
|                   |  |                  |    |                                                 |                                  
|Michael D. Milone  |  |                  | 50 |                                                 |                                   | Senior Vice President-Heinz Australia, New Zealand and Rest of
    World since May 2006; Senior Vice PresidentPresident Rest
    of World and Asia from May 2005 to May 2006; Senior Vice
    PresidentPresident Rest of World from December 2003 to May
    2005; Chief Executive Officer Star-Kist Foods, Inc. from June
    2002 to December 2003; Vice PresidentGlobal Category
    Development from May 1998 to June 2002.
|                  
|D. Edward I. Smyth |  |                  | 56 |                                                 |                                   | Senior Vice PresidentChief Administrative Officer and
    Corporate and Government Affairs since December 2002; Senior
    Vice PresidentCorporate and Government Affairs from May
    1998 to December 2002.                                                                                                                                                                                                                   
|                  
|Chris Warmoth      |  |                  | 47 |                                                 |                                   | Senior Vice PresidentHeinz Asia since May 2006; Deputy
    President Heinz Europe from December 2003 to April 2006;
    Director Business Development and Marketing, Central and Eastern
    Europe, Eurasia and Middle East Group, the Coca-Cola Company
    from December 2001 to April 2003; Vice President Fabric Care,
    Western EuropeProcter and Gamble from July 1999 to
    November 2001.                           
|                  
|Scott OHara       |  |                  | 45 |                                                 |                                   | Executive Vice PresidentPresident and Chief Executive
    Officer Heinz Europe since May 2006; Executive Vice
    PresidentAsia Pacific/Rest of World from January 2006 to
    May 2006; Senior Vice President EuropeThe Gillette Company
    from October 2004 to January 2006; General Manager U.K. and
    NLThe Gillette Company from June 2001 to October 2004.                                                          
|                  
|David Ciesinski    |  |                  | 40 |                                                 |                                   | Vice PresidentOffice of the Chairman & Strategy
    since February 2006; Vice President Strategic Planning from
    August 2004 to February 2006; General Manager and Director
    Strategy Support from June 2003 to August 2004; Manager Business
    Planning and Investment Analysis from May 2001 to June 2003.                                                                                                             

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PART II




|        |                                                                                                                      
|------- | ---------------------------------------------------------------------------------------------------------------------
|Item 5. | Market for Registrants Common Equity, Related
    Stockholder Matters and Issuer Purchases of Equity
    Securities.





|                                         |  |           |           |  |            |  |                 |                     |  |                  |                 |  |  |  |   | 
|---------------------------------------- |  | --------- | --------- |  | ---------- |  | --------------- | ------------------- |  | ---------------- | --------------- |  |  |  | - | 
|                                         |  |           |           |  |            |  |                 | Maximum             | 
|                                         |  | Total     |           |  |            |  | Total Number of |                     |  | Number of Shares |                
|                                         |  | Number of |           |  | Average    |  |                 | Shares Purchased as |  |                  | that May Yet Be | 
|                                         |  | Shares    |           |  | Price Paid |  |                 | Part of Publicly    |  |                  | Purchased Under | 
|Period                                   |  | Purchased |           |  | per Share  |  |                 | Announced Programs  |  |                  | the Programs    | 
|                                         |  |           |           |  |            |  |                 |                     |  |                  |                 | 
|January 26, 2006 -
    February 22, 2006 |  |           |          |  |            |  |                |                     |  |                  |                |  |  |  |  | 
|February 23, 2006 -
    March 22, 2006   |  |           |          |  |            |  |                |                     |  |                  |                |  |  |  |  | 
|March 23, 2006
    May 3, 2006           |  |           | 7,355,100 |  |            |  | 39.92           |                     |  |                  |                |  |  |  |  | 
|                                         |  |           |           |  |            |  |                 |                     |  |                  |                 | 
|Total                                    |  |           | 7,355,100 |  |            |  | 39.92           |                     |  |                  |                |  |  |  |  | 
|                                         |  |           |           |  |            |  |                 |                     |  |                  |                 | 



11



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|        |                         
|------- | ------------------------
|Item 6. | Selected Financial Data.



|                                                                                                                        |  |                   |           |  |            |   |            |            |  |   |            |  |  |            |           |  |  |   |            | 
|----------------------------------------------------------------------------------------------------------------------- |  | ----------------- | --------- |  | ---------- | - | ---------- | ---------- |  | - | ---------- |  |  | ---------- | --------- |  |  | - | ---------- | 
|                                                                                                                        |  | Fiscal Year Ended |          
|                                                                                                                        |  |                   |          
|                                                                                                                        |  | May 3,            |           |  | April 27,  |   |            | April 28,  |  |   | April 30,  |  |  | May 1,     |          
|                                                                                                                        |  | 2006              |           |  | 2005       |   |            | 2004       |  |   | 2003       |  |  | 2002       |          
|                                                                                                                        |  | (53 Weeks)        |           |  | (52 Weeks) |   |            | (52 Weeks) |  |   | (52 Weeks) |  |  | (52 Weeks) |          
|                                                                                                                        |  |                   |           |  |            |   |            |            |  |   |            |  |  |            |          
|Sales(1)                                                                                                                |  | $                 | 8,643,438 |  |            | $ | 8,103,456  |            |  | $ | 7,625,831  |  |  | $          | 7,566,800 |  |  | $ | 7,040,934  | 
|Interest expense(1)                                                                                                     |  |                   | 316,296   |  |            |   | 232,088    |            |  |   | 211,382    |  |  |            | 222,729   |  |  |   | 230,027    | 
|Income from continuing operations before cumulative effect of
    change in accounting principle(1)                     |  |                   | 442,761   |  |            |   | 688,004    |            |  |   | 715,451    |  |  |            | 478,303   |  |  |   | 593,042    | 
|Income from continuing operations before cumulative effect of
    change in accounting principle per share  diluted(1) |  |                   | 1.29      |  |            |   | 1.95       |            |  |   | 2.02       |  |  |            | 1.35      |  |  |   | 1.68       | 
|Income from continuing operations before cumulative effect of
    change in accounting principle per share  basic(1)   |  |                   | 1.31      |  |            |   | 1.97       |            |  |   | 2.03       |  |  |            | 1.36      |  |  |   | 1.69       | 
|Short-term debt and current                                                                                             |  |                   |           |  |            |   |            |            |  |   |            |  |  |            |           |  |  |   |            | 
|portion of long-term debt                                                                                               |  |                   | 54,969    |  |            |   | 573,269    |            |  |   | 436,450    |  |  |            | 154,786   |  |  |   | 702,645    | 
|Long-term debt, exclusive of current portion(2)                                                                         |  |                   | 4,357,013 |  |            |   | 4,121,984  |            |  |   | 4,537,980  |  |  |            | 4,776,143 |  |  |   | 4,642,968  | 
|Total assets                                                                                                            |  |                   | 9,737,767 |  |            |   | 10,577,718 |            |  |   | 9,877,189  |  |  |            | 9,224,751 |  |  |   | 10,278,354 | 
|Cash dividends per common share                                                                                         |  |                   | 1.20      |  |            |   | 1.14       |            |  |   | 1.08       |  |  |            | 1.485     |  |  |   | 1.6075     | 



|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Amounts exclude the operating results related to the
    Companys European seafood business and
    Tegel®
    poultry businesses in New Zealand which were divested in Fiscal
    2006 and have been presented as discontinued operations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   
|(2) | Long-term debt, exclusive of current portion, includes
    ($1.4) million, $186.1 million, $125.3 million,
    $294.8 million and $23.6 million of hedge accounting
    adjustments associated with interest rate swaps at May 3,
    2006, April 27, 2005, April 28, 2004, April 30,
    2003 and May 1, 2002, respectively. Long-term debt reflects
    the prospective classification of Heinz Finance Companys
    $325 million of mandatorily redeemable preferred shares
    from minority interest to long-term debt beginning in the second
    quarter of Fiscal 2004 as a result of the adoption of Statement
    of Financial Accounting Standards (SFAS)
    No. 150. Each share of preferred stock is entitled to
    annual cash dividends at a rate of 6.226% or $6,226 per
    share. On July 15, 2008, each share will be redeemed for
    $100,000 in cash for a total redemption price of
    $325 million.



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e-commerce








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|        |                                                                                           
|------- | ------------------------------------------------------------------------------------------
|Item 7. | Managements Discussion and Analysis of Financial
    Condition and Results of Operations.

Overview


®






| |                
| | ---------------
| | Progress Update





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Successfully divested non-core U.S. businesses in a
    $2.3 billion, tax-free spin-off in Fiscal 2003. This
    simplified our U.S. business and enabled us to upgrade
    talent, processes and systems. We have driven growth through
    innovation in the iconic
    Heinz®
    Ketchup brand, Smart
    Ones®
    nutritional meals,
    Ore-Ida®
    frozen potatoes and
    Classico®
    pasta sauces.                 
|
| |  | Implemented a similar transformational plan in our Pacific
    operations of Australia and New Zealand. In these two business
    units, the Company simplified the structure, upgraded talent,
    streamlined processes and accelerated innovation. As a
    consequence, sales have grown at double-digit rates and
    operating profits in the Pacific operations have more than
    doubled from Fiscal 2003 through 2006.
|
| |  | From Fiscal 2002 through 2006, we have significantly outpaced
    the industry in working capital efficiency improvements, by
    lowering our cash conversion cycle by 36 days to
    56 days for Fiscal 2006. We also maintained capital
    spending at an average rate of 2.4% of sales, one of the lowest
    in the industry.                                                                                             
|
| |  | Acquired highly-targeted businesses to further strengthen our
    leadership position in the three core categories, including the
    Petrosoyuz (condiments and sauces) business in Russia and the
    iconic
    HP®
    and Lea &
    Perrins®
    sauces brands.                                                                                                                                                            
|
| |  | Returned over $4 billion to shareholders over the last four
    years through the dividend derived from the spin-off to Del
    Monte, the annual dividend program and share repurchases.                                                                                                                                                                                                                                       



14



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| |                
| | ---------------
| | Growth Strategy





| |                            
| | ---------------------------
| | 1. Drive Profitable Growth:



| |                                                                                                                                                                                                                                                                                                                                                                                
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | With a more focused portfolio, Heinz will devote its energy and
    resources primarily to the six major developed markets of the
    U.S., Canada, U.K., Italy, Western Europe and Australia/New
    Zealand. In these markets, Heinz will increase consumer insights
    to improve value to customers and consumers.                                                        
|
| | We will also focus on the key emerging markets of Russia, India,
    China, Indonesia and Poland. These markets represent over 40% of
    the worlds population and 15% of the worlds GDP
    growth. Heinz has good, profitable businesses in each of these
    markets and will be looking to drive strong growth with products
    designed for local tastes and cultures.



| |                                  
| | ---------------------------------
| | 2. Further Simplify the Business:



| |                                                                               
| | ------------------------------------------------------------------------------
| | Heinz will continue to improve its effectiveness and reduce
    complexity by:



| |   |                                                                                        
| | - | ---------------------------------------------------------------------------------------
| |  | Pruning those few remaining businesses that do not fit with our
    long-term strategy;
|
| |  | Eliminating non-value-added facilities and SKUs;                                      
|
| |  | Continued de-layering of the organization; and                                         
|
| |  | Establishing
    best-in-class processes
    and systems around the globe.             



| |                                    
| | -----------------------------------
| | 3. Reduce Costs to Improve Margins:



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | In the face of recent increases in fuel, commodity, pension and
    compliance costs, Heinz has plans to improve gross margins and
    operating margins. These plans include initiatives to drive
    efficiency in trade spending, enhance sales mix, accelerate
    global procurement, improve supply chain processes/tools and
    reduce general and administrative costs. All of these
    initiatives are expected to improve operating margins and
    provide the fuel for additional growth.



| |                                   
| | ----------------------------------
| | 4. Achieve Operational Excellence:



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We continue to attract, develop and retain great leadership and
    talent. Our key leaders are instilling the discipline to
    establish exceptional Sales & Operating Planning
    processes and are supporting this process with
    best-in-class systems,
    such as SAP, Siebel, MEI and Manugistics. Through this focus by
    senior management and the Board of Directors, we are
    establishing ehnanced organizational capabilities and
    performance.



| |                                                 
| | ------------------------------------------------
| | 5. Drive Cash Flow to Improve Shareholder Value:



| |                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Building from our increased cash flow from operations over the
    last few years, we intend to continue driving cash flow to
    leverage value. Going forward, the key sources of cash flow are
    expected to be faster earnings growth, continued reduction of
    the cash conversion cycle (CCC), strong discipline on capital
    spending and the sale of underutilized assets (including
    additional pruning of the portfolio).

Strategic Transformation




15



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| |                   
| | ------------------
| | HP/ LP Acquisition

® ® ®




| |                                           
| | ------------------------------------------
| | Heinz Global Innovation and Quality Center

100,000-square






| |                        
| | -----------------------
| | Discontinued Operations



John
West ® Petit
Navire ® Marie
Elisabeth ® Mareblu ® Tegel ®






16



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##### Table of Contents



Transformation Costs






| |                     
| | --------------------
| | Reorganization Costs









| |                                       
| | --------------------------------------
| | Other Divestitures/ Impairment Charges



|                                                           |  |                  |  |               |        |   |           |   |        |  
|---------------------------------------------------------- |  | ---------------- |  | ------------- | ------ | - | --------- | - | ------ | -
|Business or Product Line                                   |  | Segment          |  | Pre-Tax       |        |   | After-Tax |  
|                                                           |  |                  |  |               |        |   |           |  
|                                                           |  |                  |  | (in millions) |       
|                                                           |  |                  |  |               |       
|Loss on sale of Seafood business in Israel                 |  | Other Operating  |  | $             | (15.9  | ) |           | $ | (15.9  | )
|Impairment charge on Portion Pac Bulk product line         |  | U.S. Foodservice |  |               | (21.5  | ) |           |   | (13.3  | )
|Impairment charge on U.K. Frozen and Chilled product lines |  | Europe           |  |               | (15.2  | ) |           |   | (15.2  | )
|Impairment charge on European production assets            |  | Europe           |  |               | (18.7  | ) |           |   | (18.7  | )
|Impairment charge on Noodle product line in Indonesia      |  | Asia/Pacific     |  |               | (15.8  | ) |           |   | (8.5   | )
|Impairment charge on investment in Zimbabwe business       |  | Other Operating  |  |               | (111.0 | ) |           |   | (105.6 | )
|Other                                                      |  | Various          |  |               | (1.5   | ) |           |   | 0.5    |  
|                                                           |  |                  |  |               |        |   |           |  
|Total                                                      |  |                  |  | $             | (199.6 | ) |           | $ | (176.7 | )
|                                                           |  |                  |  |               |        |   |           |  





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e-commerce


HAK ®






| |                                                     
| | ----------------------------------------------------
| | Other Non-recurring  American Jobs Creation
    Act



|                          |                                      |                       |         |  |       | 
|------------------------- | ------------------------------------ | --------------------- | ------- |  | ----- | 
|                          |                                      | In millions           |        
|                          |                                      |                       |        
|Non-taxable repatriations |                                      | $                     | 472.7   | 
|Taxable repatriations:    |                                      |                       |         | 
|                          | Planned at beginning of Fiscal 2006: |                       |         |  |      
|                          |                                      | Eligible for AJCA     |         |  | 162.5 | 
|                          |                                      | Not eligible for AJCA |         |  | 12.1  | 
|                          | Incremental dividends:               |                       |         |  |      
|                          |                                      | Eligible for AJCA     |         |  | 425.4 | 
|                          |                                      | Not eligible for AJCA |         |  | 253.5 | 
|                          |                                      |                       |        
|Total cash repatriations  |                                      | $                     | 1,326.2 | 
|                          |                                      |                       |        



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Results of Continuing Operations




|                   |  |                        |           |  |            |   |           |            |  |   |           | 
|------------------ |  | ---------------------- | --------- |  | ---------- | - | --------- | ---------- |  | - | --------- | 
|                   |  | Fiscal Year Ended      |          
|                   |  |                        |          
|                   |  | May 3,                 |           |  | April 27,  |   |           | April 28,  | 
|                   |  | 2006                   |           |  | 2005       |   |           | 2004       | 
|                   |  | (53 Weeks)             |           |  | (52 Weeks) |   |           | (52 Weeks) | 
|                   |  |                        |           |  |            |   |           |            | 
|                   |  | (Dollars in thousands) |          
|Ketchup and sauces |  | $                      | 3,530,346 |  |            | $ | 3,234,229 |            |  | $ | 3,047,662 | 
|Meals and snacks   |  |                        | 3,876,743 |  |            |   | 3,680,920 |            |  |   | 3,309,831 | 
|Infant foods       |  |                        | 863,943   |  |            |   | 855,558   |            |  |   | 908,469   | 
|Other              |  |                        | 372,406   |  |            |   | 332,749   |            |  |   | 359,869   | 
|                   |  |                        |           |  |            |   |           |            | 
|Total              |  | $                      | 8,643,438 |  |            | $ | 8,103,456 |            |  | $ | 7,625,831 | 
|                   |  |                        |           |  |            |   |           |            | 



| |                                                      
| | -----------------------------------------------------
| | Fiscal Years Ended May 3, 2006 and April 27,
    2005













19



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##### Table of Contents







FISCAL YEAR 2006 OPERATING RESULTS BY BUSINESS SEGMENT


North American Consumer Products


Heinz ® TGI
Fridays ® Delimex ® Classico ® Smart
Ones ® Ore-Ida ®




U.S. Foodservice


Heinz ®




Europe




20



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Heinz ® Heinz ®




Asia/ Pacific






Other Operating Entities








21



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| |                                                         
| | --------------------------------------------------------
| | Fiscal Years Ended April 27, 2005 and April 28,
    2004



HAK®










22



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##### Table of Contents









FISCAL YEAR 2005 OPERATING RESULTS BY BUSINESS SEGMENT


North American Consumer Products


Ore-Ida® SmartOnes® Ore-Ida® Easy
Fries® SmartOnes® Boston Market
HomeStyle® Delimex® ® TGI
Fridays® SmartOnes® Ore-Ida® Classico® Heinz® Ethnic Gourmet
Food® Rosetto®




U.S. Foodservice


Heinz® Truesoups®




23



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Europe


Heinz® Heinz® ready-to Heinz® ready-to


HAK ®


Asia/ Pacific






Other Operating Entities




24



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Liquidity and Financial Position




step-up step-up,


Tegel ® HAK ®


 




Tegel ®


25



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HAK ® e-commerce










Contractual Obligations and Other Commitments


Contractual Obligations




26



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##### Table of Contents





|                                                          |       |           |         |         |           |   |         |           |           |   |         |           |  |       |           |           |  |   |           |           | 
|--------------------------------------------------------- | ----- | --------- | ------- | ------- | --------- | - | ------- | --------- | --------- | - | ------- | --------- |  | ----- | --------- | --------- |  | - | --------- | --------- | 
|                                                          |       | Less than |         |         |           |   |         |           | More than |   |         |          
|                                                          |       | 1 year    |         |         | 1-3 years |   |         | 3-5 years |           |   | 5 years |           |  | Total |          
|                                                          |       |           |         |         |           |   |         |           |           |   |         |           |  |       |          
|Long Term Debt                                            |       | $         | 333     |         |           | $ | 625,314 |           |           | $ | 589,361 |           |  | $     | 3,136,114 |           |  | $ | 4,351,122 |          
|Capital Lease Obligations                                 |       |           | 8,190   |         |           |   | 19,305  |           |           |   | 18,277  |           |  |       | 64,404    |           |  |   | 110,176   |          
|Operating Leases                                          |       |           | 73,097  |         |           |   | 115,459 |           |           |   | 81,198  |           |  |       | 211,425   |           |  |   | 481,179   |          
|Purchase Obligations                                      |       |           | 770,202 |         |           |   | 771,553 |           |           |   | 300,245 |           |  |       | 56,699    |           |  |   | 1,898,699 |          
|Other Long Term Liabilities Recorded on the Balance Sheet |       |           | 98,951  |         |           |   | 198,494 |           |           |   | 196,468 |           |  |       | 164,658   |           |  |   | 658,571   |          
|                                                          |       |           |         |         |           |   |         |           |           |   |         |           |  |       |          
|                                                          | Total |           | $       | 950,773 |           |   | $       | 1,730,125 |           |   | $       | 1,185,549 |  |       | $         | 3,633,300 |  |   | $         | 7,499,747 | 
|                                                          |       |           |         |         |           |   |         |           |           |   |         |           |  |       |          



Off-Balance Sheet Arrangements and Other Commitments




Market Risk Factors




Foreign Exchange Rate Sensitivity:




27



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|                                                                                                          |  |                           |       |  |                               |   |       |             |  |   |                |   |  |   |      |  
|--------------------------------------------------------------------------------------------------------- |  | ------------------------- | ----- |  | ----------------------------- | - | ----- | ----------- |  | - | -------------- | - |  | - | ---- | -
|                                                                                                          |  | Aggregate Notional Amount |       |  | Net Unrealized Gains/(Losses) |  
|                                                                                                          |  |                           |       |  |                               |  
|                                                                                                          |  | May 3, 2006               |       |  | April 27, 2005                |   |       | May 3, 2006 |  |   | April 27, 2005 |  
|                                                                                                          |  |                           |       |  |                               |   |       |             |  |   |                |  
|                                                                                                          |  | (Dollars in millions)     |      
|Purpose of Hedge:                                                                                         |  |                           |       |  |                               |   |       |             |  |   |                |   |  |   |      |  
|Intercompany cash flows                                                                                   |  | $                         | 652   |  |                               | $ | 737   |             |  | $ | 5.4            |   |  | $ | (1.7 | )
|Forecasted purchases of raw materials and finished goods and
    foreign currency denominated obligations |  |                           | 346   |  |                               |   | 417   |             |  |   | (1.3           | ) |  |   | (7.1 | )
|Forecasted sales and foreign currency denominated assets                                                  |  |                           | 153   |  |                               |   | 115   |             |  |   | (4.3           | ) |  |   | 1.8  |  
|Net investments in foreign operations                                                                     |  |                           | 1,855 |  |                               |   |      |             |  |   | (42.2          | ) |  |   |     |  
|                                                                                                          |  |                           |       |  |                               |   |       |             |  |   |                |  
|                                                                                                          |  | $                         | 3,006 |  |                               | $ | 1,269 |             |  | $ | (42.4          | ) |  | $ | (7.0 | )
|                                                                                                          |  |                           |       |  |                               |   |       |             |  |   |                |  





