##### Table of Contents









SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549





Form 10-K


For Annual and Transition Reports Pursuant to
Sections 13 or 15(d)


of the Securities Exchange Act of 1934


|           |  |                                                                                             
|---------- |  | --------------------------------------------------------------------------------------------
|(Mark One) |  |                                                                                             
|þ          |  | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934    
|           |  | For The Fiscal Year Ended December 31, 2005                                                 
|           |  | OR                                                                                          
|          
|o          |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934

Commission File Number 1-08262


Dean Holding Company


(Exact name of Registrant as specified in its charter)








|                                                                    |  |                                         
|------------------------------------------------------------------- |  | ----------------------------------------
|Delaware                                                            |  | 75-2932967                              
|(State or other jurisdiction of
     incorporation or organization) |  | (I.R.S. Employer
    Identification No.)

2515 McKinney Avenue


Suite 1200


Dallas, Texas 75201


(214) 303-3400


(Address, including zip code, and telephone number,
including


area code, of Registrants principal executive
offices)


Securities Registered Pursuant to Section 12(b) of the
Act:


None


Securities Registered Pursuant to Section 12(g) of the
Act:


None


þ o


o þ


þ o


S-K 10-K 10-K þ


12b-2


o o þ


12b-2 o þ




10-K










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##### 










TABLE OF CONTENTS


|                                                  |  |                                                                                                                      |     |                                        |    |  |   | 
|------------------------------------------------- |  | -------------------------------------------------------------------------------------------------------------------- | --- | -------------------------------------- | -- |  | - | 
|                                                  |  |                                                                                                                      |     | Page                                   |   
|                                                  |  |                                                                                                                      |     |                                        |   
|PART I                                           
|1.                                                |  | Business                                                                                                             |     |                                        | 1  | 
|                                                  |  |                                                                                                                      |     | General                                |    |  | 1 | 
|                                                  |  |                                                                                                                      |     | Developments since
    January 1, 2005 |    |  | 3 | 
|                                                  |  |                                                                                                                      |     | Employees                              |    |  | 4 | 
|                                                  |  |                                                                                                                      |     | Where You Can Get More Information     |    |  | 4 | 
|1A.                                               |  | Risk Factors                                                                                                         |     |                                        | 4  | 
|1B.                                               |  | Unresolved Staff Comments                                                                                            |     |                                        | 5  | 
|2.                                                |  | Properties                                                                                                           |     |                                        | 6  | 
|3.                                                |  | Legal Proceedings                                                                                                    |     |                                        | 7  | 
|4.                                                |  | Submission of Matters to a Vote of Security
    Holders                                                              |     |                                        | 7  | 
|                                                 
|PART II                                          
|5.                                                |  | Market for Registrants Common Equity,
    Related Stockholder Matters and Issuer Purchases of Equity
    Securities |     |                                        | 8  | 
|6.                                                |  | Selected Financial Data                                                                                              |     |                                        | 8  | 
|7.                                                |  | Managements Discussion and Analysis
    of Financial Condition and Results of Operations                            |     |                                        | 8  | 
|7A.                                               |  | Quantitative and Qualitative Disclosures
    About Market Risk                                                       |     |                                        | 10 | 
|8.                                                |  | Consolidated Financial Statements                                                                                    |     |                                        | 11 | 
|9.                                                |  | Changes in and Disagreements with
    Accountants on Accounting and Financial Disclosure                             |     |                                        | 12 | 
|9A.                                               |  | Controls and Procedures                                                                                              |     |                                        | 12 | 
|9B.                                               |  | Other Information                                                                                                    |     |                                        | 13 | 
|                                                 
|PART III                                         
|10.                                               |  | Directors and Executive Officers                                                                                     |     |                                        | 13 | 
|11.                                               |  | Executive Compensation                                                                                               |     |                                        | 13 | 
|12.                                               |  | Security Ownership of Certain Beneficial
    Owners and Management                                                   |     |                                        | 13 | 
|13.                                               |  | Certain Relationships and Related
    Transactions                                                                   |     |                                        | 13 | 
|14.                                               |  | Principal Accountant Fees and Services                                                                               |     |                                        | 13 | 
|                                                 
|PART IV                                          
|15.                                               |  | Exhibits and Financial Statement
    Schedule                                                                        |     |                                        | 14 | 
|Signatures                                        |  |                                                                                                                      | S-1 |                                       
|Computation of Ratio of Earnings to Fixed Charges
|Certification of CEO Pursuant to Section 302     
|Certification of CFO Pursuant to Section 302     
|Certification of CEO Pursuant to Section 906     
|Certification of CFO Pursuant to Section 906     