Interest Rate Sensitivity:




|                                   |  |                       |         |   |                |   |         |  
|---------------------------------- |  | --------------------- | ------- | - | -------------- | - | ------- | -
|                                   |  | May 3, 2006           |         |   | April 27, 2005 |  
|                                   |  |                       |         |   |                |  
|                                   |  | (Dollars in millions) |        
|Pay floating swapsnotional amount |  | $                     | 2,615.4 |   |                | $ | 2,767.4 |  
|Net unrealized (losses)/gains      |  | $                     | (1.4    | ) |                | $ | 186.1   |  
|Weighted average maturity (years)  |  |                       | 10.0    |   |                |   | 11.4    |  
|Weighted average receive rate      |  |                       | 6.37    | % |                |   | 6.37    | %
|Weighted average pay rate          |  |                       | 5.07    | % |                |   | 2.95    | %



28



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mark-to


Effect of Hypothetical 10% Fluctuation in Market
Prices:


|                             |  |                   |     | 
|---------------------------- |  | ----------------- | --- | 
|                             |  | Fair Value Effect |    
|                             |  |                   |    
|                             |  | (Dollars in       |    
|                             |  | millions)         |    
|Foreign currency contracts   |  | $                 | 298 | 
|Interest rate swap contracts |  | $                 | 95  | 



Recently Issued Accounting Standards




Discussion of Significant Accounting Estimates




Marketing Costs


29



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Investments and Long-lived Assets and Property, Plant and
Equipment


Goodwill and Indefinite Lived Intangibles


Retirement Benefits


30



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31



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| |                           
| | --------------------------
| | Sensitivity of Assumptions



|                                                                               |  |                 |        |   |          |   |       | 
|------------------------------------------------------------------------------ |  | --------------- | ------ | - | -------- | - | ----- | 
|                                                                               |  | 100 Basis Point |       
|                                                                               |  |                 |       
|                                                                               |  | Increase        |        |   | Decrease |  
|                                                                               |  |                 |        |   |          |  
|Pension benefits                                                               |  |                 |        |   |          |   |       | 
|Discount rate used in determining projected benefit obligation                 |  | $               | (355.6 | ) |          | $ | 422.5 | 
|Discount rate used in determining net pension expense                          |  | $               | (33.9  | ) |          | $ | 36.1  | 
|Long-term rate of return on assets used in determining net
    pension expense |  | $               | (23.8  | ) |          | $ | 23.8  | 
|Other benefits                                                                 |  |                 |        |   |          |   |       | 
|Discount rate used in determining projected benefit obligation                 |  | $               | (23.3  | ) |          | $ | 24.9  | 
|Discount rate used in determining net benefit expense                          |  | $               | (2.3   | ) |          | $ | 2.8   | 

Income Taxes






Inflation






32



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Stock Market Information






|       |  |                   |       |  |     |   |       | 
|------ |  | ----------------- | ----- |  | --- | - | ----- | 
|       |  | Stock Price Range |      
|       |  |                   |      
|       |  | High              |       |  | Low |  
|       |  |                   |       |  |     |  
|2006   |  |                   |       |  |     |   |       | 
|First  |  | $                 | 37.87 |  |     | $ | 34.87 | 
|Second |  |                   | 37.42 |  |     |   | 34.01 | 
|Third  |  |                   | 35.97 |  |     |   | 33.42 | 
|Fourth |  |                   | 42.79 |  |     |   | 33.48 | 
|2005   |  |                   |       |  |     |   |       | 
|First  |  | $                 | 39.41 |  |     | $ | 36.30 | 
|Second |  |                   | 38.43 |  |     |   | 34.53 | 
|Third  |  |                   | 40.61 |  |     |   | 35.51 | 
|Fourth |  |                   | 38.16 |  |     |   | 35.06 | 



|         |                                                                
|-------- | ---------------------------------------------------------------
|Item 7A. | Quantitative and Qualitative Disclosures About Market
    Risk.



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[This Page Intentionally
Left Blank]


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##### 












|        |                                             
|------- | --------------------------------------------
|Item 8. | Financial Statements and Supplementary Data.

TABLE OF CONTENTS


|                                                                      |  |  |    | 
|--------------------------------------------------------------------- |  |  | -- | 
|Report of Management on Internal Control
    over Financial Reporting |  |  | 36 | 
|Report of Independent Registered Public
    Accounting Firm           |  |  | 37 | 
|Consolidated Statements of Income                                     |  |  | 39 | 
|Consolidated Balance Sheets                                           |  |  | 40 | 
|Consolidated Statements of
    Shareholders Equity                   |  |  | 42 | 
|Consolidated Statements of Cash Flows                                 |  |  | 44 | 
|Notes to Consolidated Financial
    Statements                        |  |  | 45 | 
|EX-10(A)(XXVII)                                                      
|EX-10(A)(XXXV)                                                       
|EX-10(A)(XXXVI)                                                      
|EX-10(A)(XXXVII)                                                     
|EX-12                                                                
|EX-21                                                                
|EX-24                                                                
|EX-31(A)                                                             
|EX-31(B)                                                             
|EX-32(A)                                                             
|EX-32(B)                                                             



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Report of Management on Internal Control over Financial
Reporting
















| |                              
| | -----------------------------
| | /s/     William R. Johnson   
| | Chairman, President and      
| | Chief Executive Officer      
|
| | /s/     Arthur B. Winkleblack
| | Executive Vice President and 
| | Chief Financial Officer      



36



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Report of Independent Registered Public Accounting Firm








Consolidated financial statements and financial statement
schedule




Internal control over financial reporting


Internal Control  Integrated Framework Internal Control 
Integrated Framework


37



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PricewaterhouseCoopers
LLP






38



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H. J. Heinz Company and Subsidiaries





Consolidated Statements of Income


|                                                         |         |                                           |            |   |                |      |           |                |         |      |           |   |         |      | 
|-------------------------------------------------------- | ------- | ----------------------------------------- | ---------- | - | -------------- | ---- | --------- | -------------- | ------- | ---- | --------- | - | ------- | ---- | 
|                                                         |         | Fiscal Year Ended                         |           
|                                                         |         |                                           |           
|                                                         |         | May 3, 2006                               |            |   | April 27, 2005 |      |           | April 28, 2004 |        
|                                                         |         | (53 Weeks)                                |            |   | (52 Weeks)     |      |           | (52 Weeks)     |        
|                                                         |         |                                           |            |   |                |      |           |                |        
|                                                         |         | (In thousands, except per share amounts)  |           
|Sales                                                    |         | $                                         | 8,643,438  |   |                | $    | 8,103,456 |                |         | $    | 7,625,831 |  
|Cost of products sold                                    |         |                                           | 5,550,364  |   |                |      | 5,069,926 |                |         |      | 4,733,314 |  
|                                                         |         |                                           |            |   |                |      |           |                |        
|Gross profit                                             |         |                                           | 3,093,074  |   |                |      | 3,033,530 |                |         |      | 2,892,517 |  
|Selling, general and administrative expenses             |         |                                           | 1,979,462  |   |                |      | 1,752,058 |                |         |      | 1,616,428 |  
|                                                         |         |                                           |            |   |                |      |           |                |        
|Operating income                                         |         |                                           | 1,113,612  |   |                |      | 1,281,472 |                |         |      | 1,276,089 |  
|Interest income                                          |         |                                           | 33,190     |   |                |      | 26,939    |                |         |      | 24,547    |  
|Interest expense                                         |         |                                           | 316,296    |   |                |      | 232,088   |                |         |      | 211,382   |  
|Asset impairment charges for cost and equity investments |         |                                           | 110,994    |   |                |      | 73,842    |                |         |      |          |  
|Other expense, net                                       |         |                                           | 26,051     |   |                |      | 14,966    |                |         |      | 21,686    |  
|                                                         |         |                                           |            |   |                |      |           |                |        
|Income from continuing operations before income taxes    |         |                                           | 693,461    |   |                |      | 987,515   |                |         |      | 1,067,568 |  
|Provision for income taxes                               |         |                                           | 250,700    |   |                |      | 299,511   |                |         |      | 352,117   |  
|                                                         |         |                                           |            |   |                |      |           |                |        
|Income from continuing operations                        |         |                                           | 442,761    |   |                |      | 688,004   |                |         |      | 715,451   |  
|Income from discontinued operations, net of tax          |         |                                           | 202,842    |   |                |      | 64,695    |                |         |      | 88,822    |  
|                                                         |         |                                           |            |   |                |      |           |                |        
|Net income                                               |         | $                                         | 645,603    |   |                | $    | 752,699   |                |         | $    | 804,273   |  
|                                                         |         |                                           |            |   |                |      |           |                |        
|Income Per Common Share:                                 |         |                                           |            |   |                |      |           |                |         |      |           |  
|                                                         | Diluted |                                           |            |   |                |      |           |                |         |      |           |   |        
|                                                         |         | Continuing operations                     |            | $ | 1.29           |      |           | $              | 1.95    |      |           | $ | 2.02    |     
|                                                         |         | Discontinued operations                   |            |   | 0.59           |      |           |                | 0.18    |      |           |   | 0.25    |     
|                                                         |         |                                           |            |   |                |      |           |                |        
|                                                         |         |                                           | Net Income |   | $              | 1.89 |           |                | $       | 2.13 |           |   | $       | 2.27 | 
|                                                         |         |                                           |            |   |                |      |           |                |        
|                                                         |         | Average common shares outstandingDiluted |            |   | 342,121        |      |           |                | 353,450 |      |           |   | 354,372 |     
|                                                         |         |                                           |            |   |                |      |           |                |        
|                                                         | Basic   |                                           |            |   |                |      |           |                |         |      |           |   |        
|                                                         |         | Continuing operations                     |            | $ | 1.31           |      |           | $              | 1.97    |      |           | $ | 2.03    |     
|                                                         |         | Discontinued operations                   |            |   | 0.60           |      |           |                | 0.18    |      |           |   | 0.25    |     
|                                                         |         |                                           |            |   |                |      |           |                |        
|                                                         |         |                                           | Net Income |   | $              | 1.90 |           |                | $       | 2.15 |           |   | $       | 2.29 | 
|                                                         |         |                                           |            |   |                |      |           |                |        
|                                                         |         | Average common shares outstandingBasic   |            |   | 339,102        |      |           |                | 350,042 |      |           |   | 351,810 |     
|                                                         |         |                                           |            |   |                |      |           |                |        
|Cash dividends per share                                 |         | $                                         | 1.20       |   |                | $    | 1.14      |                |         | $    | 1.08      |  
|                                                         |         |                                           |            |   |                |      |           |                |        



39



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H. J. Heinz Company and Subsidiaries





Consolidated Balance Sheets


|                               |                                                                    |                                      |                                          |           |           |           |           |           |           |            | 
|------------------------------ | ------------------------------------------------------------------ | ------------------------------------ | ---------------------------------------- | --------- | --------- | --------- | --------- | --------- | --------- | ---------- | 
|                               |                                                                    | May 3,                               |                                          |           | April 27, |          
|                               |                                                                    | 2006                                 |                                          |           | 2005      |          
|                               |                                                                    |                                      |                                          |           |           |          
|                               |                                                                    | (Dollars in thousands)               |                                         
|Assets                         |                                                                    |                                      |                                          |           |           |           |           |          
|Current assets:                |                                                                    |                                      |                                          |           |           |           |           |          
|                               | Cash and cash equivalents                                          |                                      | $                                        | 445,427   |           |           | $         | 1,083,749 |          
|                               | Receivables (net of allowances: 2006$16,988 and
    2005$21,844) |                                      |                                          | 1,002,125 |           |           |           | 1,092,394 |          
|                               | Inventories:                                                       |                                      |                                          |           |           |           |           |           |          
|                               |                                                                    | Finished goods and work-in-process   |                                          |           | 817,037   |           |           |           | 974,974   |           
|                               |                                                                    | Packing material and ingredients     |                                          |           | 256,645   |           |           |           | 281,802   |           
|                               |                                                                    |                                      |                                          |           |           |          
|                               |                                                                    |                                      | Total inventories                        |           |           | 1,073,682 |           |           |           | 1,256,776  | 
|                               | Prepaid expenses                                                   |                                      |                                          | 139,714   |           |           |           | 174,818   |          
|                               | Other current assets                                               |                                      |                                          | 42,987    |           |           |           | 37,839    |          
|                               |                                                                    |                                      |                                          |           |           |          
|                               |                                                                    |                                      | Total current assets                     |           |           | 2,703,935 |           |           |           | 3,645,576  | 
|                               |                                                                    |                                      |                                          |           |           |          
|Property, plant and equipment: |                                                                    |                                      |                                          |           |           |           |           |          
|                               |                                                                    | Land                                 |                                          |           | 55,167    |           |           |           | 67,000    |           
|                               |                                                                    | Buildings and leasehold improvements |                                          |           | 762,735   |           |           |           | 844,056   |           
|                               |                                                                    | Equipment, furniture and other       |                                          |           | 2,946,574 |           |           |           | 3,111,663 |           
|                               |                                                                    |                                      |                                          |           |           |          
|                               |                                                                    |                                      | 3,764,476                                |           |           |           | 4,022,719 |          
|                               | Less accumulated depreciation                                      |                                      |                                          | 1,863,919 |           |           |           | 1,858,781 |          
|                               |                                                                    |                                      |                                          |           |           |          
|                               |                                                                    |                                      | Total property, plant and equipment, net |           |           | 1,900,557 |           |           |           | 2,163,938  | 
|                               |                                                                    |                                      |                                          |           |           |          
|Other non-current assets:      |                                                                    |                                      |                                          |           |           |           |           |          
|                               | Goodwill                                                           |                                      |                                          | 2,822,567 |           |           |           | 2,138,499 |          
|                               | Trademarks, net                                                    |                                      |                                          | 776,857   |           |           |           | 651,552   |          
|                               | Other intangibles, net                                             |                                      |                                          | 269,564   |           |           |           | 171,675   |          
|                               | Other non-current assets                                           |                                      |                                          | 1,264,287 |           |           |           | 1,806,478 |          
|                               |                                                                    |                                      |                                          |           |           |          
|                               |                                                                    |                                      | Total other non-current assets           |           |           | 5,133,275 |           |           |           | 4,768,204  | 
|                               |                                                                    |                                      |                                          |           |           |          
|                               |                                                                    |                                      | Total assets                             |           | $         | 9,737,767 |           |           | $         | 10,577,718 | 
|                               |                                                                    |                                      |                                          |           |           |          



40



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H. J. Heinz Company and Subsidiaries


Consolidated Balance Sheets


|                                      |                                                                                                          |                                                                   |                                            |           |           |           |           |           |         |            | 
|------------------------------------- | -------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------- | ------------------------------------------ | --------- | --------- | --------- | --------- | --------- | ------- | ---------- | 
|                                      |                                                                                                          | May 3,                                                            |                                            |           | April 27, |          
|                                      |                                                                                                          | 2006                                                              |                                            |           | 2005      |          
|                                      |                                                                                                          |                                                                   |                                            |           |           |          
|                                      |                                                                                                          | (Dollars in thousands)                                            |                                           
|Liabilities and Shareholders Equity  |                                                                                                          |                                                                   |                                            |           |           |           |           |          
|Current liabilities:                  |                                                                                                          |                                                                   |                                            |           |           |           |           |          
|                                      | Short-term debt                                                                                          |                                                                   | $                                          | 54,052    |           |           | $         | 28,471    |        
|                                      | Portion of long-term debt due within one year                                                            |                                                                   |                                            | 917       |           |           |           | 544,798   |        
|                                      | Accounts payable                                                                                         |                                                                   |                                            | 1,035,084 |           |           |           | 1,181,652 |        
|                                      | Salaries and wages                                                                                       |                                                                   |                                            | 84,815    |           |           |           | 76,020    |        
|                                      | Accrued marketing                                                                                        |                                                                   |                                            | 216,267   |           |           |           | 260,550   |        
|                                      | Other accrued liabilities                                                                                |                                                                   |                                            | 476,683   |           |           |           | 365,022   |        
|                                      | Income taxes                                                                                             |                                                                   |                                            | 150,413   |           |           |           | 130,555   |        
|                                      |                                                                                                          |                                                                   |                                            |           |           |          
|                                      |                                                                                                          |                                                                   | Total current liabilities                  |           |           | 2,018,231 |           |           |         | 2,587,068  | 
|                                      |                                                                                                          |                                                                   |                                            |           |           |          
|Long-term debt and other liabilities: |                                                                                                          |                                                                   |                                            |           |           |           |           |          
|                                      | Long-term debt                                                                                           |                                                                   |                                            | 4,357,013 |           |           |           | 4,121,984 |        
|                                      | Deferred income taxes                                                                                    |                                                                   |                                            | 518,724   |           |           |           | 508,639   |        
|                                      | Non-pension postretirement benefits                                                                      |                                                                   |                                            | 207,840   |           |           |           | 196,686   |        
|                                      | Minority interest                                                                                        |                                                                   |                                            | 120,152   |           |           |           | 114,833   |        
|                                      | Other                                                                                                    |                                                                   |                                            | 466,984   |           |           |           | 445,935   |        
|                                      |                                                                                                          |                                                                   |                                            |           |           |          
|                                      |                                                                                                          |                                                                   | Total long-term debt and other liabilities |           |           | 5,670,713 |           |           |         | 5,388,077  | 
|                                      |                                                                                                          |                                                                   |                                            |           |           |          
|Shareholders equity:                 |                                                                                                          |                                                                   |                                            |           |           |           |           |          
|                                      | Capital stock:                                                                                           |                                                                   |                                            |           |           |           |           |           |        
|                                      |                                                                                                          | Third cumulative preferred, $1.70 first series, $10 par
    value |                                            |           | 82        |           |           |           | 83      |           
|                                      |                                                                                                          | Common stock, 431,096,486 shares issued, $0.25 par
    value      |                                            |           | 107,774   |           |           |           | 107,774 |           
|                                      |                                                                                                          |                                                                   |                                            |           |           |          
|                                      |                                                                                                          |                                                                   | 107,856                                    |           |           |           | 107,857   |          
|                                      | Additional capital                                                                                       |                                                                   |                                            | 502,235   |           |           |           | 430,073   |        
|                                      | Retained earnings                                                                                        |                                                                   |                                            | 5,454,108 |           |           |           | 5,210,748 |        
|                                      |                                                                                                          |                                                                   |                                            |           |           |          
|                                      |                                                                                                          |                                                                   | 6,064,199                                  |           |           |           | 5,748,678 |          
|                                      | Less:                                                                                                    |                                                                   |                                            |           |           |           |           |           |        
|                                      | Treasury shares, at cost (100,339,405 shares at May 3,
    2006 and 83,419,356 shares at April 27, 2005) |                                                                   |                                            | 3,852,220 |           |           |           | 3,140,586 |        
|                                      | Unearned compensation                                                                                    |                                                                   |                                            | 32,773    |           |           |           | 31,141    |        
|                                      | Accumulated other comprehensive loss/(income)                                                            |                                                                   |                                            | 130,383   |           |           |           | (25,622   | )      
|                                      |                                                                                                          |                                                                   |                                            |           |           |          
|                                      |                                                                                                          |                                                                   | Total shareholders equity                 |           |           | 2,048,823 |           |           |         | 2,602,573  | 
|                                      |                                                                                                          |                                                                   |                                            |           |           |          
|                                      |                                                                                                          |                                                                   | Total liabilities and shareholders equity |           | $         | 9,737,767 |           |           | $       | 10,577,718 | 
|                                      |                                                                                                          |                                                                   |                                            |           |           |          



41



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##### Table of Contents





H.J. Heinz Company and Subsidiaries





Consolidated Statements of Shareholders Equity


|                                                            |                                                |                                                                              |           |                 |          |   |              |         |  |   |        |   |  |         |         |  |  |   |         |  |  | 
|----------------------------------------------------------- | ---------------------------------------------- | ---------------------------------------------------------------------------- | --------- | --------------- | -------- | - | ------------ | ------- |  | - | ------ | - |  | ------- | ------- |  |  | - | ------- |  |  | 
|                                                            |                                                |                                                                              |           | Preferred Stock |          |   | Common Stock |        
|                                                            |                                                | Comprehensive                                                                |           |                 |          |   |              |         | 
|                                                            |                                                | Income                                                                       |           |                 | Shares   |   |              | Dollars |  |   | Shares |   |  | Dollars |        
|                                                            |                                                |                                                                              |           |                 |          |   |              |         |  |   |        |   |  |         |        
|                                                            |                                                | (Amounts in thousands, except per share amounts)                             |          
|Balance at April 30, 2003                                   |                                                |                                                                              |           |                 |          |   | 11           |         |  | $ | 106    |   |  |         | 431,096 |  |  | $ | 107,774 | 
|Comprehensive income2004:                                  |                                                |                                                                              |           |                 |          |   |              |         |  |   |        |   |  |         |         |  |  |   |         | 
|                                                            | Net income2004                                |                                                                              | $         | 804,273         |          |   |              |         |  |   |        |   |  |         |         |  |  |   |         |  | 
|                                                            | Other comprehensive income (loss), net of tax: |                                                                              |           |                 |          |   |              |         |  |   |        |   |  |         |         |  |  |   |         |  | 
|                                                            |                                                | Minimum pension liability, net of $53,166 tax benefit                        |           |                 | 105,535  |   |              |         |  |   |        |   |  |         |         |  |  |   |         |  |  | 
|                                                            |                                                | Unrealized translation adjustments, net of $7,463 tax benefit                |           |                 | 210,017  |   |              |         |  |   |        |   |  |         |         |  |  |   |         |  |  | 
|                                                            |                                                | Net change in fair value of cash flow hedges                                 |           |                 | (15,196  | ) |              |         |  |   |        |   |  |         |         |  |  |   |         |  |  | 
|                                                            |                                                | Net hedging losses reclassified into earnings, net of $2,113 tax
    benefit |           |                 | 3,253    |   |              |         |  |   |        |   |  |         |         |  |  |   |         |  |  | 
|                                                            |                                                |                                                                              |           |                 |          |   |              |         |  |   |        |   |  |         |        
|Comprehensive income                                        |                                                | $                                                                            | 1,107,882 |                 |          |   |              |         |  |   |        |   |  |         |         |  |  |   |         | 
|                                                            |                                                |                                                                              |           |                 |          |   |              |         |  |   |        |   |  |         |        
|Cash dividends:                                             |                                                |                                                                              |           |                 |          |   |              |         |  |   |        |   |  |         |         |  |  |   |         | 
|                                                            |                                                | Preferred @ $1.70 per share                                                  |           |                 |          |   |              |         |  |   |        |   |  |         |         |  |  |   |         |  |  | 
|                                                            |                                                | Common @ $1.08 per share                                                     |           |                 |          |   |              |         |  |   |        |   |  |         |         |  |  |   |         |  |  | 
|Shares reacquired                                           |                                                |                                                                              |           |                 |          |   |              |         |  |   |        |   |  |         |         |  |  |   |         | 
|Conversion of preferred into common stock                   |                                                |                                                                              |           |                 |          |   | (1           | )       |  |   | (12    | ) |  |         |         |  |  |   |         | 
|Stock options exercised, net of shares tendered for payment |                                                |                                                                              |           |                 |          |   |              |         |  |   |        |   |  |         |         |  |  |   |         | 
|Restricted stock unit activity                              |                                                |                                                                              |           |                 |          |   |              |         |  |   |        |   |  |         |         |  |  |   |         | 
|Other, net*                                                 |                                                |                                                                              |           |                 |          |   |              |         |  |   |        |   |  |         |         |  |  |   |         | 
|                                                            |                                                |                                                                              |           |                 |          |   |              |         |  |   |        |   |  |         |        
|Balance at April 28, 2004                                   |                                                |                                                                              |           |                 |          |   | 10           |         |  |   | 94     |   |  |         | 431,096 |  |  |   | 107,774 | 
|Comprehensive income2005:                                  |                                                |                                                                              |           |                 |          |   |              |         |  |   |        |   |  |         |         |  |  |   |         | 
|                                                            | Net income2005                                |                                                                              | $         | 752,699         |          |   |              |         |  |   |        |   |  |         |         |  |  |   |         |  | 
|                                                            | Other comprehensive income (loss), net of tax: |                                                                              |           |                 |          |   |              |         |  |   |        |   |  |         |         |  |  |   |         |  | 
|                                                            |                                                | Minimum pension liability, net of $116,117 tax expense                       |           |                 | 273,934  |   |              |         |  |   |        |   |  |         |         |  |  |   |         |  |  | 
|                                                            |                                                | Unrealized translation adjustments, net of $32,768 tax expense               |           |                 | 263,585  |   |              |         |  |   |        |   |  |         |         |  |  |   |         |  |  | 
|                                                            |                                                | Net change in fair value of cash flow hedges                                 |           |                 | 23,754   |   |              |         |  |   |        |   |  |         |         |  |  |   |         |  |  | 
|                                                            |                                                | Net hedging gains reclassified into earnings, net of $14,556 tax
    expense |           |                 | (22,125  | ) |              |         |  |   |        |   |  |         |         |  |  |   |         |  |  | 
|                                                            |                                                |                                                                              |           |                 |          |   |              |         |  |   |        |   |  |         |        
|Comprehensive income                                        |                                                | $                                                                            | 1,291,847 |                 |          |   |              |         |  |   |        |   |  |         |         |  |  |   |         | 
|                                                            |                                                |                                                                              |           |                 |          |   |              |         |  |   |        |   |  |         |        
|Cash dividends:                                             |                                                |                                                                              |           |                 |          |   |              |         |  |   |        |   |  |         |         |  |  |   |         | 
|                                                            |                                                | Preferred @ $1.70 per share                                                  |           |                 |          |   |              |         |  |   |        |   |  |         |         |  |  |   |         |  |  | 
|                                                            |                                                | Common @ $1.14 per share                                                     |           |                 |          |   |              |         |  |   |        |   |  |         |         |  |  |   |         |  |  | 
|Shares reacquired                                           |                                                |                                                                              |           |                 |          |   |              |         |  |   |        |   |  |         |         |  |  |   |         | 
|Conversion of preferred into common stock                   |                                                |                                                                              |           |                 |          |   | (1           | )       |  |   | (11    | ) |  |         |         |  |  |   |         | 
|Stock options exercised, net of shares tendered for payment |                                                |                                                                              |           |                 |          |   |              |         |  |   |        |   |  |         |         |  |  |   |         | 
|Restricted stock unit activity                              |                                                |                                                                              |           |                 |          |   |              |         |  |   |        |   |  |         |         |  |  |   |         | 
|Other, net*                                                 |                                                |                                                                              |           |                 |          |   |              |         |  |   |        |   |  |         |         |  |  |   |         | 
|                                                            |                                                |                                                                              |           |                 |          |   |              |         |  |   |        |   |  |         |        
|Balance at April 27, 2005                                   |                                                |                                                                              |           |                 |          |   | 9            |         |  |   | 83     |   |  |         | 431,096 |  |  |   | 107,774 | 
|Comprehensive income2006:                                  |                                                |                                                                              |           |                 |          |   |              |         |  |   |        |   |  |         |         |  |  |   |         | 
|                                                            | Net income2006                                |                                                                              | $         | 645,603         |          |   |              |         |  |   |        |   |  |         |         |  |  |   |         |  | 
|                                                            | Other comprehensive income (loss), net of tax: |                                                                              |           |                 |          |   |              |         |  |   |        |   |  |         |         |  |  |   |         |  | 
|                                                            |                                                | Minimum pension liability, net of $3,306 tax benefit                         |           |                 | (8,583   | ) |              |         |  |   |        |   |  |         |         |  |  |   |         |  |  | 
|                                                            |                                                | Unrealized translation adjustments, net of $11,912 tax benefit               |           |                 | (147,746 | ) |              |         |  |   |        |   |  |         |         |  |  |   |         |  |  | 
|                                                            |                                                | Net change in fair value of cash flow hedges                                 |           |                 | 8,236    |   |              |         |  |   |        |   |  |         |         |  |  |   |         |  |  | 
|                                                            |                                                | Net hedging gains reclassified into earnings, net of $5,915 tax
    expense  |           |                 | (7,912   | ) |              |         |  |   |        |   |  |         |         |  |  |   |         |  |  | 
|                                                            |                                                |                                                                              |           |                 |          |   |              |         |  |   |        |   |  |         |        
|Comprehensive income                                        |                                                | $                                                                            | 489,598   |                 |          |   |              |         |  |   |        |   |  |         |         |  |  |   |         | 
|                                                            |                                                |                                                                              |           |                 |          |   |              |         |  |   |        |   |  |         |        
|Cash dividends:                                             |                                                |                                                                              |           |                 |          |   |              |         |  |   |        |   |  |         |         |  |  |   |         | 
|                                                            |                                                | Preferred @ $1.70 per share                                                  |           |                 |          |   |              |         |  |   |        |   |  |         |         |  |  |   |         |  |  | 
|                                                            |                                                | Common @ $1.20 per share                                                     |           |                 |          |   |              |         |  |   |        |   |  |         |         |  |  |   |         |  |  | 
|Shares reacquired                                           |                                                |                                                                              |           |                 |          |   |              |         |  |   |        |   |  |         |         |  |  |   |         | 
|Conversion of preferred into common stock                   |                                                |                                                                              |           |                 |          |   | (1           | )       |  |   | (1     | ) |  |         |         |  |  |   |         | 
|Stock options exercised, net of shares tendered for payment |                                                |                                                                              |           |                 |          |   |              |         |  |   |        |   |  |         |         |  |  |   |         | 
|Restricted stock unit activity                              |                                                |                                                                              |           |                 |          |   |              |         |  |   |        |   |  |         |         |  |  |   |         | 
|Other, net*                                                 |                                                |                                                                              |           |                 |          |   |              |         |  |   |        |   |  |         |         |  |  |   |         | 
|                                                            |                                                |                                                                              |           |                 |          |   |              |         |  |   |        |   |  |         |        
|Balance at May 3, 2006                                      |                                                |                                                                              |           |                 |          |   | 8            |         |  | $ | 82     |   |  |         | 431,096 |  |  | $ | 107,774 | 
|                                                            |                                                |                                                                              |           |                 |          |   |              |         |  |   |        |   |  |         |        
|Authorized SharesMay 3, 2006                               |                                                |                                                                              |           |                 |          |   | 8            |         |  |   |        |   |  |         | 600,000 |  |  |   |         | 
|                                                            |                                                |                                                                              |           |                 |          |   |              |         |  |   |        |   |  |         |        



|  |                                                                                                                                                   
|- | --------------------------------------------------------------------------------------------------------------------------------------------------
|* | Includes activity of the Global Stock Purchase Plan, and final
    settlement associated with businesses spun-off to Del Monte in
    Fiscal 2003.



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##### Table of Contents









|           |         |   |          |                |           |        |  |  |          |   |  |               |            |   |               |   |         |        |  |   |          |     |  |   |           |  
|---------- | ------- | - | -------- | -------------- | --------- | ------ |  |  | -------- | - |  | ------------- | ---------- | - | ------------- | - | ------- | ------ |  | - | -------- | --- |  | - | --------- | -
|           |         |   |          | Treasury Stock |           |        |  |  | Other    |   |  | Total         |           
|Additional |         |   | Retained |                |           |        |  |  | Unearned |   |  | Comprehensive |            |   | Shareholders |  
|Capital    |         |   | Earnings |                |           | Shares |  |  | Dollars  |   |  | Compensation  |            |   | Income/(Loss) |   |         | Equity | 
|           |         |   |          |                |           |        |  |  |          |   |  |               |            |   |               |   |         |        | 
|$          | 376,542 |   |          | $              | 4,432,571 |        |  |  | (79,648  | ) |  | $             | (2,879,506 | ) |               | $ | (21,195 | )      |  | $ | (817,135 | )   |  | $ | 1,199,157 |  
|           |         |   |          |                |           |        |  |  |          |   |  |               |            |   |               |   |         |        |  |   |          |     |  |   |           |  
|           |         |   |          |                | 804,273   |        |  |  |          |   |  |               |            |   |               |   |         |        |  |   |          |     |  |   | 804,273   |  
|           |         |   |          |                |           |        |  |  |          |   |  |               |            |   |               |   |         |        |  |   |          |     |  |   |           |  
|           |         |   |          |                |           |        |  |  |          |   |  |               |            |   |               |   |         |        |  |   | 303,609  |     |  |   | 303,609   |  
|           |         |   |          |                |           |        |  |  |          |   |  |               |            |   |               |   |         |        |  |   |          |     |  |   |           |  
|           |         |   |          |                |           |        |  |  |          |   |  |               |            |   |               |   |         |        |  |   |          |     |  |   |           |  
|           |         |   |          |                |           |        |  |  |          |   |  |               |            |   |               |   |         |        |  |   |          |     |  |   |           |  
|           |         |   |          |                |           |        |  |  |          |   |  |               |            |   |               |   |         |        |  |   |          |     |  |   |           |  
|           |         |   |          |                |           |        |  |  |          |   |  |               |            |   |               |   |         |        |  |   |          |     |  |   |           |  
|           |         |   |          |                | (16       | )      |  |  |          |   |  |               |            |   |               |   |         |        |  |   |          |     |  |   | (16       | )
|           |         |   |          |                | (379,910  | )      |  |  |          |   |  |               |            |   |               |   |         |        |  |   |          |     |  |   | (379,910  | )
|           |         |   |          |                |           |        |  |  | (4,810   | ) |  |               | (170,129   | ) |               |   |         |        |  |   |          |     |  |   | (170,129  | )
|           | (421    | ) |          |                |           |        |  |  | 18       |   |  |               | 433        |   |               |   |         |        |  |   |          |     |  |   |          |  
|           | 2,792   |  |          |                |           |        |  |  | 4,774    |   |  |               | 109,389    |   |               |   |         |        |  |   |          |     |  |   | 112,181   |  
|           | 21,256  |   |          |                |           |        |  |  |          |   |  |               |            |   |               |   | (11,080 | )      |  |   |          |     |  |   | 10,176    |  
|           | 2,874   |   |          |                |           |        |  |  | 527      |   |  |               | 11,974     |   |               |   |         |        |  |   |          |     |  |   | 14,848    |  
|           |         |   |          |                |           |        |  |  |          |   |  |               |            |   |               |   |         |        | 
|           | 403,043 |   |          |                | 4,856,918 |        |  |  | (79,139  | ) |  |               | (2,927,839 | ) |               |   | (32,275 | )      |  |   | (513,526 | )   |  |   | 1,894,189 |  
|           |         |   |          |                | 752,699   |        |  |  |          |   |  |               |            |   |               |   |         |        |  |   |          |     |  |   | 752,699   |  
|           |         |   |          |                |           |        |  |  |          |   |  |               |            |   |               |   |         |        |  |   | 539,148  |     |  |   | 539,148   |  
|           |         |   |          |                |           |        |  |  |          |   |  |               |            |   |               |   |         |        |  |   |          |     |  |   |           |  
|           |         |   |          |                |           |        |  |  |          |   |  |               |            |   |               |   |         |        |  |   |          |     |  |   |           |  
|           |         |   |          |                |           |        |  |  |          |   |  |               |            |   |               |   |         |        |  |   |          |     |  |   |           |  
|           |         |   |          |                |           |        |  |  |          |   |  |               |            |   |               |   |         |        |  |   |          |     |  |   |           |  
|           |         |   |          |                |           |        |  |  |          |   |  |               |            |   |               |   |         |        |  |   |          |     |  |   |           |  
|           |         |   |          |                | (15       | )      |  |  |          |   |  |               |            |   |               |   |         |        |  |   |          |     |  |   | (15       | )
|           |         |   |          |                | (398,854  | )      |  |  |          |   |  |               |            |   |               |   |         |        |  |   |          |     |  |   | (398,854  | )
|           |         |   |          |                |           |        |  |  | (7,825   | ) |  |               | (291,348   | ) |               |   |         |        |  |   |          |     |  |   | (291,348  | )
|           | (350    | ) |          |                |           |        |  |  | 16       |   |  |               | 361        |   |               |   |         |        |  |   |          |     |  |   |          |  
|           | 27,030  |  |          |                |           |        |  |  | 2,845    |   |  |               | 62,669     |   |               |   |         |        |  |   |          |     |  |   | 89,699    |  
|           | (7,051  | ) |          |                |           |        |  |  | 251      |   |  |               | 5,724      |   |               |   | 2,123   |        |  |   |          |     |  |   | 796       |  
|           | 7,401   |   |          |                |           |        |  |  | 433      |   |  |               | 9,847      |   |               |   | (989    | )      |  |   |          |     |  |   | 16,259    |  
|           |         |   |          |                |           |        |  |  |          |   |  |               |            |   |               |   |         |        | 
|           | 430,073 |   |          |                | 5,210,748 |        |  |  | (83,419  | ) |  |               | (3,140,586 | ) |               |   | (31,141 | )      |  | $ | 25,622   |     |  |   | 2,602,573 |  
|           |         |   |          |                |           |        |  |  |          |   |  |               |            |   |               |   |         |        |  |   |          |     |  |   |           |  
|           |         |   |          |                | 645,603   |        |  |  |          |   |  |               |            |   |               |   |         |        |  |   |          |     |  |   | 645,603   |  
|           |         |   |          |                |           |        |  |  |          |   |  |               |            |   |               |   |         |        |  |   |          |     |  |   |           |  
|           |         |   |          |                |           |        |  |  |          |   |  |               |            |   |               |   |         |        |  |   | (156,005 | )   |  |   | (156,005  | )
|           |         |   |          |                |           |        |  |  |          |   |  |               |            |   |               |   |         |        |  |   |          |     |  |   |           |  
|           |         |   |          |                |           |        |  |  |          |   |  |               |            |   |               |   |         |        |  |   |          |     |  |   |           |  
|           |         |   |          |                |           |        |  |  |          |   |  |               |            |   |               |   |         |        |  |   |          |     |  |   |           |  
|           |         |   |          |                |           |        |  |  |          |   |  |               |            |   |               |   |         |        |  |   |          |     |  |   |           |  
|           |         |   |          |                |           |        |  |  |          |   |  |               |            |   |               |   |         |        |  |   |          |     |  |   |           |  
|           |         |   |          |                | (14       | )      |  |  |          |   |  |               |            |   |               |   |         |        |  |   |          |     |  |   | (14       | )
|           |         |   |          |                | (408,137  | )      |  |  |          |   |  |               |            |   |               |   |         |        |  |   |          |     |  |   | (408,137  | )
|           |         |   |          |                |           |        |  |  | (21,925  | ) |  |               | (823,370   | ) |               |   |         |        |  |   |          |     |  |   | (823,370  | )
|           | (32     | ) |          |                |           |        |  |  | 1        |   |  |               | 33         |   |               |   |         |        |  |   |          |     |  |   |          |  
|           | 46,861  |  |          |                |           |        |  |  | 4,575    |   |  |               | 101,945    |   |               |   |         |        |  |   |          |     |  |   | 148,806   |  
|           | 21,958  |   |          |                |           |        |  |  | 58       |   |  |               | 1,303      |   |               |   | (2,195  | )      |  |   |          |     |  |   | 21,066    |  
|           | 3,375   |   |          |                | 5,908     |        |  |  | 371      |   |  |               | 8,455      |   |               |   | 563     |        |  |   |          |     |  |   | 18,301    |  
|           |         |   |          |                |           |        |  |  |          |   |  |               |            |   |               |   |         |        | 
|$          | 502,235 |   |          | $              | 5,454,108 |        |  |  | (100,339 | ) |  | $             | (3,852,220 | ) |               | $ | (32,773 | )      |  | $ | (130,383 | ) |  | $ | 2,048,823 |  
|           |         |   |          |                |           |        |  |  |          |   |  |               |            |   |               |   |         |        | 
|           |         |   |          |                |           |        |  |  |          |   |  |               |            |   |               |   |         |        |  |   |          |     |  |   |           |  



|   |                                                                                                                                                                                  
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  | Includes income tax benefit resulting from exercised stock
    options.                                                                                                          
| | Comprised of unrealized translation adjustment of $(45,535),
    minimum pension liability of $(80,224) and deferred net losses
    on derivative financial instruments $(4,624).

43



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H. J. Heinz Company and Subsidiaries





Consolidated Statements of Cash Flows


|                                                                                           |                                                                                   |                                                                                                    |                                           |                                       |            |         |            |            |         |         |            |          |          |         |           |  
|------------------------------------------------------------------------------------------ | --------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------- | ----------------------------------------- | ------------------------------------- | ---------- | ------- | ---------- | ---------- | ------- | ------- | ---------- | -------- | -------- | ------- | --------- | -
|                                                                                           |                                                                                   | Fiscal Year Ended                                                                                  |                                          
|                                                                                           |                                                                                   |                                                                                                    |                                          
|                                                                                           |                                                                                   | May 3,                                                                                             |                                           |                                       | April 27,  |         |            | April 28,  |        
|                                                                                           |                                                                                   | 2006                                                                                               |                                           |                                       | 2005       |         |            | 2004       |        
|                                                                                           |                                                                                   | (53 Weeks)                                                                                         |                                           |                                       | (52 Weeks) |         |            | (52 Weeks) |        
|                                                                                           |                                                                                   |                                                                                                    |                                           |                                       |            |         |            |            |        
|                                                                                           |                                                                                   | (Dollars in thousands)                                                                             |                                          
|Operating activities:                                                                      |                                                                                   |                                                                                                    |                                           |                                       |            |         |            |            |         |         |            |         
|                                                                                           | Net income                                                                        |                                                                                                    | $                                         | 645,603                               |            |         | $          | 752,699    |         |         | $          | 804,273  |         
|                                                                                           | Adjustments to reconcile net income to cash provided by
    operating activities: |                                                                                                    |                                           |                                       |            |         |            |            |         |         |            |          |         
|                                                                                           |                                                                                   | Depreciation                                                                                       |                                           |                                       | 227,454    |         |            |            | 227,187 |         |            |          | 210,158  |        
|                                                                                           |                                                                                   | Amortization                                                                                       |                                           |                                       | 36,384     |         |            |            | 25,265  |         |            |          | 23,785   |        
|                                                                                           |                                                                                   | Deferred tax (benefit)/provision                                                                   |                                           |                                       | (57,693    | )       |            |            | 53,857  |         |            |          | 97,542   |        
|                                                                                           |                                                                                   | Impairment charges and losses on disposals                                                         |                                           |                                       | 188,772    |         |            |            | 100,818 |         |            |          |         |        
|                                                                                           |                                                                                   | Gains on disposals                                                                                 |                                           |                                       | (140,749   | )       |            |            |        |         |            |          | (26,338  | )      
|                                                                                           |                                                                                   | Other items, net                                                                                   |                                           |                                       | 39,066     |         |            |            | 43,989  |         |            |          | (105,559 | )      
|                                                                                           |                                                                                   | Changes in current assets and liabilities, excluding effects of
    acquisitions and divestitures: |                                           |                                       |            |         |            |            |         |         |            |          |          |        
|                                                                                           |                                                                                   |                                                                                                    | Receivables                               |                                       |            | 115,583 |            |            |         | 45,851  |            |          |          | 97,228  |          
|                                                                                           |                                                                                   |                                                                                                    | Inventories                               |                                       |            | (47,401 | )          |            |         | (25,315 | )          |          |          | 77,636  |          
|                                                                                           |                                                                                   |                                                                                                    | Prepaid expenses and other current assets |                                       |            | 13,555  |            |            |         | 2,633   |            |          |          | (5,161  | )        
|                                                                                           |                                                                                   |                                                                                                    | Accounts payable                          |                                       |            | 56,545  |            |            |         | 8,140   |            |          |          | 46,525  |          
|                                                                                           |                                                                                   |                                                                                                    | Accrued liabilities                       |                                       |            | 57,353  |            |            |         | 25,077  |            |          |          | (39,751 | )        
|                                                                                           |                                                                                   |                                                                                                    | Income taxes                              |                                       |            | (59,511 | )          |            |         | (99,408 | )          |          |          | 68,669  |          
|                                                                                           |                                                                                   |                                                                                                    |                                           |                                       |            |         |            |            |        
|                                                                                           |                                                                                   |                                                                                                    |                                           | Cash provided by operating activities |            |         | 1,074,961  |            |         |         | 1,160,793  |          |          |         | 1,249,007 |  
|                                                                                           |                                                                                   |                                                                                                    |                                           |                                       |            |         |            |            |        
|Investing activities:                                                                      |                                                                                   |                                                                                                    |                                           |                                       |            |         |            |            |         |         |            |         
|                                                                                           | Capital expenditures                                                              |                                                                                                    |                                           | (230,577                              | )          |         |            | (240,671   | )       |         |            | (231,961 | )       
|                                                                                           | Proceeds from disposals of property, plant and equipment                          |                                                                                                    |                                           | 19,373                                |            |         |            | 22,252     |         |         |            | 16,979   |         
|                                                                                           | Acquisitions, net of cash acquired                                                |                                                                                                    |                                           | (1,100,436                            | )          |         |            | (126,549   | )       |         |            | (112,847 | )       
|                                                                                           | Proceeds from divestitures                                                        |                                                                                                    |                                           | 856,729                               |            |         |            | 51,150     |         |         |            | 71,177   |         
|                                                                                           | Purchases of short-term investments                                               |                                                                                                    |                                           |                                      |            |         |            | (293,475   | )       |         |            | (83,200  | )       
|                                                                                           | Sales of short-term investments                                                   |                                                                                                    |                                           |                                      |            |         |            | 333,475    |         |         |            | 43,200   |         
|                                                                                           | Other items, net                                                                  |                                                                                                    |                                           | 3,094                                 |            |         |            | (10,236    | )       |         |            | (4,450   | )       
|                                                                                           |                                                                                   |                                                                                                    |                                           |                                       |            |         |            |            |        
|                                                                                           |                                                                                   |                                                                                                    |                                           | Cash used for investing activities    |            |         | (451,817   | )          |         |         | (264,054   | )        |          |         | (301,102  | )
|                                                                                           |                                                                                   |                                                                                                    |                                           |                                       |            |         |            |            |        
|Financing activities:                                                                      |                                                                                   |                                                                                                    |                                           |                                       |            |         |            |            |         |         |            |         
|                                                                                           | Payments on long-term debt                                                        |                                                                                                    |                                           | (727,772                              | )          |         |            | (480,471   | )       |         |            | (74,317  | )       
|                                                                                           | Proceeds from long-term debt                                                      |                                                                                                    |                                           | 230,790                               |            |         |            |           |         |         |            |         |         
|                                                                                           | Proceeds from/(payments on) commercial paper and short-term
    debt, net         |                                                                                                    |                                           | 298,525                               |            |         |            | 26,468     |         |         |            | (144,721 | )       
|                                                                                           | Dividends                                                                         |                                                                                                    |                                           | (408,151                              | )          |         |            | (398,869   | )       |         |            | (379,926 | )       
|                                                                                           | Purchase of treasury stock                                                        |                                                                                                    |                                           | (823,370                              | )          |         |            | (291,348   | )       |         |            | (170,129 | )       
|                                                                                           | Exercise of stock options                                                         |                                                                                                    |                                           | 142,046                               |            |         |            | 79,383     |         |         |            | 112,705  |         
|                                                                                           | Other items, net                                                                  |                                                                                                    |                                           | 18,507                                |            |         |            | 13,952     |         |         |            | 12,466   |         
|                                                                                           |                                                                                   |                                                                                                    |                                           |                                       |            |         |            |            |        
|                                                                                           |                                                                                   |                                                                                                    |                                           | Cash used for financing activities    |            |         | (1,269,425 | )          |         |         | (1,050,885 | )        |          |         | (643,922  | )
|                                                                                           |                                                                                   |                                                                                                    |                                           |                                       |            |         |            |            |        
|Cash provided by operating activities of discontinued operations
    spun-off to Del Monte |                                                                                   |                                                                                                    | 13,312                                    |                                       |            |         | 28,196     |            |         |         |           |         
|Effect of exchange rate changes on cash and cash equivalents                               |                                                                                   |                                                                                                    | (5,353                                    | )                                     |            |         | 69,660     |            |         |         | 34,324     |         
|                                                                                           |                                                                                   |                                                                                                    |                                           |                                       |            |         |            |            |        
|Net (decrease)/increase in cash and cash equivalents                                       |                                                                                   |                                                                                                    | (638,322                                  | )                                     |            |         | (56,290    | )          |         |         | 338,307    |         
|Cash and cash equivalents at beginning of year                                             |                                                                                   |                                                                                                    | 1,083,749                                 |                                       |            |         | 1,140,039  |            |         |         | 801,732    |         
|                                                                                           |                                                                                   |                                                                                                    |                                           |                                       |            |         |            |            |        
|Cash and cash equivalents at end of year                                                   |                                                                                   | $                                                                                                  | 445,427                                   |                                       |            | $       | 1,083,749  |            |         | $       | 1,140,039  |         
|                                                                                           |                                                                                   |                                                                                                    |                                           |                                       |            |         |            |            |        