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##### Table of Contents






PART I







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

Explanatory Note: As permitted by General
Instruction I(2)(d) to
Form 10-K, in lieu
of the information required by Item 1 of
Form 10-K, we are
providing only the information required by General
Instruction I(2)(d). For more information, this report
should be read in conjunction with the 2005 Annual Report on
Form 10-K of our
parent, Dean Foods Company, as filed with the Securities and
Exchange Commission on March 10, 2006.





General








|                 |  |                  |  |                    
|---------------- |  | ---------------- |  | -------------------
|(PRODUCTS CHART) |  | (CHANNELS CHART) |  | (PRODUCT MIX CHART)






|    |                                                                                                                                                        
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Includes, among other things, regular milk, flavored milks,
    buttermilk, half-and-half, whipping cream, dairy coffee creamers
    and ice cream mix.
|   
|(2) | Includes ice cream and ice cream novelties.                                                                                                            
|   
|(3) | Includes yogurt, cottage cheese, sour cream and dairy-based dips.                                                                                      
|   
|(4) | Includes fruit juice, fruit-flavored drinks and water.                                                                                                 
|   
|(5) | Includes, among other things, items for resale such as butter,
    cheese and eggs.                                                                    
|   
|(6) | Such as restaurants, hotels and other foodservice outlets.                                                                                             

1



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|                                  |  |                    
|--------------------------------- |  | -------------------
|East Region(1)                    |  | West Region(1)     
|                                  |  |                    
|Barbers®                         |  | Alta
    Dena®     
|Deans®                           |  | Berkeley
    Farms
|LANDOLAKES®
    (licensed brand) |  | Creamland         
|Maplehurst®                       |  | Deans®            
|Mayfield®                         |  | Gandys®           
|McArthur®                         |  | Prices           
|Meadowbrook®                      |  | Swiss             
|Purity                           |  |                    
|Reiter®                           |  |                    
|Swiss
    Premium®                |  |                    
|TG
    Lee®                       |  |                    
|Verifine®                         |  |                    






|    |                                                                                                                                                                                                           
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Dean Foods Companys Dairy Group segment operates in a
    generally decentralized manner organized by region. Our
    operations are disbursed among two of Dean Foods Companys
    Dairy Group regions.













2



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Developments Since January 1, 2005




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







| |                                               
| | ----------------------------------------------
| | Facility Closing and Reorganization Activities





| |   |                                                                                                                                                                                                                                                                                                                                                       
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Workforce reductions as a result of facility closings, facility
    reorganizations and consolidation of administrative functions;                                                                                                                                                                                                                    
|
| |  | Shutdown costs, including those costs necessary to prepare
    abandoned facilities for closure;                                                                                                                                                                                                                                                      
|
| |  | Costs incurred after shutdown such as lease obligations or
    termination costs, utilities and property taxes; and                                                                                                                                                                                                                                   
|
| |  | Write-downs of property, plant and equipment and other assets,
    primarily for asset impairments as a result of facilities that
    are no longer used in operations. The impairments relate
    primarily to owned buildings, land and equipment at the
    facilities, which are written down to their estimated fair value
    and held for sale.



3



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Employees




Where You Can Get More Information




1-800-SEC-0330


http://www.sec.gov.