44



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H. J. Heinz Company and Subsidiaries





Notes to Consolidated Financial Statements




|   |                                
|-- | -------------------------------
|1. | Significant Accounting Policies



| |             
| | ------------
| | Fiscal Year:

52-week 53-week




| |                             
| | ----------------------------
| | Principles of Consolidation:







| |                  
| | -----------------
| | Use of Estimates:





| |                                   
| | ----------------------------------
| | Translation of Foreign Currencies:



45



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H. J. Heinz Company and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)




| |                  
| | -----------------
| | Cash Equivalents:





| |             
| | ------------
| | Inventories:





| |                               
| | ------------------------------
| | Property, Plant and Equipment:





| |             
| | ------------
| | Intangibles:





| |                     
| | --------------------
| | Revenue Recognition:





| |                 
| | ----------------
| | Marketing Costs:



46



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H. J. Heinz Company and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)






| |              
| | -------------
| | Income Taxes:







| |                                         
| | ----------------------------------------
| | Stock-Based Employee Compensation Plans:





|                                                    |                                      |                           |   |         |            |  |   |            |      |  |   |         |      | 
|--------------------------------------------------- | ------------------------------------ | ------------------------- | - | ------- | ---------- |  | - | ---------- | ---- |  | - | ------- | ---- | 
|                                                    |                                      | Fiscal Year Ended         |  
|                                                    |                                      |                           |  
|                                                    |                                      | May 3,                    |   |         | April 27,  |  |   | April 28,  |     
|                                                    |                                      | 2006                      |   |         | 2005       |  |   | 2004       |     
|                                                    |                                      | (53 Weeks)                |   |         | (52 Weeks) |  |   | (52 Weeks) |     
|                                                    |                                      |                           |   |         |            |  |   |            |     
|                                                    |                                      | (Dollars in thousands,    |  
|                                                    |                                      | except per share amounts) |  
|Income from continuing operations:                  |                                      |                           |   |         |            |  |   |            |      |  |   |        
|                                                    | As reported                          |                           | $ | 442,761 |            |  | $ | 688,004    |      |  | $ | 715,451 |     
|                                                    | Fair value-based expense, net of tax |                           |   | 12,333  |            |  |   | 17,846     |      |  |   | 25,007  |     
|                                                    |                                      |                           |   |         |            |  |   |            |     
|                                                    | Pro forma                            |                           | $ | 430,428 |            |  | $ | 670,158    |      |  | $ | 690,444 |     
|                                                    |                                      |                           |   |         |            |  |   |            |     
|Income per common share from continuing operations: |                                      |                           |   |         |            |  |   |            |      |  |   |        
|                                                    | Diluted                              |                           |   |         |            |  |   |            |      |  |   |         |     
|                                                    |                                      | As reported               |   | $       | 1.29       |  |   | $          | 1.95 |  |   | $       | 2.02 | 
|                                                    |                                      | Pro forma                 |   | $       | 1.26       |  |   | $          | 1.90 |  |   | $       | 1.95 | 
|                                                    | Basic                                |                           |   |         |            |  |   |            |      |  |   |         |     
|                                                    |                                      | As reported               |   | $       | 1.31       |  |   | $          | 1.97 |  |   | $       | 2.03 | 
|                                                    |                                      | Pro forma                 |   | $       | 1.27       |  |   | $          | 1.91 |  |   | $       | 1.96 | 



47



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H. J. Heinz Company and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)




|                        |  |      |      |   |      |  |      |      |  |  |      |  
|----------------------- |  | ---- | ---- | - | ---- |  | ---- | ---- |  |  | ---- | -
|                        |  | 2006 |      |   | 2005 |  |      | 2004 | 
|                        |  |      |      |   |      |  |      |      | 
|Dividend yield          |  |      | 3.2  | % |      |  | 3.0  | %    |  |  | 3.3  | %
|Volatility              |  |      | 22.0 | % |      |  | 25.4 | %    |  |  | 20.1 | %
|Risk-free interest rate |  |      | 4.0  | % |      |  | 4.4  | %    |  |  | 3.7  | %
|Expected term (years)   |  |      | 5.0  |   |      |  | 7.9  |      |  |  | 6.5  |  





| |                       
| | ----------------------
| | Financial Instruments:







|   |                                     
|-- | ------------------------------------
|2. | Recently Issued Accounting Standards



48



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H. J. Heinz Company and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)






|   |                        
|-- | -----------------------
|3. | Discontinued Operations



John
West ® Petit
Navire ® Marie
Elisabeth ® Mareblu ® Tegel ®








|   |                     
|-- | --------------------
|4. | Transformation Costs





| |                     
| | --------------------
| | Reorganization Costs







49



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H. J. Heinz Company and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)






| |                                       
| | --------------------------------------
| | Other Divestitures/ Impairment Charges



|                                                           |  |         |                   |               |         |   |        |           |  |   |        |  
|---------------------------------------------------------- |  | ------- | ----------------- | ------------- | ------- | - | ------ | --------- |  | - | ------ | -
|Business or Product Line                                   |  | Segment |                   |               | Pre-Tax |   |        | After-Tax | 
|                                                           |  |         |                   |               |         |   |        |           | 
|                                                           |  |         |                   | (In millions) |        
|Loss on sale of Seafood business in Israel                 |  |         | Other Operating   |               |         | $ | (15.9  | )         |  | $ | (15.9  | )
|Impairment charge on Portion Pac Bulk product line         |  |         | U.S.  Foodservice |               |         |   | (21.5  | )         |  |   | (13.3  | )
|Impairment charge on U.K. Frozen and Chilled product lines |  |         | Europe            |               |         |   | (15.2  | )         |  |   | (15.2  | )
|Impairment charge on European production assets            |  |         | Europe            |               |         |   | (18.7  | )         |  |   | (18.7  | )
|Impairment charge on Noodle product line in Indonesia      |  |         | Asia/Pacific      |               |         |   | (15.8  | )         |  |   | (8.5   | )
|Impairment charge on investment in Zimbabwe business       |  |         | Other Operating   |               |         |   | (111.0 | )         |  |   | (105.6 | )
|Other                                                      |  |         | Various           |               |         |   | (1.5   | )         |  |   | 0.5    |  
|                                                           |  |         |                   |               |         |   |        |           | 
|Total                                                      |  |         |                   |               |         | $ | (199.6 | )         |  | $ | (176.7 | )
|                                                           |  |         |                   |               |         |   |        |           | 



e-commerce


®




50



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##### Table of Contents



H. J. Heinz Company and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


Other
Non-recurring  American Jobs Creation Act




|                          |                                      |                       |         |  |       | 
|------------------------- | ------------------------------------ | --------------------- | ------- |  | ----- | 
|                          |                                      | In millions           |        
|                          |                                      |                       |        
|Non-taxable repatriations |                                      | $                     | 472.7   | 
|Taxable repatriations:    |                                      |                       |         | 
|                          | Planned at beginning of Fiscal 2006: |                       |         |  |      
|                          |                                      | Eligible for AJCA     |         |  | 162.5 | 
|                          |                                      | Not eligible for AJCA |         |  | 12.1  | 
|                          | Incremental dividends:               |                       |         |  |      
|                          |                                      | Eligible for AJCA     |         |  | 425.4 | 
|                          |                                      | Not eligible for AJCA |         |  | 253.5 | 
|                          |                                      |                       |        
|Total cash repatriations  |                                      | $                     | 1,326.2 | 
|                          |                                      |                       |        





|   |             
|-- | ------------
|5. | Acquisitions





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | In August 2005, the Company acquired HP Foods Limited, HP Foods
    Holdings Limited, and HP Foods International Limited
    (collectively referred to as HPF) for a purchase
    price of approximately $877 million. HPF is a manufacturer
    and marketer of sauces which are primarily sold in the United
    Kingdom, the United States, and Canada. The Company acquired
    HPFs brands including
    HP®
    and Lea &
    Perrin®
    and a perpetual license to market
    Amoy®
    brand Asian sauces and products in Europe. During the fourth
    quarter of Fiscal 2006, the Company divested the Ethnic Foods
    division of HPF for net proceeds totaling approximately
    $43 million. In March 2006, the British Competition
    Commission formally cleared this acquisition, concluding that
    the acquisition may not be expected to result in a substantial
    lessening of competition within the markets for tomato ketchup,
    brown sauce, barbeque sauce, canned baked beans and canned pasta
    in the United Kingdom.

51



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H. J. Heinz Company and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)




| |   |                                                                                                                                                                                                                                                                                        
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | On April 28, 2005, the Company acquired a controlling
    interest in Petrosoyuz, a leading Russian maker of ketchup,
    condiments and sauces. Petrosoyuzs business includes
    brands such as
    Pikador®,
    Derevenskoye®,
    Mechta
    Hoziaiyki®
    and Moya
    Semya®.
|
| |  | In July 2005, the Company acquired Nancys Specialty Foods,
    Inc., which produces premium appetizers, quiche entrees and
    desserts in the United States and Canada.                                                                                                              
|
| |  | In March 2006, the Company acquired Kabobs, Inc., which produces
    premium hors doeuvres in the United States.                                                                                                                                                                      









52



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H. J. Heinz Company and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)




|   |                                     
|-- | ------------------------------------
|6. | Goodwill and Other Intangible Assets



|                                |  |                        |           |  |             |   |         |        |  |       |           |   |           |          |         |   |       |   |        |   |  |   |           |  
|------------------------------- |  | ---------------------- | --------- |  | ----------- | - | ------- | ------ |  | ----- | --------- | - | --------- | -------- | ------- | - | ----- | - | ------ | - |  | - | --------- | -
|                                |  | North                  |           |  |             |   |         |        |  |       |           |   |          
|                                |  | American               |           |  |             |   |         |        |  |       | Other     |   |           |         
|                                |  | Consumer               |           |  | U.S.        |   |         |        |  | Asia/ |           |   | Operating |          |         |  
|                                |  | Products               |           |  | Foodservice |   |         | Europe |  |       | Pacific   |   |           | Entities |         |   | Total |  
|                                |  |                        |           |  |             |   |         |        |  |       |           |   |           |          |         |   |       |  
|                                |  | (Thousands of dollars) |          
|Balance at April 27, 2005       |  | $                      | 917,706   |  |             | $ | 230,367 |        |  | $     | 763,758   |   |           | $        | 207,925 |   |       | $ | 18,743 |   |  | $ | 2,138,499 |  
|Acquisitions                    |  |                        | 140,811   |  |             |   | 44,809  |        |  |       | 567,099   |   |           |          | 7,400   |   |       |   |       |   |  |   | 760,119   |  
|Purchase accounting adjustments |  |                        |          |  |             |   | 2,863   |        |  |       | 824       |   |           |          | 2,234   |   |       |   | 702    |   |  |   | 6,623     |  
|Disposition related             |  |                        |          |  |             |   |        |        |  |       | (55,618   | ) |           |          | (7,309  | ) |       |   | (2,974 | ) |  |   | (65,901   | )
|Translation adjustments         |  |                        | 9,210     |  |             |   |        |        |  |       | (10,594   | ) |           |          | (15,044 | ) |       |   | (345   | ) |  |   | (16,773   | )
|                                |  |                        |           |  |             |   |         |        |  |       |           |   |           |          |         |   |       |  
|Balance at May 3, 2006          |  | $                      | 1,067,727 |  |             | $ | 278,039 |        |  | $     | 1,265,469 |   |           | $        | 195,206 |   |       | $ | 16,126 |   |  | $ | 2,822,567 |  
|                                |  |                        |           |  |             |   |         |        |  |       |           |   |           |          |         |   |       |  







|           |  |             |         |  |                |                        |          |     |  |   |         |  |  |             |         |  |     |   |          |   |  |   |         | 
|---------- |  | ----------- | ------- |  | -------------- | ---------------------- | -------- | --- |  | - | ------- |  |  | ----------- | ------- |  | --- | - | -------- | - |  | - | ------- | 
|           |  | May 3, 2006 |         |  | April 27, 2005 |                       
|           |  |             |         |  |                |                       
|           |  | Gross       |         |  | Accum Amort    |                        |          | Net |  |   | Gross   |  |  | Accum Amort |         |  | Net |  
|           |  |             |         |  |                |                        |          |     |  |   |         |  |  |             |         |  |     |  
|           |  |             |         |  |                | (Thousands of dollars) |          |     |  |   |        
|Trademarks |  | $           | 197,957 |  |                | $                      | (61,279  | )   |  | $ | 136,678 |  |  | $           | 221,019 |  |     | $ | (61,616  | ) |  | $ | 159,403 | 
|Licenses   |  |             | 208,186 |  |                |                        | (129,630 | )   |  |   | 78,556  |  |  |             | 208,186 |  |     |   | (123,911 | ) |  |   | 84,275  | 
|Other      |  |             | 271,798 |  |                |                        | (80,790  | )   |  |   | 191,008 |  |  |             | 155,481 |  |     |   | (68,081  | ) |  |   | 87,400  | 
|           |  |             |         |  |                |                        |          |     |  |   |         |  |  |             |         |  |     |  
|           |  | $           | 677,941 |  |                | $                      | (271,699 | )   |  | $ | 406,242 |  |  | $           | 584,686 |  |     | $ | (253,608 | ) |  | $ | 331,078 | 
|           |  |             |         |  |                |                        |          |     |  |   |         |  |  |             |         |  |     |  





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H. J. Heinz Company and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)




|   |             
|-- | ------------
|7. | Income Taxes



|          |                            |                        |         |         |      |  |         |         |  |  |         |         | 
|--------- | -------------------------- | ---------------------- | ------- | ------- | ---- |  | ------- | ------- |  |  | ------- | ------- | 
|          |                            | 2006                   |         |         | 2005 |  |         | 2004    | 
|          |                            |                        |         |         |      |  |         |         | 
|          |                            | (Dollars in thousands) |        
|Current:  |                            |                        |         |         |      |  |         |         |  |  |         |        
|          | U.S. federal               |                        | $       | 71,533  |      |  | $       | 68,905  |  |  | $       | 67,406  | 
|          | State                      |                        |         | 14,944  |      |  |         | 9,128   |  |  |         | 7,119   | 
|          | Foreign                    |                        |         | 225,498 |      |  |         | 169,629 |  |  |         | 180,815 | 
|          |                            |                        |         |         |      |  |         |         | 
|          |                            |                        | 311,975 |         |      |  | 247,662 |         |  |  | 255,340 |        
|          |                            |                        |         |         |      |  |         |         | 
|Deferred: |                            |                        |         |         |      |  |         |         |  |  |         |        
|          | U.S. federal               |                        |         | (54,957 | )    |  |         | 45,020  |  |  |         | 59,394  | 
|          | State                      |                        |         | 3,015   |      |  |         | 3,144   |  |  |         | 3,606   | 
|          | Foreign                    |                        |         | (9,333  | )    |  |         | 3,685   |  |  |         | 33,777  | 
|          |                            |                        |         |         |      |  |         |         | 
|          |                            |                        | (61,275 | )       |      |  | 51,849  |         |  |  | 96,777  |        
|          |                            |                        |         |         |      |  |         |         | 
|          | Provision for income taxes |                        | $       | 250,700 |      |  | $       | 299,511 |  |  | $       | 352,117 | 
|          |                            |                        |         |         |      |  |         |         | 





|                           |  |                        |         |  |      |   |         |      |  |   |           | 
|-------------------------- |  | ---------------------- | ------- |  | ---- | - | ------- | ---- |  | - | --------- | 
|                           |  | 2006                   |         |  | 2005 |   |         | 2004 | 
|                           |  |                        |         |  |      |   |         |      | 
|                           |  | (Dollars in thousands) |        
|Domestic                   |  | $                      | 87,409  |  |      | $ | 385,926 |      |  | $ | 332,010   | 
|Foreign                    |  |                        | 606,052 |  |      |   | 601,589 |      |  |   | 735,558   | 
|                           |  |                        |         |  |      |   |         |      | 
|From continuing operations |  | $                      | 693,461 |  |      | $ | 987,515 |      |  | $ | 1,067,568 | 
|                           |  |                        |         |  |      |   |         |      | 



|                                            |  |      |      |   |      |  |      |      |  |  |      |  
|------------------------------------------- |  | ---- | ---- | - | ---- |  | ---- | ---- |  |  | ---- | -
|                                            |  | 2006 |      |   | 2005 |  |      | 2004 | 
|                                            |  |      |      |   |      |  |      |      | 
|U.S. federal statutory tax rate             |  |      | 35.0 | % |      |  | 35.0 | %    |  |  | 35.0 | %
|Tax on income of foreign subsidiaries       |  |      | (5.9 | ) |      |  | (7.9 | )    |  |  | (3.7 | )
|State income taxes (net of federal benefit) |  |      | 1.8  |   |      |  | 0.9  |      |  |  | 0.8  |  
|Earnings repatriation                       |  |      | 4.3  |   |      |  | (0.5 | )    |  |  | 1.6  |  
|Losses (recognized)/not recognized for tax  |  |      | 2.7  |   |      |  | 3.7  |      |  |  | (1.0 | )
|Other                                       |  |      | (1.7 | ) |      |  | (0.9 | )    |  |  | 0.3  |  
|                                            |  |      |      |   |      |  |      |      | 
|Effective tax rate                          |  |      | 36.2 | % |      |  | 30.3 | %    |  |  | 33.0 | %
|                                            |  |      |      |   |      |  |      |      | 



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H. J. Heinz Company and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


e-commerce




|                             |  |                        |          |   |      |   |          |  
|---------------------------- |  | ---------------------- | -------- | - | ---- | - | -------- | -
|                             |  | 2006                   |          |   | 2005 |  
|                             |  |                        |          |   |      |  
|                             |  | (Dollars in thousands) |         
|Depreciation/amortization    |  | $                      | 582,543  |   |      | $ | 470,758  |  
|Benefit plans                |  |                        | 155,052  |   |      |   | 141,888  |  
|Other                        |  |                        | 47,314   |   |      |   | 106,409  |  
|                             |  |                        |          |   |      |  
|Deferred tax liabilities     |  |                        | 784,909  |   |      |   | 719,055  |  
|                             |  |                        |          |   |      |  
|Operating loss carryforwards |  |                        | (70,192  | ) |      |   | (56,044  | )
|Benefit plans                |  |                        | (140,810 | ) |      |   | (105,467 | )
|Investments                  |  |                        | (18,904  | ) |      |   | (27,434  | )
|Tax credit carryforwards     |  |                        | (54,897  | ) |      |   | (36,243  | )
|Other                        |  |                        | (74,388  | ) |      |   | (90,834  | )
|                             |  |                        |          |   |      |  
|Deferred tax assets          |  |                        | (359,191 | ) |      |   | (316,022 | )
|                             |  |                        |          |   |      |  
|Valuation allowance          |  |                        | 30,950   |   |      |   | 70,248   |  
|                             |  |                        |          |   |      |  
|Net deferred tax liabilities |  | $                      | 456,668  |   |      | $ | 473,281  |  
|                             |  |                        |          |   |      |  









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H. J. Heinz Company and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)








step-up step-up,




|   |     
|-- | ----
|8. | Debt





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H. J. Heinz Company and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)




|                                                                                                             |  |                        |           |   |      |   |           |  
|------------------------------------------------------------------------------------------------------------ |  | ---------------------- | --------- | - | ---- | - | --------- | -
|                                                                                                             |  | 2006                   |           |   | 2005 |  
|                                                                                                             |  |                        |           |   |      |  
|                                                                                                             |  | (Dollars in thousands) |          
|Commercial Paper (variable rate)                                                                             |  | $                      | 408,070   |   |      | $ |          |  
|5.125% Euro Notes due April 2006                                                                             |  |                        |          |   |      |   | 540,208   |  
|6.00% U.S. Dollar Notes due March 2008                                                                       |  |                        | 299,619   |   |      |   | 299,420   |  
|6.226% Heinz Finance Preferred Stock due July 2008                                                           |  |                        | 325,000   |   |      |   | 325,000   |  
|6.625% U.S. Dollar Notes due July 2011                                                                       |  |                        | 749,457   |   |      |   | 749,353   |  
|6.00% U.S. Dollar Notes due March 2012                                                                       |  |                        | 631,732   |   |      |   | 696,462   |  
|U.S. Dollar Remarketable Securities due November 2020                                                        |  |                        | 800,000   |   |      |   | 800,000   |  
|6.375% U.S. Dollar Debentures due July 2028                                                                  |  |                        | 232,656   |   |      |   | 243,625   |  
|6.25% British Pound Notes due February 2030                                                                  |  |                        | 228,848   |   |      |   | 236,230   |  
|6.75% U.S. Dollar Notes due March 2032                                                                       |  |                        | 472,923   |   |      |   | 547,502   |  
|Canadian Dollar Credit Agreement due October 2010                                                            |  |                        | 180,636   |   |      |   |          |  
|Other U.S. Dollar due October 2016November 2034
    (3.008.07%)                                            |  |                        | 9,713     |   |      |   | 9,963     |  
|Other Non-U.S. Dollar due December 2012March 2022
    (weighted average rate of 11.00%)                     |  |                        | 20,705    |   |      |   | 32,933    |  
|                                                                                                             |  |                        |           |   |      |  
|                                                                                                             |  |                        | 4,359,359 |   |      |   | 4,480,696 |  
|SFAS 133 Hedge Accounting Adjustments (See Note 14)                                                          |  |                        | (1,429    | ) |      |   | 186,086   |  
|Less portion due within one year                                                                             |  |                        | (917      | ) |      |   | (544,798  | )
|                                                                                                             |  |                        |           |   |      |  
|Total long-term debt                                                                                         |  | $                      | 4,357,013 |   |      | $ | 4,121,984 |  
|                                                                                                             |  |                        |           |   |      |  
|Weighted-average interest rate on long-term debt, including the
    impact of applicable interest rate swaps |  |                        | 5.25      | % |      |   | 4.06      | %
|                                                                                                             |  |                        |           |   |      |  

 








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H. J. Heinz Company and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)




|   |                     
|-- | --------------------
|9. | Shareholders Equity



| |               
| | --------------
| | Capital Stock:







| |                                        
| | ---------------------------------------
| | Employee Stock Ownership Plan (ESOP):





| |                                     
| | ------------------------------------
| | Global Stock Purchase Plan (GSPP):





| |                    
| | -------------------
| | Pension Obligation:





|    |                                    
|--- | -----------------------------------
|10. | Supplemental Cash Flows Information

|                               |  |                        |           |  |      |   |         |      |  |   |         | 
|------------------------------ |  | ---------------------- | --------- |  | ---- | - | ------- | ---- |  | - | ------- | 
|                               |  | 2006                   |           |  | 2005 |   |         | 2004 | 
|                               |  |                        |           |  |      |   |         |      | 
|                               |  | (Dollars in thousands) |          
|Cash Paid During the Year For: |  |                        |           |  |      |   |         |      |  |   |         | 
|Interest                       |  | $                      | 292,285   |  |      | $ | 226,928 |      |  | $ | 169,671 | 
|                               |  |                        |           |  |      |   |         |      | 
|Income taxes                   |  | $                      | 326,370   |  |      | $ | 381,443 |      |  | $ | 221,043 | 
|                               |  |                        |           |  |      |   |         |      | 
|Details of Acquisitions:       |  |                        |           |  |      |   |         |      |  |   |         | 
|Fair value of assets           |  | $                      | 1,296,379 |  |      | $ | 187,108 |      |  | $ | 126,082 | 
|Liabilities*                   |  |                        | 192,486   |  |      |   | 48,179  |      |  |   | 13,235  | 
|                               |  |                        |           |  |      |   |         |      | 
|Cash paid                      |  |                        | 1,103,893 |  |      |   | 138,929 |      |  |   | 112,847 | 
|Less cash acquired             |  |                        | 3,457     |  |      |   | 12,380  |      |  |   |        | 
|                               |  |                        |           |  |      |   |         |      | 
|Net cash paid for acquisitions |  | $                      | 1,100,436 |  |      | $ | 126,549 |      |  | $ | 112,847 | 
|                               |  |                        |           |  |      |   |         |      | 






|  |                                                                                                                             
|- | ----------------------------------------------------------------------------------------------------------------------------
|* | Includes obligations to sellers of $5.7 million,
    $5.5 million and $4.6 million in 2006, 2005 and 2004,
    respectively.

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H. J. Heinz Company and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)




|    |                                                                    
|--- | -------------------------------------------------------------------
|11. | Employees Stock Incentive Plans and Management
    Incentive Plans



| |               
| | --------------
| | Stock Options:





|                                   |                |        |            |                  |                |   |       |       | 
|---------------------------------- | -------------- | ------ | ---------- | ---------------- | -------------- | - | ----- | ----- | 
|                                   |                |        |            | Weighted-Average |               
|                                   |                | Shares |            |                  | Exercise Price |  
|                                   |                |        |            |                  |                |  
|Shares under option April 30, 2003 |                |        | 37,901,027 |                  |                | $ | 36.02 |      
|Options granted                    |                |        | 4,770,584  |                  |                |   | 34.08 |      
|Options exercised                  |                |        | (4,774,004 | )                |                |   | 23.30 |      
|Options surrendered                |                |        | (412,843   | )                |                |   | 35.57 |      
|                                   |                |        |            |                  |                |  
|Shares under option April 28, 2004 |                |        | 37,484,764 |                  |                | $ | 37.49 |      
|Options granted                    |                |        | 1,587,038  |                  |                |   | 37.04 |      
|Options exercised                  |                |        | (2,845,408 | )                |                |   | 27.77 |      
|Options surrendered                |                |        | (762,477   | )                |                |   | 36.54 |      
|                                   |                |        |            |                  |                |  
|Shares under option April 27, 2005 |                |        | 35,463,917 |                  |                | $ | 38.27 |      
|Options granted                    |                |        | 1,165,264  |                  |                |   | 37.01 |      
|Options exercised                  |                |        | (4,575,215 | )                |                |   | 30.66 |      
|Options surrendered                |                |        | (538,802   | )                |                |   | 38.06 |      
|                                   |                |        |            |                  |                |  
|Shares under option May 3, 2006    |                |        | 31,515,164 |                  |                | $ | 39.33 |      
|                                   |                |        |            |                  |                |  
|Options exercisable at:            |                |        |            |                  |                |   |       |      
|                                   | April 28, 2004 |        |            | 21,294,299       |                |   | $     | 37.29 | 
|                                   | April 27, 2005 |        |            | 24,161,285       |                |   | $     | 38.56 | 
|                                   | May 3, 2006    |        |            | 25,544,531       |                |   | $     | 39.29 | 



|                            |  |                     |            |           |                     |  |           |                |  |   |             |           |  |                |            |  |  |   |       | 
|--------------------------- |  | ------------------- | ---------- | --------- | ------------------- |  | --------- | -------------- |  | - | ----------- | --------- |  | -------------- | ---------- |  |  | - | ----- | 
|                            |  | Options Outstanding |            |           | Options Exercisable | 
|                            |  |                     |            |           |                     | 
|                            |  |                     |            | Weighted- |                     |  | Weighted- |                |  |  
|                            |  |                     |            | Average   |                     |  | Average   |                |  |  
|                            |  |                     |            | Remaining |                     |  | Remaining |                |  |   |             | Weighted- | 
|Range of Exercise Price Per |  | Number              |            |           | Life                |  |           | Exercise Price |  |   | Number      |           |  | Average        |           
|Share                       |  | Outstanding         |            |           | (Years)             |  |           | Per Share      |  |   | Exercisable |           |  | Exercise Price |           
|                            |  |                     |            |           |                     |  |           |                |  |   |             |           |  |                |           
|$27.93-$35.61               |  |                     | 13,086,036 |           |                     |  | 5.29      |                |  | $ | 33.23       |           |  |                | 10,923,906 |  |  | $ | 33.08 | 
|$35.62-$39.98               |  |                     | 8,089,084  |           |                     |  | 5.60      |                |  |   | 38.26       |           |  |                | 5,869,244  |  |  |   | 38.70 | 
|$39.99-$54.00               |  |                     | 10,340,044 |           |                     |  | 2.32      |                |  |   | 47.88       |           |  |                | 8,751,381  |  |  |   | 47.44 | 
|                            |  |                     |            |           |                     |  |           |                |  |   |             |           |  |                |           
|                            |  |                     | 31,515,164 |           |                     |  | 4.40      |                |  | $ | 39.33       |           |  |                | 25,544,531 |  |  | $ | 39.29 | 
|                            |  |                     |            |           |                     |  |           |                |  |   |             |           |  |                |           

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H. J. Heinz Company and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)






| |                        
| | -----------------------
| | Annual Incentive Bonus:





| |                                   
| | ----------------------------------
| | Other Long-Term Incentive Programs



| |                        
| | -----------------------
| | Restricted Stock Units:



|                            |  |       |           |  
|--------------------------- |  | ----- | --------- | -
|                            |  | Units |          
|                            |  |       |          
|Unit balance April 30, 2003 |  |       | 782,431   |  
|Units granted               |  |       | 928,066   |  
|Units fully vested          |  |       | (172,462  | )
|Units surrendered           |  |       | (14,345   | )
|                            |  |       |          
|Unit balance April 28, 2004 |  |       | 1,523,690 |  
|Units granted               |  |       | 391,968   |  
|Units fully vested          |  |       | (392,303  | )
|Units surrendered           |  |       | (35,571   | )
|                            |  |       |          
|Unit balance April 27, 2005 |  |       | 1,487,784 |  
|Units granted               |  |       | 708,180   |  
|Units fully vested          |  |       | (68,380   | )
|Units surrendered           |  |       | (58,219   | )
|                            |  |       |          
|Unit balance May 3, 2006    |  |       | 2,069,365 |  
|                            |  |       |          





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H. J. Heinz Company and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)






| |                                 
| | --------------------------------
| | Performance Unit Awards Program:





|    |                 
|--- | ----------------
|12. | Retirement Plans



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H. J. Heinz Company and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)




|                                                                 |                                                        |                                                  |         |           |           |  |          |           |           | 
|---------------------------------------------------------------- | ------------------------------------------------------ | ------------------------------------------------ | ------- | --------- | --------- |  | -------- | --------- | --------- | 
|                                                                 |                                                        | 2006                                             |         |           | 2005      | 
|                                                                 |                                                        |                                                  |         |           |           | 
|                                                                 |                                                        | (Dollars in thousands)                           |        
|Change in Benefit Obligation:                                    |                                                        |                                                  |         |           |           |  |          |          
|                                                                 | Benefit obligation at the beginning of the year        |                                                  | $       | 2,342,701 |           |  | $        | 2,106,788 |          
|                                                                 | Service cost                                           |                                                  |         | 42,081    |           |  |          | 46,102    |          
|                                                                 | Interest cost                                          |                                                  |         | 124,064   |           |  |          | 122,981   |          
|                                                                 | Participants contributions                            |                                                  |         | 11,078    |           |  |          | 11,082    |          
|                                                                 | Amendments                                             |                                                  |         | (10,434   | )         |  |          | (34,173   | )        
|                                                                 | Actuarial loss                                         |                                                  |         | 139,007   |           |  |          | 74,464    |          
|                                                                 | Acquisitions                                           |                                                  |         | 110,949   |           |  |          |          |          
|                                                                 | Divestitures                                           |                                                  |         | (33,932   | )         |  |          |          |          
|                                                                 | Curtailment                                            |                                                  |         | (22,863   | )         |  |          |          |          
|                                                                 | Settlement                                             |                                                  |         | (16,628   | )         |  |          | (7,151    | )        
|                                                                 | Special termination benefits                           |                                                  |         | 22,025    |           |  |          |          |          
|                                                                 | Benefits paid                                          |                                                  |         | (115,464  | )         |  |          | (108,185  | )        
|                                                                 | Exchange/other                                         |                                                  |         | 8,645     |           |  |          | 130,793   |          
|                                                                 |                                                        |                                                  |         |           |           | 
|                                                                 |                                                        | Benefit obligation at the end of the year        |         |           | 2,601,229 |  |          |           | 2,342,701 | 
|                                                                 |                                                        |                                                  |         |           |           | 
|Change in Plan Assets:                                           |                                                        |                                                  |         |           |           |  |          |          
|                                                                 | Fair value of plan assets at the beginning of the year |                                                  | $       | 2,213,143 |           |  | $        | 1,984,407 |          
|                                                                 | Actual return on plan assets                           |                                                  |         | 427,859   |           |  |          | 173,108   |          
|                                                                 | Acquisitions                                           |                                                  |         | 65,187    |           |  |          |          |          
|                                                                 | Divestitures                                           |                                                  |         | (33,732   | )         |  |          |          |          
|                                                                 | Settlement                                             |                                                  |         | (16,628   | )         |  |          | (7,151    | )        
|                                                                 | Employer contribution                                  |                                                  |         | 64,649    |           |  |          | 39,878    |          
|                                                                 | Participants contributions                            |                                                  |         | 11,078    |           |  |          | 11,082    |          
|                                                                 | Benefits paid                                          |                                                  |         | (115,464  | )         |  |          | (108,185  | )        
|                                                                 | Exchange                                               |                                                  |         | 5,128     |           |  |          | 120,004   |          
|                                                                 |                                                        |                                                  |         |           |           | 
|                                                                 |                                                        | Fair value of plan assets at the end of the year |         |           | 2,621,220 |  |          |           | 2,213,143 | 
|                                                                 |                                                        |                                                  |         |           |           | 
|Funded status                                                    |                                                        |                                                  | 19,991  |           |           |  | (129,558 | )        
|Unamortized prior service cost                                   |                                                        |                                                  | 3,981   |           |           |  | 15,918   |          
|Unamortized net actuarial loss                                   |                                                        |                                                  | 645,766 |           |           |  | 849,937  |          
|Unamortized net initial asset                                    |                                                        |                                                  |        |           |           |  | (23      | )        
|                                                                 |                                                        |                                                  |         |           |           | 
|                                                                 |                                                        | Net amount recognized                            |         | $         | 669,738   |  |          | $         | 736,274   | 
|                                                                 |                                                        |                                                  |         |           |           | 
|Amount recognized in the consolidated balance sheet consists of: |                                                        |                                                  |         |           |           |  |          |          
|                                                                 | Prepaid benefit cost                                   |                                                  | $       | 733,453   |           |  | $        | 758,822   |          
|                                                                 | Accrued benefit liability                              |                                                  |         | (185,821  | )         |  |          | (132,765  | )        
|                                                                 | Accumulated other comprehensive loss                   |                                                  |         | 122,106   |           |  |          | 110,217   |          
|                                                                 |                                                        |                                                  |         |           |           | 
|                                                                 |                                                        | Net amount recognized                            |         | $         | 669,738   |  |          | $         | 736,274   | 
|                                                                 |                                                        |                                                  |         |           |           | 

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H. J. Heinz Company and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)






|                           |  |      |     |   |      |  |     |  
|-------------------------- |  | ---- | --- | - | ---- |  | --- | -
|                           |  | 2006 |     |   | 2005 | 
|                           |  |      |     |   |      | 
|Discount rate              |  |      | 5.3 | % |      |  | 5.5 | %
|Compensation increase rate |  |      | 4.0 | % |      |  | 4.0 | %



|                                                          |                                                                                 |                        |         |          |        |   |        |          |        |   |        |          |        |  
|--------------------------------------------------------- | ------------------------------------------------------------------------------- | ---------------------- | ------- | -------- | ------ | - | ------ | -------- | ------ | - | ------ | -------- | ------ | -
|                                                          |                                                                                 | 2006                   |         |          | 2005   |   |        | 2004     |       
|                                                          |                                                                                 |                        |         |          |        |   |        |          |       
|                                                          |                                                                                 | (Dollars in thousands) |        
|Components of defined benefit net periodic benefit cost:  |                                                                                 |                        |         |          |        |   |        |          |        |   |        |         
|                                                          | Service cost                                                                    |                        | $       | 42,081   |        |   | $      | 46,102   |        |   | $      | 42,250   |       
|                                                          | Interest cost                                                                   |                        |         | 124,064  |        |   |        | 122,981  |        |   |        | 114,822  |       
|                                                          | Expected return on assets                                                       |                        |         | (168,990 | )      |   |        | (168,371 | )      |   |        | (151,130 | )     
|                                                          | Amortization of:                                                                |                        |         |          |        |   |        |          |        |   |        |          |       
|                                                          |                                                                                 | Net initial asset      |         |          | (21    | ) |        |          | (862   | ) |        |          | (798   | )
|                                                          |                                                                                 | Prior service cost     |         |          | 2,207  |   |        |          | 9,251  |   |        |          | 8,697  |  
|                                                          |                                                                                 | Net actuarial loss     |         |          | 58,869 |   |        |          | 56,506 |   |        |          | 41,177 |  
|                                                          | Loss/(gain) due to curtailment, settlement and special
    termination benefits |                        |         | 18,846   |        |   |        |         |        |   |        | (2,348   | )     
|                                                          |                                                                                 |                        |         |          |        |   |        |          |       
|Net periodic benefit cost                                 |                                                                                 |                        | 77,056  |          |        |   | 65,607 |          |        |   | 52,670 |         
|Defined contribution plans                                |                                                                                 |                        | 28,139  |          |        |   | 25,118 |          |        |   | 22,493 |         
|                                                          |                                                                                 |                        |         |          |        |   |        |          |       
|Total pension cost                                        |                                                                                 |                        | 105,195 |          |        |   | 90,725 |          |        |   | 75,163 |         
|                                                          |                                                                                 |                        |         |          |        |   |        |          |       
|Less pension cost associated with discontinued operations |                                                                                 |                        | 375     |          |        |   | 366    |          |        |   | 480    |         
|                                                          |                                                                                 |                        |         |          |        |   |        |          |       
|Pension cost associated with continuing operations        |                                                                                 | $                      | 104,820 |          |        | $ | 90,359 |          |        | $ | 74,683 |         
|                                                          |                                                                                 |                        |         |          |        |   |        |          |       



|                           |  |      |     |   |      |  |     |      |  |  |     |  
|-------------------------- |  | ---- | --- | - | ---- |  | --- | ---- |  |  | --- | -
|                           |  | 2006 |     |   | 2005 |  |     | 2004 | 
|                           |  |      |     |   |      |  |     |      | 
|Expected rate of return    |  |      | 8.2 | % |      |  | 8.2 | %    |  |  | 8.2 | %
|Discount rate              |  |      | 5.5 | % |      |  | 5.8 | %    |  |  | 5.9 | %
|Compensation increase rate |  |      | 4.0 | % |      |  | 3.9 | %    |  |  | 4.0 | %



63



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H. J. Heinz Company and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)






| |             
| | ------------
| | Plan Assets:



|                  |       |                |     |   |        |  |     |            |   |  |     |   |  
|----------------- | ----- | -------------- | --- | - | ------ |  | --- | ---------- | - |  | --- | - | -
|                  |       | Plan Assets at |     |   |       
|                  |       |                |     |   | Target | 
|Asset Category    |       | 2006           |     |   | 2005   |  |     | Allocation |  
|                  |       |                |     |   |        |  |     |            |  
|Equity securities |       |                | 68  | % |        |  | 64  | %          |   |  | 64  | %
|Debt securities   |       |                | 29  | % |        |  | 33  | %          |   |  | 34  | %
|Real estate       |       |                | 1   | % |        |  | 1   | %          |   |  | 1   | %
|                  | Other |                |     | 2 | %      |  |     | 2          | % |  |     | 1 | %
|                  |       |                |     |   |        |  |     |            |  
|                  |       |                | 100 | % |        |  | 100 | %          |   |  | 100 | %
|                  |       |                |     |   |        |  |     |            |  





| |            
| | -----------
| | Cash Flows:





|                |  |   |         | 
|--------------- |  | - | ------- | 
|2007            |  | $ | 139,626 | 
|2008            |  | $ | 136,671 | 
|2009            |  | $ | 140,031 | 
|2010            |  | $ | 142,058 | 
|2011            |  | $ | 145,140 | 
|Years 2012-2016 |  | $ | 836,732 | 

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H. J. Heinz Company and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)




|    |                                                                                   
|--- | ----------------------------------------------------------------------------------
|13. | Postretirement Benefits Other Than Pensions and Other Post
    Employment Benefits





|                                                |                                                          |                        |          |         |      |   |          |         |  
|----------------------------------------------- | -------------------------------------------------------- | ---------------------- | -------- | ------- | ---- | - | -------- | ------- | -
|                                                |                                                          | 2006                   |          |         | 2005 |  
|                                                |                                                          |                        |          |         |      |  
|                                                |                                                          | (Dollars in thousands) |         
|Change in benefit obligation:                   |                                                          |                        |          |         |      |   |          |        
|Benefit obligation at the beginning of the year |                                                          | $                      | 290,787  |         |      | $ | 279,349  |        
|                                                | Service cost                                             |                        |          | 6,242   |      |   |          | 5,769   |  
|                                                | Interest cost                                            |                        |          | 15,631  |      |   |          | 16,057  |  
|                                                | Participants contributions                              |                        |          | 1,188   |      |   |          | 1,202   |  
|                                                | Amendments                                               |                        |          | (15,188 | )    |   |          |        |  
|                                                | Actuarial (gain)/loss                                    |                        |          | (11,703 | )    |   |          | 6,485   |  
|                                                | Loss due to curtailment and special termination benefits |                        |          | 2,037   |      |   |          |        |  
|                                                | Benefits paid                                            |                        |          | (20,778 | )    |   |          | (21,319 | )
|                                                | Exchange/other                                           |                        |          | 5,218   |      |   |          | 3,244   |  
|                                                |                                                          |                        |          |         |      |  
|Benefit obligation at the end of the year       |                                                          |                        | 273,434  |         |      |   | 290,787  |        
|                                                |                                                          |                        |          |         |      |  
|Funded status                                   |                                                          |                        | (273,434 | )       |      |   | (290,787 | )      
|Unamortized prior service cost                  |                                                          |                        | (20,118  | )       |      |   | (8,059   | )      
|Unamortized net actuarial loss                  |                                                          |                        | 67,314   |         |      |   | 84,003   |        
|                                                |                                                          |                        |          |         |      |  
|Net accrued benefit liability                   |                                                          | $                      | (226,238 | )       |      | $ | (214,843 | )      
|                                                |                                                          |                        |          |         |      |  