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


www.deanfoods.com.




| |                                 
| | --------------------------------
| | Dean Foods Company              
| | 2515 McKinney Avenue, Suite 1200
| | Dallas, Texas 75201             
| | (214) 303-3400                  
| | Attention: Investor Relations   






|         |             
|-------- | ------------
|Item 1A. | Risk Factors



4



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| |                                                                                                                
| | ---------------------------------------------------------------------------------------------------------------
| | Changes in Laws, Regulations and Accounting Standards
    Could Have an Adverse Effect on Our Financial Results





| |                                                                                              
| | ---------------------------------------------------------------------------------------------
| | Loss of Rights to Any of Our Licensed Brands Could
    Adversely Affect Our Sales and Profits

LAND OLAKES




| |                                                                      
| | ---------------------------------------------------------------------
| | Decisions Made by Dean Foods Company Could Affect Our
    Performance





| |                                                                                              
| | ---------------------------------------------------------------------------------------------
| | Dean Foods Company has Substantial Debt and Other
    Financial Obligations that We Guarantee










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



5



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

Explanatory Note: As permitted by General
Instruction I(2)(d) to
Form 10-K, in lieu
of the information required by Item 2 of
Form 10-K, we are
providing only the information required by General
Instruction I(2)(d).




|       |  |            |    |  |                         |                               
|------ |  | ---------- | -- |  | ----------------------- | ------------------------------
|       |  | Number of  |    |  |                        
|Region |  | Facilities |    |  | Locations of Facilities
|       |  |            |    |  |                        
|East   |  |            | 26 |  |                         |  Birmingham, Alabama(2)      
|       |  |            |    |  |                         |  Miami, Florida              
|       |  |            |    |  |                         |  Orange City, Florida        
|       |  |            |    |  |                         |  Orlando, Florida            
|       |  |            |    |  |                         |  Braselton, Georgia          
|       |  |            |    |  |                         |  Belvidere, Illinois         
|       |  |            |    |  |                         |  Chemung, Illinois           
|       |  |            |    |  |                         |  Huntley, Illinois           
|       |  |            |    |  |                         |  Rockford, Illinois          
|       |  |            |    |  |                         |  Rochester, Indiana          
|       |  |            |    |  |                         |  Louisville, Kentucky        
|       |  |            |    |  |                         |  Evart, Michigan             
|       |  |            |    |  |                         |  Thief River Falls, Minnesota
|       |  |            |    |  |                         |  Woodbury, Minnesota         
|       |  |            |    |  |                         |  Bismark, North Dakota       
|       |  |            |    |  |                         |  Akron, Ohio                 
|       |  |            |    |  |                         |  Springfield, Ohio           
|       |  |            |    |  |                         |  Belleville, Pennsylvania    
|       |  |            |    |  |                         |  Erie, Pennsylvania          
|       |  |            |    |  |                         |  Lebanon, Pennsylvania       
|       |  |            |    |  |                         |  Sharpsville, Pennsylvania   
|       |  |            |    |  |                         |  Sioux Falls, South Dakota   
|       |  |            |    |  |                         |  Athens, Tennessee           
|       |  |            |    |  |                         |  Nashville, Tennessee        
|       |  |            |    |  |                         |  Sheboygan, Wisconsin        
|West   |  |            | 7  |  |                         |  Buena Park, California(2)   
|       |  |            |    |  |                         |  City of Industry, California
|       |  |            |    |  |                         |  Hayward, California         
|       |  |            |    |  |                         |  Albuquerque, New Mexico     
|       |  |            |    |  |                         |  El Paso, Texas              
|       |  |            |    |  |                         |  Lubbock, Texas              



6



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








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

10-K.


7



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PART II







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








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

10-K.







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

Explanatory Note: As permitted by General
Instruction I(2)(a) to
Form 10-K, in lieu
of the information required by Item 7, we are providing
only the information required by General
Instruction I(2)(a).