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H. J. Heinz Company and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)




|                                                            |                                                          |                        |        |        |        |   |        |        |        |   |        |        |        |  
|----------------------------------------------------------- | -------------------------------------------------------- | ---------------------- | ------ | ------ | ------ | - | ------ | ------ | ------ | - | ------ | ------ | ------ | -
|                                                            |                                                          | 2006                   |        |        | 2005   |   |        | 2004   |       
|                                                            |                                                          |                        |        |        |        |   |        |        |       
|                                                            |                                                          | (Dollars in thousands) |       
|Components of defined benefit net periodic benefit cost:    |                                                          |                        |        |        |        |   |        |        |        |   |        |       
|                                                            | Service cost                                             |                        | $      | 6,242  |        |   | $      | 5,769  |        |   | $      | 4,802  |       
|                                                            | Interest cost                                            |                        |        | 15,631 |        |   |        | 16,057 |        |   |        | 15,277 |       
|                                                            | Amortization of:                                         |                        |        |        |        |   |        |        |        |   |        |        |       
|                                                            |                                                          | Prior service cost     |        |        | (2,830 | ) |        |        | (3,026 | ) |        |        | (2,292 | )
|                                                            |                                                          | Net actuarial loss     |        |        | 6,925  |   |        |        | 5,634  |   |        |        | 3,801  |  
|                                                            | Loss due to curtailment and special termination benefits |                        |        | 1,846  |        |   |        |       |        |   |        | 749    |       
|                                                            |                                                          |                        |        |        |        |   |        |        |       
|Net periodic benefit cost                                   |                                                          |                        | 27,814 |        |        |   | 24,434 |        |        |   | 22,337 |       
|                                                            |                                                          |                        |        |        |        |   |        |        |       
|Periodic benefit cost associated with continuing operations |                                                          | $                      | 27,814 |        |        | $ | 24,434 |        |        | $ | 22,337 |       
|                                                            |                                                          |                        |        |        |        |   |        |        |       





|                                                     |  |                        |        |  |             |   |         |  
|---------------------------------------------------- |  | ---------------------- | ------ |  | ----------- | - | ------- | -
|                                                     |  | 1% Increase            |        |  | 1% Decrease |  
|                                                     |  |                        |        |  |             |  
|                                                     |  | (Dollars in thousands) |       
|Effect on total service and interest cost components |  | $                      | 2,046  |  |             | $ | (1,773  | )
|Effect on postretirement benefit obligation          |  | $                      | 18,485 |  |             | $ | (16,653 | )



| |            
| | -----------
| | Cash Flows:





|                |  |   |         | 
|--------------- |  | - | ------- | 
|2007            |  | $ | 23,186  | 
|2008            |  | $ | 24,167  | 
|2009            |  | $ | 24,791  | 
|2010            |  | $ | 25,461  | 
|2011            |  | $ | 26,019  | 
|Years 2012-2016 |  | $ | 131,848 | 



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H. J. Heinz Company and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)




|    |                                                        
|--- | -------------------------------------------------------
|14. | Derivative Financial Instruments and Hedging Activities







| |                          
| | -------------------------
| | Foreign Currency Hedging:









| |                       
| | ----------------------
| | Interest Rate Hedging:





| |                       
| | ----------------------
| | Hedge Ineffectiveness:



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H. J. Heinz Company and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)






| |                                   
| | ----------------------------------
| | Deferred Hedging Gains and Losses:





| |                  
| | -----------------
| | Other Activities:





| |                              
| | -----------------------------
| | Concentration of Credit Risk:





|    |                        
|--- | -----------------------
|15. | Income Per Common Share



|                                                             |                                    |                        |         |       |                |   |         |                |  |   |         |       | 
|------------------------------------------------------------ | ---------------------------------- | ---------------------- | ------- | ----- | -------------- | - | ------- | -------------- |  | - | ------- | ----- | 
|                                                             |                                    | Fiscal Year Ended      |        
|                                                             |                                    |                        |        
|                                                             |                                    | May 3, 2006            |         |       | April 27, 2005 |   |         | April 28, 2004 | 
|                                                             |                                    | (53 Weeks)             |         |       | (52 Weeks)     |   |         | (52 Weeks)     | 
|                                                             |                                    |                        |         |       |                |   |         |                | 
|                                                             |                                    | (Amounts in thousands) |        
|Income from continuing operations                            |                                    | $                      | 442,761 |       |                | $ | 688,004 |                |  | $ | 715,451 |      
|Preferred dividends                                          |                                    |                        | 14      |       |                |   | 15      |                |  |   | 16      |      
|                                                             |                                    |                        |         |       |                |   |         |                | 
|Income from continuing operations applicable to common stock |                                    | $                      | 442,747 |       |                | $ | 687,989 |                |  | $ | 715,435 |      
|                                                             |                                    |                        |         |       |                |   |         |                | 
|Average common shares outstandingbasic                      |                                    |                        | 339,102 |       |                |   | 350,042 |                |  |   | 351,810 |      
|Effect of dilutive securities:                               |                                    |                        |         |       |                |   |         |                |  |   |         |      
|                                                             | Convertible preferred stock        |                        |         | 125   |                |   |         | 137            |  |   |         | 145   | 
|                                                             | Stock options and restricted stock |                        |         | 2,894 |                |   |         | 3,271          |  |   |         | 2,417 | 
|                                                             |                                    |                        |         |       |                |   |         |                | 
|Average common shares outstandingdiluted                    |                                    |                        | 342,121 |       |                |   | 353,450 |                |  |   | 354,372 |      
|                                                             |                                    |                        |         |       |                |   |         |                | 

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H. J. Heinz Company and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)






|    |                    
|--- | -------------------
|16. | Segment Information







| |   |                                                                                                                                                                                                                                                                                                        
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | North American Consumer ProductsThis segment
    primarily manufactures, markets and sells ketchup, condiments,
    sauces, pasta meals and frozen potatoes, entrees, snacks and
    appetizers to the grocery channels in the United States of
    America and includes our Canadian business.       
|
| |  | U.S. FoodserviceThis segment primarily
    manufactures, markets and sells branded and customized products
    to commercial and non-commercial food outlets and distributors
    in the United States of America including ketchup, condiments,
    sauces and frozen soups, desserts and appetizers.
|
| |  | EuropeThis segment includes the
    Companys operations in Europe and sells products in all of
    the Companys categories.                                                                                                                                                                         
|
| |  | Asia/PacificThis segment includes the
    Companys operations in New Zealand, Australia, Japan,
    China, South Korea, Indonesia, Singapore and Thailand. This
    segments operations include products in all of the
    Companys categories.                                                    
|
| |  | Other Operating EntitiesThis segment
    includes the Companys operations in Africa, India, Latin
    America, the Middle East and other areas that sell products in
    all of the Companys categories.                                                                                            



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H. J. Heinz Company and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)




|                                 |  |                        |           |  |                    |   |           |            |  |   |            |  |  |            |         |   |            |   |         |   |  |   |         |  
|-------------------------------- |  | ---------------------- | --------- |  | ------------------ | - | --------- | ---------- |  | - | ---------- |  |  | ---------- | ------- | - | ---------- | - | ------- | - |  | - | ------- | -
|                                 |  | Fiscal Year Ended      |          
|                                 |  |                        |          
|                                 |  | May 3,                 |           |  | April 27,          |   |           | April 28,  |  |   | May 3,     |  |  | April 27,  |         |   | April 28,  |  
|                                 |  | 2006                   |           |  | 2005               |   |           | 2004       |  |   | 2006       |  |  | 2005       |         |   | 2004       |  
|                                 |  | (53 Weeks)             |           |  | (52 Weeks)         |   |           | (52 Weeks) |  |   | (53 Weeks) |  |  | (52 Weeks) |         |   | (52 Weeks) |  
|                                 |  |                        |           |  |                    |   |           |            |  |   |            |  |  |            |         |   |            |  
|                                 |  | (Dollars in thousands) |          
|                                 |  | Net External Sales     |           |  | Intersegment Sales |  
|                                 |  |                        |           |  |                    |  
|North American Consumer Products |  | $                      | 2,554,118 |  |                    | $ | 2,256,862 |            |  | $ | 2,064,937  |  |  | $          | 51,489  |   |            | $ | 51,742  |   |  | $ | 55,379  |  
|U.S. Foodservice                 |  |                        | 1,569,833 |  |                    |   | 1,503,818 |            |  |   | 1,428,641  |  |  |            | 23,285  |   |            |   | 22,550  |   |  |   | 15,310  |  
|Europe                           |  |                        | 2,987,737 |  |                    |   | 2,908,618 |            |  |   | 2,770,698  |  |  |            | 12,455  |   |            |   | 17,328  |   |  |   | 13,644  |  
|Asia/Pacific                     |  |                        | 1,116,864 |  |                    |   | 1,037,514 |            |  |   | 986,888    |  |  |            | 2,304   |   |            |   | 3,420   |   |  |   | 2,911   |  
|Other Operating Entities         |  |                        | 414,886   |  |                    |   | 396,644   |            |  |   | 374,667    |  |  |            | 1,843   |   |            |   | 1,571   |   |  |   | 2,188   |  
|Non-Operating (a)                |  |                        |          |  |                    |   |          |            |  |   |           |  |  |            | (91,376 | ) |            |   | (96,611 | ) |  |   | (89,432 | )
|                                 |  |                        |           |  |                    |   |           |            |  |   |            |  |  |            |         |   |            |  
|Consolidated Totals              |  | $                      | 8,643,438 |  |                    | $ | 8,103,456 |            |  | $ | 7,625,831  |  |  | $          |        |   |            | $ |        |   |  | $ |        |  
|                                 |  |                        |           |  |                    |   |           |            |  |   |            |  |  |            |         |   |            |  

|                                 |  |                         |           |                                       |               |   |           |   |  |   |           |   |  |   |           |   |  |   |           |   |  |   |           |  
|-------------------------------- |  | ----------------------- | --------- | ------------------------------------- | ------------- | - | --------- | - |  | - | --------- | - |  | - | --------- | - |  | - | --------- | - |  | - | --------- | -
|                                 |  |                         |           | Operating Income (Loss) Excluding (b) |              
|                                 |  | Operating Income (Loss) |           |                                       | Special Items |  
|                                 |  |                         |           |                                       |               |  
|North American Consumer Products |  | $                       | 583,367   |                                       |               | $ | 530,444   |   |  | $ | 474,129   |   |  | $ | 589,958   |   |  | $ | 530,444   |   |  | $ | 479,453   |  
|U.S. Foodservice                 |  |                         | 177,292   |                                       |               |   | 224,784   |   |  |   | 211,129   |   |  |   | 212,053   |   |  |   | 224,784   |   |  |   | 215,029   |  
|Europe                           |  |                         | 414,178   |                                       |               |   | 499,951   |   |  |   | 574,627   |   |  |   | 526,372   |   |  |   | 526,927   |   |  |   | 550,327   |  
|Asia/Pacific                     |  |                         | 85,211    |                                       |               |   | 113,119   |   |  |   | 107,999   |   |  |   | 112,440   |   |  |   | 113,119   |   |  |   | 107,999   |  
|Other Operating Entities         |  |                         | 17,854    |                                       |               |   | 34,739    |   |  |   | 29,934    |   |  |   | 45,732    |   |  |   | 34,739    |   |  |   | 30,934    |  
|Non-Operating (a)                |  |                         | (164,290  | )                                     |               |   | (121,565  | ) |  |   | (121,729  | ) |  |   | (136,564  | ) |  |   | (121,565  | ) |  |   | (115,871  | )
|                                 |  |                         |           |                                       |               |   |           |   |  |   |           |   |  |   |           |   |  |  
|Consolidated Totals              |  | $                       | 1,113,612 |                                       |               | $ | 1,281,472 |   |  | $ | 1,276,089 |   |  | $ | 1,349,991 |   |  | $ | 1,308,448 |   |  | $ | 1,267,871 |  
|                                 |  |                         |           |                                       |               |   |           |   |  |   |           |   |  |   |           |   |  |  

|                         |  |                                        |         |  |                          |   |         |  |  |   |         |  |  |   |         |  |  |   |         |  |  |   |         | 
|------------------------ |  | -------------------------------------- | ------- |  | ------------------------ | - | ------- |  |  | - | ------- |  |  | - | ------- |  |  | - | ------- |  |  | - | ------- | 
|                         |  | Depreciation and Amortization Expenses |         |  | Capital Expenditures (c) |  
|                         |  |                                        |         |  |                          |  
|Total North America      |  | $                                      | 103,492 |  |                          | $ | 96,649  |  |  | $ | 88,110  |  |  | $ | 82,726  |  |  | $ | 95,194  |  |  | $ | 110,946 | 
|Europe                   |  |                                        | 98,106  |  |                          |   | 95,970  |  |  |   | 89,623  |  |  |   | 102,275 |  |  |   | 98,729  |  |  |   | 73,212  | 
|Asia/Pacific             |  |                                        | 27,021  |  |                          |   | 26,186  |  |  |   | 24,557  |  |  |   | 34,206  |  |  |   | 28,961  |  |  |   | 36,870  | 
|Other Operating Entities |  |                                        | 7,036   |  |                          |   | 7,664   |  |  |   | 7,403   |  |  |   | 8,412   |  |  |   | 8,997   |  |  |   | 9,202   | 
|Non-Operating (a)        |  |                                        | 11,778  |  |                          |   | 9,102   |  |  |   | 7,984   |  |  |   | 2,958   |  |  |   | 8,790   |  |  |   | 1,731   | 
|                         |  |                                        |         |  |                          |   |         |  |  |   |         |  |  |   |         |  |  |  
|Consolidated Totals      |  | $                                      | 247,433 |  |                          | $ | 235,571 |  |  | $ | 217,677 |  |  | $ | 230,577 |  |  | $ | 240,671 |  |  | $ | 231,961 | 
|                         |  |                                        |         |  |                          |   |         |  |  |   |         |  |  |   |         |  |  |  

|                         |  |                     |           |  |  |   |            |  |  |   |           |  |  |  |  |  |  |  |  |  |  |  |  | 
|------------------------ |  | ------------------- | --------- |  |  | - | ---------- |  |  | - | --------- |  |  |  |  |  |  |  |  |  |  |  |  | 
|                         |  | Identifiable Assets |           |  |  |   |            |  | 
|                         |  |                     |           |  |  |   |            |  | 
|Total North America      |  | $                   | 3,530,639 |  |  | $ | 3,606,034  |  |  | $ | 3,356,878 |  |  |  |  |  |  |  |  |  |  |  |  | 
|Europe                   |  |                     | 4,285,233 |  |  |   | 4,437,891  |  |  |   | 3,788,378 |  |  |  |  |  |  |  |  |  |  |  |  | 
|Asia/Pacific             |  |                     | 1,138,566 |  |  |   | 1,364,882  |  |  |   | 1,242,953 |  |  |  |  |  |  |  |  |  |  |  |  | 
|Other Operating Entities |  |                     | 278,113   |  |  |   | 280,952    |  |  |   | 276,130   |  |  |  |  |  |  |  |  |  |  |  |  | 
|Non-Operating (d)        |  |                     | 505,216   |  |  |   | 887,959    |  |  |   | 1,212,850 |  |  |  |  |  |  |  |  |  |  |  |  | 
|                         |  |                     |           |  |  |   |            |  |  |   |           |  |  |  |  |  |  | 
|Consolidated Totals      |  | $                   | 9,737,767 |  |  | $ | 10,577,718 |  |  | $ | 9,877,189 |  |  |  |  |  |  |  |  |  |  |  |  | 
|                         |  |                     |           |  |  |   |            |  |  |   |           |  |  |  |  |  |  | 



|    |  |                                                                                                                        
|--- |  | -----------------------------------------------------------------------------------------------------------------------
|(a) |  | Includes corporate overhead, intercompany eliminations and
    charges not directly attributable to operating segments.

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H. J. Heinz Company and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)




|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) |  | Fiscal year ended May 3, 2006: Excludes costs
    associated with targeted workforce reductions, costs incurred in
    connection with strategic reviews of several non-core businesses
    and net losses/ impairment charge on divestures as follows:
    North American Consumer Products, $6.6 million;
    U.S. Foodservice, $34.8 million; Europe,
    $112.2 million; Asia/ Pacific, $27.2 million; Other
    Operating, $27.9 million; and Non-Operating
    $27.7 million.
|   
|    |  | Fiscal year ended April 27, 2005: Excludes
    the $27.0 million non-cash asset impairment charge on the
    HAK®
    vegetable product line in Northern Europe.                                                                                                                                                                                                                                                                                                                   
|   
|    |  | Fiscal year ended April 28, 2004: Excludes
    the gain on disposal of the bakery business in Northern Europe,
    reorganization costs and the write down of pizza crust assets in
    the United Kingdom as follows: North American Consumer
    Products $5.3 million, U.S. Foodservice
    $3.9 million, Europe $(24.3) million, Other Operating
    Entities $1.0 million, and Non-Operating $5.9 million.                                                                    
|   
|(c) |  | Excludes property, plant and equipment obtained through
    acquisitions.                                                                                                                                                                                                                                                                                                                                                                                                          
|   
|(d) |  | Includes identifiable assets not directly attributable to
    operating segments.                                                                                                                                                                                                                                                                                                                                                                                                  





|                   |  |                        |           |  |            |   |           |            |  |   |           | 
|------------------ |  | ---------------------- | --------- |  | ---------- | - | --------- | ---------- |  | - | --------- | 
|                   |  | Fiscal Year Ended      |          
|                   |  |                        |          
|                   |  | May 3,                 |           |  | April 27,  |   |           | April 28,  | 
|                   |  | 2006                   |           |  | 2005       |   |           | 2004       | 
|                   |  | (53 Weeks)             |           |  | (52 Weeks) |   |           | (52 Weeks) | 
|                   |  |                        |           |  |            |   |           |            | 
|                   |  | (Dollars in thousands) |          
|Ketchup and sauces |  | $                      | 3,530,346 |  |            | $ | 3,234,229 |            |  | $ | 3,047,662 | 
|Meals and snacks   |  |                        | 3,876,743 |  |            |   | 3,680,920 |            |  |   | 3,309,831 | 
|Infant foods       |  |                        | 863,943   |  |            |   | 855,558   |            |  |   | 908,469   | 
|Other              |  |                        | 372,406   |  |            |   | 332,749   |            |  |   | 359,869   | 
|                   |  |                        |           |  |            |   |           |            | 
|Total              |  | $                      | 8,643,438 |  |            | $ | 8,103,456 |            |  | $ | 7,625,831 | 
|                   |  |                        |           |  |            |   |           |            | 



|               |  |                        |           |  |                   |   |           |            |  |   |           |  |  |           |           |  |           |   |           |  |  |   |           | 
|-------------- |  | ---------------------- | --------- |  | ----------------- | - | --------- | ---------- |  | - | --------- |  |  | --------- | --------- |  | --------- | - | --------- |  |  | - | --------- | 
|               |  | Fiscal Year Ended      |          
|               |  |                        |          
|               |  | Net External Sales     |           |  | Long-Lived Assets |  
|               |  |                        |           |  |                   |  
|               |  | May 3,                 |           |  | April 27,         |   |           | April 28,  |  |   |          
|               |  | 2006                   |           |  | 2005              |   |           | 2004       |  |   | May 3,    |  |  | April 27, |           |  | April 28, |  
|               |  | (53 Weeks)             |           |  | (52 Weeks)        |   |           | (52 Weeks) |  |   | 2006      |  |  | 2005      |           |  | 2004      |  
|               |  |                        |           |  |                   |   |           |            |  |   |           |  |  |           |           |  |           |  
|               |  | (Dollars in thousands) |          
|United States  |  | $                      | 3,693,262 |  |                   | $ | 3,379,961 |            |  | $ | 3,167,424 |  |  | $         | 2,085,039 |  |           | $ | 1,894,964 |  |  | $ | 1,857,041 | 
|United Kingdom |  |                        | 1,636,089 |  |                   |   | 1,600,978 |            |  |   | 1,450,141 |  |  |           | 1,442,562 |  |           |   | 751,496   |  |  |   | 707,763   | 
|Other          |  |                        | 3,314,087 |  |                   |   | 3,122,517 |            |  |   | 3,008,266 |  |  |           | 2,241,941 |  |           |   | 2,479,204 |  |  |   | 2,246,217 | 
|               |  |                        |           |  |                   |   |           |            |  |   |           |  |  |           |           |  |           |  
|Total          |  | $                      | 8,643,438 |  |                   | $ | 8,103,456 |            |  | $ | 7,625,831 |  |  | $         | 5,769,542 |  |           | $ | 5,125,664 |  |  | $ | 4,811,021 | 
|               |  |                        |           |  |                   |   |           |            |  |   |           |  |  |           |           |  |           |  

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H. J. Heinz Company and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)




|    |                  
|--- | -----------------
|17. | Quarterly Results

|                                            |                        |                                                  |           |         |            |   |           |            |  |   |            |         |  |            |           |       |  |   |           |         | 
|------------------------------------------- | ---------------------- | ------------------------------------------------ | --------- | ------- | ---------- | - | --------- | ---------- |  | - | ---------- | ------- |  | ---------- | --------- | ----- |  | - | --------- | ------- | 
|                                            |                        | 2006                                             |          
|                                            |                        |                                                  |          
|                                            |                        | First                                            |           |         | Second     |   |           | Third      |  |   | Fourth     |         |  | Total      |          
|                                            |                        | (13 Weeks)                                       |           |         | (13 Weeks) |   |           | (13 Weeks) |  |   | (14 Weeks) |         |  | (53 Weeks) |          
|                                            |                        |                                                  |           |         |            |   |           |            |  |   |            |         |  |            |          
|                                            |                        | (Unaudited)                                      |          
|                                            |                        | (Dollars in thousands, except per share amounts) |          
|Sales(1)                                    |                        | $                                                | 1,900,278 |         |            | $ | 2,156,984 |            |  | $ | 2,186,524  |         |  | $          | 2,399,652 |       |  | $ | 8,643,438 |        
|Gross profit(1)                             |                        |                                                  | 702,562   |         |            |   | 803,772   |            |  |   | 780,717    |         |  |            | 806,023   |       |  |   | 3,093,074 |        
|Income from continuing                      |                        |                                                  |           |         |            |   |           |            |  |   |            |         |  |            |           |       |  |   |           |        
|                                            | operations(1)          |                                                  |           | 140,173 |            |   |           | 168,331    |  |   |            | 133,178 |  |            |           | 1,079 |  |   |           | 442,761 | 
|Net income                                  |                        |                                                  | 157,274   |         |            |   | 203,821   |            |  |   | 116,600    |         |  |            | 167,908   |       |  |   | 645,603   |        
|Per Share Amounts:                          |                        |                                                  |           |         |            |   |           |            |  |   |            |         |  |            |           |       |  |   |           |        
|Income from continuing                      |                        |                                                  |           |         |            |   |           |            |  |   |            |         |  |            |           |       |  |   |           |        
|                                            | operations diluted(1) |                                                  | $         | 0.40    |            |   | $         | 0.49       |  |   | $          | 0.39    |  |            | $         | 0.00  |  |   | $         | 1.29    | 
|Income from continuing operations basic(1) |                        |                                                  | 0.41      |         |            |   | 0.50      |            |  |   | 0.40       |         |  |            | 0.00      |       |  |   | 1.31      |        
|Cash dividends                              |                        |                                                  | 0.30      |         |            |   | 0.30      |            |  |   | 0.30       |         |  |            | 0.30      |       |  |   | 1.20      |        

|                                     |                         |                                                  |           |      |            |   |           |            |  |   |            |      |  |            |           |      |  |   |           |      | 
|------------------------------------ | ----------------------- | ------------------------------------------------ | --------- | ---- | ---------- | - | --------- | ---------- |  | - | ---------- | ---- |  | ---------- | --------- | ---- |  | - | --------- | ---- | 
|                                     |                         | 2005                                             |          
|                                     |                         |                                                  |          
|                                     |                         | First                                            |           |      | Second     |   |           | Third      |  |   | Fourth     |      |  | Total      |          
|                                     |                         | (13 Weeks)                                       |           |      | (13 Weeks) |   |           | (13 Weeks) |  |   | (13 Weeks) |      |  | (52 Weeks) |          
|                                     |                         |                                                  |           |      |            |   |           |            |  |   |            |      |  |            |          
|                                     |                         | (Unaudited)                                      |          
|                                     |                         | (Dollars in thousands, except per share amounts) |          
|Sales(1)                             |                         | $                                                | 1,791,130 |      |            | $ | 2,012,661 |            |  | $ | 2,069,159  |      |  | $          | 2,230,506 |      |  | $ | 8,103,456 |     
|Gross profit(1)                      |                         |                                                  | 683,126   |      |            |   | 767,435   |            |  |   | 784,734    |      |  |            | 798,235   |      |  |   | 3,033,530 |     
|Income from continuing operations(1) |                         |                                                  | 175,017   |      |            |   | 189,991   |            |  |   | 131,512    |      |  |            | 191,484   |      |  |   | 688,004   |     
|Net income                           |                         |                                                  | 194,836   |      |            |   | 198,965   |            |  |   | 152,411    |      |  |            | 206,487   |      |  |   | 752,699   |     
|Per Share Amounts:                   |                         |                                                  |           |      |            |   |           |            |  |   |            |      |  |            |           |      |  |   |           |     
|Income from continuing               |                         |                                                  |           |      |            |   |           |            |  |   |            |      |  |            |           |      |  |   |           |     
|                                     | operations diluted( 1) |                                                  | $         | 0.49 |            |   | $         | 0.54       |  |   | $          | 0.37 |  |            | $         | 0.54 |  |   | $         | 1.95 | 
|Income from continuing               |                         |                                                  |           |      |            |   |           |            |  |   |            |      |  |            |           |      |  |   |           |     
|                                     | operations basic(1)    |                                                  |           | 0.50 |            |   |           | 0.54       |  |   |            | 0.38 |  |            |           | 0.55 |  |   |           | 1.97 | 
|Cash dividends                       |                         |                                                  | 0.285     |      |            |   | 0.285     |            |  |   | 0.285      |      |  |            | 0.285     |      |  |   | 1.14      |     



|    |                                                                                                                                                                                                                                                                                                   
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Amounts exclude the operating results related to the
    Companys European seafood business and
    Tegel®
    poultry business in New Zealand, which were divested during
    Fiscal 2006 and which were presented as discontinued operations
    beginning in the third quarter of Fiscal 2006.





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H. J. Heinz Company and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


e-commerce HAK ®




|    |                              
|--- | -----------------------------
|18. | Commitments and Contingencies



| |               
| | --------------
| | Legal Matters:





| |                   
| | ------------------
| | Lease Commitments:







|    |                  
|--- | -----------------
|19. | Advertising Costs



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##### Table of Contents





|        |                                                                                          
|------- | -----------------------------------------------------------------------------------------
|Item 9. | Changes in and Disagreements with Accountants on Accounting
    and Financial Disclosure.





|         |                         
|-------- | ------------------------
|Item 9A. | Controls and Procedures.



| |     |                                                 
| | --- | ------------------------------------------------
| | (a) | Evaluation of Disclosure Controls and Procedures















Item 9B.     Other
Information.




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##### Table of Contents



PART III




|         |                                                    
|-------- | ---------------------------------------------------
|Item 10. | Directors and Executive Officers of the Registrant.





|         |                        
|-------- | -----------------------
|Item 11. | Executive Compensation.





|         |                                                                    
|-------- | -------------------------------------------------------------------
|Item 12. | Security Ownership of Certain Beneficial Owners and
    Management.





Equity Compensation Plan Information


|                                                             |  |                         |            |  |                      |                      |       |                          |  |  |            |       
|------------------------------------------------------------ |  | ----------------------- | ---------- |  | -------------------- | -------------------- | ----- | ------------------------ |  |  | ---------- | ------
|                                                             |  | (a)                     |            |  | (b)                  |                      |       | (c)                      | 
|                                                             |  |                         |            |  |                      |                      |       |                          | 
|                                                             |  |                         |            |  |                      | Number of securities |      
|                                                             |  |                         |            |  |                      | remaining available  |      
|                                                             |  |                         |            |  |                      | for future issuance  |      
|                                                             |  | Number of securities to |            |  | Weighted-average     |                      |       | under equity             | 
|                                                             |  | be issued upon exercise |            |  | exercise price of    |                      |       | compensation Plans       | 
|                                                             |  | of outstanding options, |            |  | outstanding options, |                      |       | (excluding securities    | 
|                                                             |  | warrants and rights     |            |  | warrants and rights  |                      |       | reflected in column (a)) | 
|                                                             |  |                         |            |  |                      |                      |       |                          | 
|Equity Compensation plans approved by stockholders           |  |                         | 33,584,529 |  |                      | $                    | 39.08 |                          |  |  | 15,195,626 |       
|Equity Compensation plans not approved by stockholders(1)(2) |  |                         | 132,078    |  |                      |                      | N/A   | (3)                      |  |  | N/A        | (1)(4)
|                                                             |  |                         |            |  |                      |                      |       |                          | 
|Total                                                        |  |                         | 33,716,607 |  |                      | $                    | 39.08 |                          |  |  | 15,195,626 |       
|                                                             |  |                         |            |  |                      |                      |       |                          | 



|    |                                                                                                                                                                                                                                                                                              
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The H. J. Heinz Company Restricted Stock Recognition Plan for
    Salaried Employees (the Restricted Stock Plan) is
    designed to provide recognition and reward in the form of awards
    of restricted stock to employees who have a history of
    outstanding accomplishment and who,

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|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    | because of their experience and skills, are expected to continue
    to contribute significantly to the success of the Company.
    Eligible employees are those full-time salaried employees not
    participating in the shareholder-approved H. J. Heinz Company
    Incentive Compensation Plan in effect as of May 1, 2002,
    and who have not been awarded an option to purchase Company
    Common Stock. The Company has ceased issuing shares from this
    Restricted Stock Plan, and it is the Companys intention to
    terminate the Restricted Stock Plan once all restrictions on
    previously issued shares are lifted. All awards of this type are
    now made under the Fiscal Year 2003 Stock Incentive Plan.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   
|(2) | The Executive Deferred Compensation Plan, as amended and
    restated on December 27, 2001 and the Deferred Compensation
    Plan for Non-Employee Directors as amended and restated on
    January 1, 2004, permit full-time salaried personnel based
    in the U.S. who have been identified as key employees and
    non-employee directors, to defer all or part of his or her cash
    compensation into either a cash account that accrues interest,
    or into a Heinz stock account. The election to defer is
    irrevocable. The Management Development & Compensation
    Committee of the Board of Directors administers the Plan. All
    amounts are payable at the times and in the amounts elected by
    the executives at the time of the deferral. The deferral period
    shall be at least one year and shall be no greater than the date
    of retirement or other termination, whichever is earlier.
    Amounts deferred into cash accounts are payable in cash, and all
    amounts deferred into the Heinz stock account are payable in
    Heinz Common Stock. Compensation deferred into the Heinz stock
    account appreciates or depreciates according to the fair market
    value of Heinz Common Stock.
|   
|(3) | The grants made under the Restricted Stock Plan, the Executive
    Deferred Compensation Plan and the Deferred Compensation Plan
    for Non-Employee Directors are restricted or reserved shares of
    Common Stock, and therefore there is no exercise price.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   
|(4) | The maximum number of shares of Common Stock that the Chief
    Executive Officer may grant under the Restricted Stock Plan has
    been established annually by the Executive Committee of the
    Board of Directors; provided, however, that such number of
    shares shall not exceed in any plan year 1% of all then
    outstanding shares of Common Stock.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          



|         |                                                
|-------- | -----------------------------------------------
|Item 13. | Certain Relationships and Related Transactions.





|         |                                     
|-------- | ------------------------------------
|Item 14. | Principal Auditor Fees and Services.



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PART IV




|         |                                            
|-------- | -------------------------------------------
|Item 15. | Exhibits and Financial Statement Schedules.

|       |  |                                                                                                                                                                                                                                                                                        |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  | 
|------ |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |  | 
|(a)(1) |  | The following financial statements and reports are filed as part
    of this report under Item 8 Financial
    Statements and Supplementary Data:                                                                                                                                  
|       |  |                                                                                                                                                                                                                                                                                        |  | Consolidated Balance Sheets as of May 3, 2006 and
    April 27, 2005                                                                                                                                                                                                                                                                                                                                                                                                              
|       |  |                                                                                                                                                                                                                                                                                        |  | Consolidated Statements of Income for the fiscal years ended
    May 3, 2006, April 27, 2005 and April 28, 2004                                                                                                                                                                                                                                                                                                                                                                   
|       |  |                                                                                                                                                                                                                                                                                        |  | Consolidated Statements of Shareholders Equity for the
    fiscal years ended May 3, 2006, April 27, 2005 and
    April 28, 2004                                                                                                                                                                                                                                                                                                                                                 
|       |  |                                                                                                                                                                                                                                                                                        |  | Consolidated Statements of Cash Flows for the fiscal years ended
    May 3, 2006, April 27, 2005 and April 28, 2004                                                                                                                                                                                                                                                                                                                                                               
|       |  |                                                                                                                                                                                                                                                                                        |  | Notes to Consolidated Financial Statements                                                                                                                                                                                                                                                                                                                                                                                                                                        
|       |  |                                                                                                                                                                                                                                                                                        |  | Report of Independent Registered Public Accounting Firm of
    PricewaterhouseCoopers LLP dated June 20, 2006, on the
    Companys consolidated financial statements and financial
    statement schedule filed as a part hereof for the fiscal years
    ended May 3, 2006, April 27, 2005 and April 28,
    2004                                                                                                                                                               
|(2)    |  | The following report and schedule is filed herewith as a part
    hereof:                                                                                                                                                                                                             
|       |  |                                                                                                                                                                                                                                                                                        |  | Consent of Independent Registered Public Accounting Firm of
    PricewaterhouseCoopers LLP dated June 20, 2006 filed as a
    part hereof                                                                                                                                                                                                                                                                                                                                         
|       |  |                                                                                                                                                                                                                                                                                        |  | Schedule II (Valuation and Qualifying Accounts and
    Reserves) for the three fiscal years ended May 3, 2006,
    April 27, 2005 and April 28, 2004                                                                                                                                                                                                                                                                                                                              
|       |  |                                                                                                                                                                                                                                                                                        |  | All other schedules are omitted because they are not applicable
    or the required information is included herein or is shown in
    the consolidated financial statements or notes thereto filed as
    part of this report incorporated herein by reference.                                                                                                                                                                                                                   
|(3)    |  | Exhibits required to be filed by Item 601 of
    Regulation S-K are listed below. Documents not designated
    as being incorporated herein by reference are filed herewith.
    The paragraph numbers correspond to the exhibit numbers
    designated in Item 601 of Regulation S-K.
|       |  | 3(i)                                                                                                                                                                                                                                                                                   |  | The Companys Articles of Amendment dated July 13,
    1994, amending and restating the Companys amended and
    restated Articles of Incorporation in their entirety, are
    incorporated herein by reference to Exhibit 3(i) to the
    Companys Annual Report on Form 10-K for the fiscal
    year ended April 27, 1994.                                                                                                                                                    
|       |  | 3(ii)                                                                                                                                                                                                                                                                                  |  | The Companys By-Laws, as amended effective June 12,
    2002 are incorporated herein by reference to Exhibit 3 to
    the Companys Quarterly Report on Form 10-Q for the
    three months ended July 31, 2002.                                                                                                                                                                                                                                                                  
|       |  | 4.                                                                                                                                                                                                                                                                                     |  | Except as set forth below, there are no instruments with respect
    to long-term debt of the Company that involve indebtedness or
    securities authorized thereunder in amounts that exceed
    10 percent of the total assets of the Company on a
    consolidated basis. The Company agrees to file a copy of any
    instrument or agreement defining the rights of holders of
    long-term debt of the Company upon request of the Securities and
    Exchange Commission.
|       |  |                                                                                                                                                                                                                                                                                        |  | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  | The Indenture among the Company, H. J. Heinz Finance Company,
    and Bank One, National Association dated as of July 6, 2001
    relating to the H. J. Heinz Finance Companys
    $750,000,000 6.625% Guaranteed Notes due 2011, $700,000,000
    6.00% Guaranteed Notes due 2012 and $550,000,000 6.75%
    Guaranteed Notes due 2032 is incorporated herein by reference to
    Exhibit 4 of the Companys Annual Report on
    Form 10-K for the fiscal year ended May 1, 2002.

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| |  |       |  |                                              |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  |                                                                                                                                                                                                                                                                                                                        
| |  | ----- |  | -------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |       |  | (b)                                          |  | The Certificate of Designations, Preferences and Rights of
    Voting Cumulative Preferred Stock, Series A of H. J. Heinz
    Finance Company is incorporated herein by reference to
    Exhibit 4 of the Companys Quarterly Report on
    Form 10-Q for the three months ended August 1, 2001.                                                                                                                                                       
| |  |       |  | (c)                                          |  | Amended and Restated Five-Year Credit Agreement dated as of
    September 6, 2001 and amended and restated as of
    August 4, 2004 among H.J. Heinz Company, H.J. Heinz Finance
    Company, the Banks listed on the signature pages thereto and JP
    Morgan Chase Bank, as Administrative Agent, is incorporated
    herein by reference to Exhibit 4 to the Companys
    quarterly report on Form 10-Q for the period ended
    January 25, 2006.
| |  | 10(a) |  | Management contracts and compensatory plans:
| |  |       |  |                                              |  | (i)                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  | 1986 Deferred Compensation Program for H. J. Heinz Company and
    affiliated companies, as amended and restated in its entirety
    effective December 6, 1995, is incorporated herein by
    reference to Exhibit 10(c)(i) to the Companys Annual
    Report on Form 10-K for the fiscal year ended May 1,
    1995.
| |  |       |  |                                              |  | (ii)                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  | H. J. Heinz Company 1990 Stock Option Plan is incorporated
    herein by reference to Appendix A to the Companys Proxy
    Statement dated August 3, 1990.                                                                                                                                                            
| |  |       |  |                                              |  | (iii)                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | H. J. Heinz Company 1994 Stock Option Plan is incorporated
    herein by reference to Appendix A to the Companys Proxy
    Statement dated August 5, 1994.                                                                                                                                                            
| |  |       |  |                                              |  | (iv)                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  | H. J. Heinz Company Supplemental Executive Retirement Plan, as
    amended, is incorporated herein by reference to Exhibit
    10(c)(ix) to the Companys Annual Report on Form 10-K
    for the fiscal year ended April 28, 1993.                                                                                     
| |  |       |  |                                              |  | (v)                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  | H. J. Heinz Company Executive Deferred Compensation Plan (as
    amended and restated on December 27, 2001) is incorporated
    by reference to Exhibit 10(a)(vii) of the Companys
    Annual Report on Form 10-K for the fiscal year ended
    May 1, 2002.                                                          
| |  |       |  |                                              |  | (vi)                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  | H. J. Heinz Company Incentive Compensation Plan is incorporated
    herein by reference to Appendix B to the Companys Proxy
    Statement dated August 5, 1994.                                                                                                                                                       
| |  |       |  |                                              |  | (vii)                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | H. J. Heinz Company Stock Compensation Plan for Non-Employee
    Directors is incorporated herein by reference to Appendix A to
    the Companys Proxy Statement dated August 3, 1995.                                                                                                                                
| |  |       |  |                                              |  | (viii)                                                                                                                                                                                                                                                                                                                                                                                                                                                  |  | H. J. Heinz Company 1996 Stock Option Plan is incorporated
    herein by reference to Appendix A to the Companys Proxy
    Statement dated August 2, 1996.                                                                                                                                                            
| |  |       |  |                                              |  | (ix)                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  | H. J. Heinz Company Deferred Compensation Plan for Directors is
    incorporated herein by reference to Exhibit 10(a)(xiii) to
    the Companys Annual Report on Form 10-K for the
    fiscal year ended April 29, 1998.                                                                                              
| |  |       |  |                                              |  | (x)                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  | Form of Severance Protection Agreement is incorporated herein by
    reference to Exhibit 10(a)(xiv) to the Companys
    Annual Report on Form 10-K for the fiscal year ended
    May 3, 2000.                                                                                                                        
| |  |       |  |                                              |  | (xi)                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  | H. J. Heinz Company 2000 Stock Option Plan is incorporated
    herein by reference to Appendix A to the Companys Proxy
    Statement dated August 4, 2000.                                                                                                                                                            
| |  |       |  |                                              |  | (xii)                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | H. J. Heinz Company Executive Estate Life Insurance Program is
    incorporated herein by reference to Exhibit 10(a)(xv) to
    the Companys Annual Report on Form 10-K for the
    fiscal year ended May 1, 2002.                                                                                                    

78



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| |  |  |  |  |  |         |  |                                                                                                                                                                                                                                                                                                        
| |  |  |  |  |  | ------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |  |  |  |  | (xiii)  |  | H. J. Heinz Company Restricted Stock Recognition Plan for
    Salaried Employees is incorporated herein by reference to
    Exhibit 10(a)(xvi) to the Companys Annual Report on
    Form 10-K for the fiscal year ended May 1, 2002.                                                                  
| |  |  |  |  |  | (xiv)   |  | H. J. Heinz Company Fiscal Year 2003 Stock Incentive Plan is
    incorporated by reference to the Companys Proxy Statement
    dated August 2, 2002.                                                                                                                                                  
| |  |  |  |  |  | (xv)    |  | H. J. Heinz Company Senior Executive Incentive Compensation Plan
    is incorporated by reference to the Companys Proxy
    Statement dated August 2, 2002.                                                                                                                                           
| |  |  |  |  |  | (xvi)   |  | Form of First Amendment to Severance Protection Agreement
    incorporated by reference to the Companys Annual Report on
    Form 10-K for the fiscal year ended April 28, 2004.                                                                                                                      
| |  |  |  |  |  | (xvii)  |  | Deferred Compensation Plan for Non-Employee Directors of
    H. J. Heinz Company (as amended and restated effective
    January 1, 2004), is incorporated herein by reference to
    Exhibit 10 to the Companys Quarterly Report on
    Form 10-Q for the quarterly period ended January 28,
    2004.
| |  |  |  |  |  | (xviii) |  | Form of Stock Option Award and Agreement for U.S. Employees
    is incorporated herein by reference to Exhibit 10(a) to the
    Companys Quarterly Report on Form 10-Q for the
    quarterly period ended January 26, 2005.                                                                           
| |  |  |  |  |  | (xix)   |  | Form of Stock Option Award and Agreement for U.S. Employees
    Based in the U.K. on International Assignment is incorporated
    herein by reference to Exhibit 10(a) to the Companys
    Quarterly Report on Form 10-Q for the quarterly period
    ended January 26, 2005.                         
| |  |  |  |  |  | (xx)    |  | Form of Restricted Stock Unit Award and Agreement for
    U.S. Employees is incorporated herein by reference to
    Exhibit 10(a) to the Companys Quarterly Report on
    Form 10-Q for the quarterly period ended January 26,
    2005.                                                              
| |  |  |  |  |  | (xxi)   |  | Form of Restricted Stock Unit Award and Agreement for
    Non-U.S. Based Employees is incorporated herein by
    reference to Exhibit 10(a) to the Companys Quarterly
    Report on Form 10-Q for the quarterly period ended
    January 26, 2005.                                                    
| |  |  |  |  |  | (xxii)  |  | Form of Five-Year Restricted Stock Unit Retention Award and
    Agreement for U.S. Employees is incorporated herein by
    reference to Exhibit 10(a) to the Companys Quarterly
    Report on Form 10-Q for the quarterly period ended
    January 26, 2005.                                          
| |  |  |  |  |  | (xxiii) |  | Form of Five-Year Restricted Stock Unit Retention Award and
    Agreement for Non-U.S. Based Employees is incorporated
    herein by reference to Exhibit 10(a) to the Companys
    Quarterly Report on Form 10-Q for the quarterly period
    ended January 26, 2005.                                
| |  |  |  |  |  | (xxiv)  |  | Form of Three-Year Restricted Stock Unit Retention Award and
    Agreement for U.S. Employees is incorporated herein by
    reference to Exhibit 10(a) to the Companys Quarterly
    Report on Form 10-Q for the quarterly period ended
    January 26, 2005.                                         
| |  |  |  |  |  | (xxv)   |  | Form of Three-Year Restricted Stock Unit Retention Award and
    Agreement for Non-U.S. Based Employees is incorporated
    herein by reference to Exhibit 10(a) to the Companys
    Quarterly Report on Form 10-Q for the quarterly period
    ended January 26, 2005.                               
| |  |  |  |  |  | (xxvi)  |  | Form of Performance Unit Award Agreement is incorporated herein
    by reference to Exhibit 10(a) to the Companys
    Quarterly Report on Form 10-Q for the quarterly period
    ended January 26, 2005.                                                                                              

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| |  |       |  |                                                                                                                 |  |           |  |                                                                                                                                                                                                                                      
| |  | ----- |  | --------------------------------------------------------------------------------------------------------------- |  | --------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |       |  |                                                                                                                 |  | (xxvii)   |  | Named Executive Officer Compensation                                                                                                                                                                                                 
| |  |       |  |                                                                                                                 |  | (xxviii)  |  | Jeffrey P. Berger Restricted Stock Unit Award and Agreement
    dated November 9, 2004 is incorporated herein by reference
    to the Companys Annual Report on Form 10-K for the
    fiscal year ended April 27, 2005.             
| |  |       |  |                                                                                                                 |  | (xxix)    |  | Form of Fiscal Year 2006 Restricted Stock Unit Award and
    Agreement for U.S. Employees is incorporated herein by
    reference to the Companys Annual Report on Form 10-K
    for the fiscal year ended April 27, 2005.          
| |  |       |  |                                                                                                                 |  | (xxx)     |  | Form of Fiscal Year 2006 Restricted Stock Unit Award and
    Agreement for non-U.S. Based Employees is incorporated
    herein by reference to the Companys Annual Report on
    Form 10-K for the fiscal year ended April 27, 2005.
| |  |       |  |                                                                                                                 |  | (xxxi)    |  | Amendment Number One to the H.J. Heinz Company Fiscal Year 2003
    Incentive Plan is incorporated herein by reference to the
    Companys Annual Report on Form 10-K for the fiscal
    year ended April 27, 2005.                 
| |  |       |  |                                                                                                                 |  | (xxxii)   |  | Amendment Number One to the H.J. Heinz Company 2000 Stock Option
    Plan is incorporated herein by reference to the Companys
    Annual Report on Form 10-K for the fiscal year ended
    April 27, 2005.                          
| |  |       |  |                                                                                                                 |  | (xxxiii)  |  | Amendment Number One to the H.J. Heinz Company 1996 Stock Option
    Plan is incorporated herein by reference to the Companys
    Annual Report on Form 10-K for the fiscal year ended
    April 27, 2005.                          
| |  |       |  |                                                                                                                 |  | (xxxiv)   |  | Form of Fiscal Year 2006 Severance Protection Agreement is
    incorporated herein by reference to the Companys Annual
    Report on Form 10-K for the fiscal year ended
    April 27, 2005.                                        
| |  |       |  |                                                                                                                 |  | (xxxv)    |  | Amended and Restated H.J. Heinz Company Global Stock Purchase
    Plan.                                                                                                                                                              
| |  |       |  |                                                                                                                 |  | (xxxvi)   |  | Letter to Joseph Jimenez, Jr. dated April 28, 2006.                                                                                                                                                                                  
| |  |       |  |                                                                                                                 |  | (xxxvii)  |  | General Release of Joseph Jimenez, Jr. dated April 28,
    2006.                                                                                                                                                                     
| |  |       |  |                                                                                                                 |  | (xxxviii) |  | Form of Long-Term Performance Program Award Agreement is hereby
    incorporated by reference to Exhibit 99 of the
    Companys Form 8-K filed on June 12, 2006.                                                                    
| |  | 12.   |  | Computation of Ratios of Earnings to Fixed Charges.                                                            
| |  | 21.   |  | Subsidiaries of the Registrant.                                                                                
| |  | 23.   |  | The following Exhibit is filed by incorporation by reference to
    Item 15(a)(2) of this Report:              
| |  |       |  | (a)  Consent of PricewaterhouseCoopers LLP.                                                                    
| |  | 24.   |  | Powers-of-attorney of the Companys directors.                                                                 
| |  | 31(a) |  | Rule 13a-14(a)/15d-14(a) Certification by the Chief
    Executive Officer.                                     
| |  | 31(b) |  | Rule 13a-14(a)/15d-14(a) Certification by the Chief
    Financial Officer.                                     
| |  | 32(a) |  | Certification by the Chief Executive Officer Relating to the
    Annual Report Containing Financial Statements.
| |  | 32(b) |  | Certification by the Chief Financial Officer Relating to the
    Annual Report Containing Financial Statements.



80



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##### Table of Contents



SIGNATURES






| |                    
| | -------------------
| | H. J. HEINZ COMPANY
| | (Registrant)       



| |     |                          
| | --- | -------------------------
| | By: | /s/ Arthur B. Winkleblack

| |                                                     
| | ----------------------------------------------------
| | ................................................    
| | Arthur B. Winkleblack                               
| | Executive Vice President and Chief Financial Officer



|                                                                                              |  |                                                                                               
|--------------------------------------------------------------------------------------------- |  | ----------------------------------------------------------------------------------------------
|Signature                                                                                     |  | Capacity                                                                                      
|                                                                                              |  |                                                                                               
|/s/ William R. Johnson...........................................William R. Johnson           |  | Chairman, President and
     Chief Executive Officer
    (Principal Executive Officer)        
|/s/ Arthur B.
    Winkleblack...........................................Arthur B. Winkleblack |  | Executive Vice President and
     Chief Financial Officer
    (Principal Financial Officer)   
|/s/ Edward J. McMenamin...........................................Edward J. McMenamin         |  | Senior Vice President-Finance and
     Corporate Controller
    (Principal Accounting Officer)

|                                                                                                                                                                                                                                                      |  |                                                                                                                                                                                                         |  |                                                                                                            
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -----------------------------------------------------------------------------------------------------------
|William R. Johnson
    Charles E. Bunch
    Mary C. Choksi
    Leonard S. Coleman, Jr.
    Peter H. Coors
    John G. Drosdick
    Edith E. Holiday
    Candace Kendle
    Dean R. OHare
    Dennis H. Reilley
    Lynn C. Swann
    Thomas J. Usher |  | Director   }
    Director   }
    Director   }
    Director   }
    Director   }
    Director   }
    Director   }
    Director   }
    Director   }
    Director   }
    Director   }
    Director   } |  | By /s/ Arthur B.
    Winkleblack......................................Arthur B. WinkleblackAttorney-in-Fact

81



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##### Table of Contents



CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


S-8 33-32563, 33-42015, 33-55777, 33-62623, 333-13849, 333-87419, 333-49728 333-100820) 10-K.


PricewaterhouseCoopers
LLP








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##### Table of Contents



Schedule II


H. J. Heinz Company and Subsidiaries


VALUATION AND QUALIFYING ACCOUNTS AND RESERVES


Fiscal Years Ended May 3, 2006, April 27, 2005 and
April 28, 2004


(Thousands of Dollars)


|                                  |                                                                                 |             |  |           |            |  |  |          |        |  |            |   |            |        |  |   |        |     |  |   |        | 
|--------------------------------- | ------------------------------------------------------------------------------- | ----------- |  | --------- | ---------- |  |  | -------- | ------ |  | ---------- | - | ---------- | ------ |  | - | ------ | --- |  | - | ------ | 
|                                  |                                                                                 |             |  | Additions |            |  |  |          |       
|                                  |                                                                                 |             |  |           |            |  |  |          |       
|                                  |                                                                                 | Balance at  |  |           | Charged to |  |  | Charged  |        |  |            |   | Balance at |       
|                                  |                                                                                 | beginning   |  |           | costs and  |  |  | to other |        |  |            |   | end of     |       
|Description                       |                                                                                 | of period   |  |           | expenses   |  |  | accounts |        |  | Deductions |   |            | period | 
|                                  |                                                                                 |             |  |           |            |  |  |          |        |  |            |   |            |        | 
|Fiscal year ended May 3, 2006:    |                                                                                 |             |  |           |            |  |  |          |        |  |            |   |            |        |  |   |        |     |  |  
|                                  | Reserves deducted in the balance sheet from the assets to which
    they apply: |             |  |           |            |  |  |          |        |  |            |   |            |        |  |   |        |     |  |   |       
|                                  |                                                                                 | Receivables |  | $         | 21,844     |  |  | $        | 3,213  |  |            | $ |           |        |  | $ | 8,069  |     |  | $ | 16,988 | 
|                                  |                                                                                 |             |  |           |            |  |  |          |        |  |            |   |            |        | 
|Fiscal year ended April 27, 2005: |                                                                                 |             |  |           |            |  |  |          |        |  |            |   |            |        |  |   |        |     |  |  
|                                  | Reserves deducted in the balance sheet from the assets to which
    they apply: |             |  |           |            |  |  |          |        |  |            |   |            |        |  |   |        |     |  |   |       
|                                  |                                                                                 | Receivables |  | $         | 21,313     |  |  | $        | 9,267  |  |            | $ | 2,390      |        |  | $ | 11,126 |     |  | $ | 21,844 | 
|                                  |                                                                                 |             |  |           |            |  |  |          |        |  |            |   |            |        | 
|Fiscal year ended April 28, 2004: |                                                                                 |             |  |           |            |  |  |          |        |  |            |   |            |        |  |   |        |     |  |  
|                                  | Reserves deducted in the balance sheet from the assets to which
    they apply: |             |  |           |            |  |  |          |        |  |            |   |            |        |  |   |        |     |  |   |       
|                                  |                                                                                 | Receivables |  | $         | 22,199     |  |  | $        | 12,457 |  |            | $ |           |        |  | $ | 13,343 | (1) |  | $ | 21,313 | 
|                                  |                                                                                 |             |  |           |            |  |  |          |        |  |            |   |            |        | 

Notes




|    |                                                                                
|--- | -------------------------------------------------------------------------------
|(1) | Principally reserves on assets sold, written-off, reclassified
    or spun off.



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##### Table of Contents



EXHIBIT INDEX


| |  |                                                                                                                                                                                                                                                                                        |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  | 
| |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |  | 
| |  | Description of Exhibit                                                                                                                                                                                                                                                                
| |  |                                                                                                                                                                                                                                                                                       
| |  | Exhibits required to be filed by Item 601 of
    Regulation S-K are listed below. Documents not designated
    as being incorporated herein by reference are filed herewith.
    The paragraph numbers correspond to the exhibit numbers
    designated in Item 601 of Regulation S-K.
| |  | 3(i)                                                                                                                                                                                                                                                                                   |  | The Companys Articles of Amendment dated July 13,
    1994, amending and restating the Companys amended and
    restated Articles of Incorporation in their entirety, are
    incorporated herein by reference to Exhibit 3(i) to the
    Companys Annual Report on Form 10-K for the fiscal
    year ended April 27, 1994.                                                                                                                                                    
| |  | 3(ii)                                                                                                                                                                                                                                                                                  |  | The Companys By-Laws, as amended effective June 12,
    2002 are incorporated herein by reference to Exhibit 3 to
    the Companys Quarterly Report on Form 10-Q for the
    three months ended July 31, 2002.                                                                                                                                                                                                                                                                  
| |  | 4.                                                                                                                                                                                                                                                                                     |  | Except as set forth below, there are no instruments with respect
    to long-term debt of the Company that involve indebtedness or
    securities authorized thereunder in amounts that exceed
    10 percent of the total assets of the Company on a
    consolidated basis. The Company agrees to file a copy of any
    instrument or agreement defining the rights of holders of
    long-term debt of the Company upon request of the Securities and
    Exchange Commission.
| |  |                                                                                                                                                                                                                                                                                        |  | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  | The Indenture among the Company, H. J. Heinz Finance Company,
    and Bank One, National Association dated as of July 6, 2001
    relating to the H. J. Heinz Finance Companys $750,000,000
    6.625% Guaranteed Notes due 2011, $700,000,000 6.00% Guaranteed
    Notes due 2012 and $550,000,000 6.75% Guaranteed Notes due 2032
    is incorporated herein by reference to Exhibit 4 of the
    Companys Annual Report on Form 10-K for the fiscal
    year ended May 1, 2002.
| |  |                                                                                                                                                                                                                                                                                        |  | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  | The Certificate of Designations, Preferences and Rights of
    Voting Cumulative Preferred Stock, Series A of H. J. Heinz
    Finance Company is incorporated herein by reference to
    Exhibit 4 of the Companys Quarterly Report on
    Form 10-Q for the three months ended August 1, 2001.                                                                                                                                                                                    
| |  |                                                                                                                                                                                                                                                                                        |  | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  | Amended and Restated Five-Year Credit Agreement dated as of
    September 6, 2001 and amended and restated as of
    August 4, 2004 among H.J. Heinz Company, H.J. Heinz Finance
    Company, the Banks listed on the signature pages thereto and JP
    Morgan Chase Bank, as Administrative Agent, is incorporated
    herein by reference to Exhibit 4 to the Companys
    quarterly report on Form 10-Q for the period ended
    January 25, 2006.                             
| |  | 10(a)                                                                                                                                                                                                                                                                                  |  | Management contracts and compensatory plans:                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |  |                                                                                                                                                                                                                                                                                        |  | (i)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  | 1986 Deferred Compensation Program for H. J. Heinz Company and
    affiliated companies, as amended and restated in its entirety
    effective December 6, 1995, is incorporated herein by
    reference to Exhibit 10(c)(i) to the Companys Annual
    Report on Form 10-K for the fiscal year ended May 1,
    1995.                                                                                                                                                             
| |  |                                                                                                                                                                                                                                                                                        |  | (ii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |  | H. J. Heinz Company 1990 Stock Option Plan is incorporated
    herein by reference to Appendix A to the Companys
    Proxy Statement dated August 3, 1990.                                                                                                                                                                                                                                                                                                                         



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##### Table of Contents



| |  |                        |  |        |  |                                                                                                                                                                                                                                                               |  | 
| |  | ---------------------- |  | ------ |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | 
| |  | Description of Exhibit
| |  |                       
| |  |                        |  | (iii)  |  | H. J. Heinz Company 1994 Stock Option Plan is incorporated
    herein by reference to Appendix A to the Companys
    Proxy Statement dated August 5, 1994.                                                                                                  
| |  |                        |  | (iv)   |  | H. J. Heinz Company Supplemental Executive Retirement Plan, as
    amended, is incorporated herein by reference to
    Exhibit 10(c)(ix) to the Companys Annual Report on
    Form 10-K for the fiscal year ended April 28, 1993.                           
| |  |                        |  | (v)    |  | H. J. Heinz Company Executive Deferred Compensation Plan (as
    amended and restated on December 27, 2001) is incorporated
    by reference to Exhibit 10(a)(vii) of the Companys
    Annual Report on Form 10-K for the fiscal year ended
    May 1, 2002.
| |  |                        |  | (vi)   |  | H. J. Heinz Company Incentive Compensation Plan is incorporated
    herein by reference to Appendix B to the Companys
    Proxy Statement dated August 5, 1994.                                                                                             
| |  |                        |  | (vii)  |  | H. J. Heinz Company Stock Compensation Plan for Non-Employee
    Directors is incorporated herein by reference to Appendix A
    to the Companys Proxy Statement dated August 3, 1995.                                                                      
| |  |                        |  | (viii) |  | H. J. Heinz Company 1996 Stock Option Plan is incorporated
    herein by reference to Appendix A to the Companys
    Proxy Statement dated August 2, 1996.                                                                                                  
| |  |                        |  | (ix)   |  | H. J. Heinz Company Deferred Compensation Plan for Directors is
    incorporated herein by reference to Exhibit 10(a)(xiii) to
    the Companys Annual Report on Form 10-K for the
    fiscal year ended April 29, 1998.                                    
| |  |                        |  | (x)    |  | Form of Severance Protection Agreement is incorporated herein by
    reference to Exhibit 10(a)(xiv) to the Companys
    Annual Report on Form 10-K for the fiscal year ended
    May 3, 2000.                                                              
| |  |                        |  | (xi)   |  | H. J. Heinz Company 2000 Stock Option Plan is incorporated
    herein by reference to Appendix A to the Companys
    Proxy Statement dated August 4, 2000.                                                                                                  
| |  |                        |  | (xii)  |  | H. J. Heinz Company Executive Estate Life Insurance Program is
    incorporated herein by reference to Exhibit 10(a)(xv) to
    the Companys Annual Report on Form 10-K for the
    fiscal year ended May 1, 2002.                                          
| |  |                        |  | (xiii) |  | H. J. Heinz Company Restricted Stock Recognition Plan for
    Salaried Employees is incorporated herein by reference to
    Exhibit 10(a)(xvi) to the Companys Annual Report on
    Form 10-K for the fiscal year ended May 1, 2002.                        
| |  |                        |  | (xiv)  |  | H. J. Heinz Company Fiscal Year 2003 Stock Incentive Plan is
    incorporated by reference to the Companys Proxy Statement
    dated August 2, 2002.                                                                                                        
| |  |                        |  | (xv)   |  | H. J. Heinz Company Senior Executive Incentive Compensation Plan
    is incorporated by reference to the Companys Proxy
    Statement dated August 2, 2002.                                                                                                 
| |  |                        |  | (xvi)  |  | Form of First Amendment to Severance Protection Agreement
    incorporated by reference to the Companys Annual Report on
    Form 10-K for the fiscal year ended April 28, 2004.                                                                            



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##### Table of Contents



| |  |                        |  |          |  |                                                                                                                                                                                                                                                                                                     |  | 
| |  | ---------------------- |  | -------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | 
| |  | Description of Exhibit
| |  |                       
| |  |                        |  | (xvii)   |  | Deferred Compensation Plan for Non-Employee Directors of H. J.
    Heinz Company (as amended and restated effective January 1,
    2004), is incorporated herein by reference to Exhibit 10 to
    the Companys Quarterly Report on Form 10-Q for the
    quarterly period ended January 28, 2004.
| |  |                        |  | (xviii)  |  | Form of Stock Option Award and Agreement for U.S. Employees
    is incorporated herein by reference to Exhibit 10(a) to the
    Companys Quarterly Report on Form 10-Q for the
    quarterly period ended January 26, 2005.                                                                       
| |  |                        |  | (xix)    |  | Form of Stock Option Award and Agreement for U.S. Employees
    Based in the U.K. on International Assignment is incorporated
    herein by reference to Exhibit 10(a) to the Companys
    Quarterly Report on Form 10-Q for the quarterly period
    ended January 26, 2005.                     
| |  |                        |  | (xx)     |  | Form of Restricted Stock Unit Award and Agreement for
    U.S. Employees is incorporated herein by reference to
    Exhibit 10(a) to the Companys Quarterly Report on
    Form 10-Q for the quarterly period ended January 26,
    2005.                                                          
| |  |                        |  | (xxi)    |  | Form of Restricted Stock Unit Award and Agreement for
    Non-U.S. Based Employees is incorporated herein by
    reference to Exhibit 10(a) to the Companys Quarterly
    Report on Form 10-Q for the quarterly period ended
    January 26, 2005.                                                
| |  |                        |  | (xxii)   |  | Form of Five-Year Restricted Stock Unit Retention Award and
    Agreement for U.S. Employees is incorporated herein by
    reference to Exhibit 10(a) to the Companys Quarterly
    Report on Form 10-Q for the quarterly period ended
    January 26, 2005.                                      
| |  |                        |  | (xxiii)  |  | Form of Five-Year Restricted Stock Unit Retention Award and
    Agreement for Non-U.S. Based Employees is incorporated
    herein by reference to Exhibit 10(a) to the Companys
    Quarterly Report on Form 10-Q for the quarterly period
    ended January 26, 2005.                            
| |  |                        |  | (xxiv)   |  | Form of Three-Year Restricted Stock Unit Retention Award and
    Agree- ment for U.S. Employees is incorporated herein by
    reference to Exhibit 10(a) to the Companys Quarterly
    Report on Form 10-Q for the quarterly period ended
    January 26, 2005.                                   
| |  |                        |  | (xxv)    |  | Form of Three-Year Restricted Stock Unit Retention Award and
    Agreement for Non-U.S. Based Employees is incorporated
    herein by reference to Exhibit 10(a) to the Companys
    Quarterly Report on Form 10-Q for the quarterly period
    ended January 26, 2005.                           
| |  |                        |  | (xxvi)   |  | Form of Performance Unit Award Agreement is incorporated herein
    by reference to Exhibit 10(a) to the Companys
    Quarterly Report on Form 10-Q for the quarterly period
    ended January 26, 2005.                                                                                          
| |  |                        |  | (xxvii)  |  | Named Executive Officer Compensation                                                                                                                                                                                                                                                               
| |  |                        |  | (xxviii) |  | Jeffrey P. Berger Restricted Stock Unit Award and Agreement
    dated November 9, 2004 is incorporated herein by reference
    to the Companys Annual Report on Form 10-K for the
    fiscal year ended April 27, 2005.                                                                           



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##### Table of Contents



| |  |                        |  |                                                                                                                                                 |  |                                                                                                                                                                                                                                       |  | 
| |  | ---------------------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | 
| |  | Description of Exhibit
| |  |                       
| |  |                        |  | (xxix)                                                                                                                                          |  | Form of Fiscal Year 2006 Restricted Stock Unit Award and
    Agreement for U.S. Employees is incorporated herein by
    reference to the Companys Annual Report on Form 10-K
    for the fiscal year ended April 27, 2005.          
| |  |                        |  | (xxx)                                                                                                                                           |  | Form of Fiscal Year 2006 Restricted Stock Unit Award and
    Agreement for non-U.S. Based Employees is incorporated
    herein by reference to the Companys Annual Report on
    Form 10-K for the fiscal year ended April 27, 2005.
| |  |                        |  | (xxxi)                                                                                                                                          |  | Amendment Number One to the H.J. Heinz Company Fiscal Year 2003
    Incentive Plan is incorporated herein by reference to the
    Companys Annual Report on Form 10-K for the fiscal
    year ended April 27, 2005.                 
| |  |                        |  | (xxxii)                                                                                                                                         |  | Amendment Number One to the H.J. Heinz Company 2000 Stock Option
    Plan is incorporated herein by reference to the Companys
    Annual Report on Form 10-K for the fiscal year ended
    April 27, 2005.                          
| |  |                        |  | (xxxiii)                                                                                                                                        |  | Amendment Number One to the H.J. Heinz Company 1996 Stock Option
    Plan is incorporated herein by reference to the Companys
    Annual Report on Form 10-K for the fiscal year ended
    April 27, 2005.                          
| |  |                        |  | (xxxiv)                                                                                                                                         |  | Form of Fiscal Year 2006 Severance Protection Agreement is
    incorporated herein by reference to the Companys Annual
    Report on Form 10-K for the fiscal year ended
    April 27, 2005.                                        
| |  |                        |  | (xxxv)                                                                                                                                          |  | Amended and Restated H.J. Heinz Company Global Stock Purchase
    Plan.                                                                                                                                                              
| |  |                        |  | (xxxvi)                                                                                                                                         |  | Letter to Joseph Jimenez, Jr. dated April 28, 2006.                                                                                                                                                                                  
| |  |                        |  | (xxxvii)                                                                                                                                        |  | General Release of Joseph Jimenez, Jr. dated April 28,
    2006.                                                                                                                                                                     
| |  |                        |  | (xxxviii)                                                                                                                                       |  | Form of Long-Term Performance Program Award Agreement is hereby
    incorporated by reference to Exhibit 99 of the
    Companys Form 8-K filed on June 12, 2006.                                                                    
| |  | 12.                    |  | Computation of Ratios of Earnings to Fixed Charges.                                                                                            
| |  | 21.                    |  | Subsidiaries of the Registrant.                                                                                                                
| |  | 23.                    |  | The following Exhibit is filed by incorporation by reference to
    Item 15(a)(2) of this Report:(a) Consent of
    PricewaterhouseCoopers LLP.
| |  | 24.                    |  | Powers-of-attorney of the Companys directors.                                                                                                 
| |  | 31(a)                  |  | Rule 13a-14(a)/15d-14(a) Certification by the Chief
    Executive Officer.                                                                     
| |  | 31(b)                  |  | Rule 13a-14(a)/15d-14(a) Certification by the Chief
    Financial Officer.                                                                     
| |  | 32(a)                  |  | Certification by the Chief Executive Officer Relating to the
    Annual Report Containing Financial Statements.                                
| |  | 32(b)                  |  | Certification by the Chief Financial Officer Relating to the
    Annual Report Containing Financial Statements.