Results of Operations




|                                   |                               |                                           |         |       |         |  |       |         |      |   |         |       |       |  |       |      |      | 
|---------------------------------- | ----------------------------- | ----------------------------------------- | ------- | ----- | ------- |  | ----- | ------- | ---- | - | ------- | ----- | ----- |  | ----- | ---- | ---- | 
|                                   |                               | Year Ended December 31                    |        
|                                   |                               |                                           |        
|                                   |                               | 2005                                      |         |       | 2004    | 
|                                   |                               |                                           |         |       |         | 
|                                   |                               | Dollars                                   |         |       | Percent |  |       | Dollars |      |   | Percent |      
|                                   |                               |                                           |         |       |         |  |       |         |      |   |         |      
|                                   |                               | (Dollars in millions)                     |        
|Net sales                          |                               | $                                         | 3,698.4 |       |         |  | 100.0 | %       |      | $ | 3,633.1 |       |       |  | 100.0 | %   
|Cost of sales                      |                               |                                           | 2,799.5 |       |         |  | 75.7  |         |      |   | 2,782.2 |       |       |  | 76.6  |     
|                                   |                               |                                           |         |       |         |  |       |         |      |   |         |      
|                                   | Gross profit                  |                                           |         | 898.9 |         |  |       | 24.3    |      |   |         | 850.9 |       |  |       | 23.4 |     
|                                   | Operating costs and expenses: |                                           |         |       |         |  |       |         |      |   |         |       |       |  |       |      |     
|                                   |                               | Selling and distribution                  |         |       | 532.7   |  |       |         | 14.4 |   |         |       | 510.7 |  |       |      | 14.1 | 
|                                   |                               | General and administrative                |         |       | 117.9   |  |       |         | 3.2  |   |         |       | 121.3 |  |       |      | 3.3  | 
|                                   |                               | Amortization of intangibles               |         |       | 1.1     |  |       |         |     |   |         |       | 1.2   |  |       |      |     | 
|                                   |                               | Facility closing and reorganization costs |         |       | 3.2     |  |       |         | 0.1  |   |         |       | 4.5   |  |       |      | 0.1  | 
|                                   |                               |                                           |         |       |         |  |       |         |      |   |         |      
|Total operating costs and expenses |                               |                                           | 654.9   |       |         |  | 17.7  |         |      |   | 637.7   |       |       |  | 17.5  |     
|                                   |                               |                                           |         |       |         |  |       |         |      |   |         |      
|Total operating income             |                               | $                                         | 244.0   |       |         |  | 6.6   | %       |      | $ | 213.2   |       |       |  | 5.9   | %   
|                                   |                               |                                           |         |       |         |  |       |         |      |   |         |      



| |                                                                          
| | -------------------------------------------------------------------------
| | Year Ended December 31, 2005 Compared to Year Ended
    December 31, 2004



Net Sales


|               |                         |                       |         |      |         |  |     |     |  
|-------------- | ----------------------- | --------------------- | ------- | ---- | ------- |  | --- | --- | -
|               |                         | Dollars               |         |      | Percent | 
|               |                         |                       |         |      |         | 
|               |                         | (Dollars in millions) |        
|2004 Net sales |                         | $                     | 3,633.1 |      |         |  |     |    
|               | Volume                  |                       |         | 29.7 |         |  |     | 0.8 | %
|               | Pricing and product mix |                       |         | 35.6 |         |  |     | 1.0 |  
|               |                         |                       |         |      |         | 
|2005 Net sales |                         | $                     | 3,698.4 |      |         |  | 1.8 | %  
|               |                         |                       |         |      |         | 

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|                                  |  |                         |      |     |      |   |      |          |  |  |     |  
|--------------------------------- |  | ----------------------- | ---- | --- | ---- | - | ---- | -------- |  |  | --- | -
|                                  |  | Year Ended December 31* |     
|                                  |  |                         |     
|                                  |  | 2005                    |      |     | 2004 |   |      | % Change | 
|                                  |  |                         |      |     |      |   |      |          | 
|Class I raw skim milk mover(1)    |  | $                       | 8.54 | (2) |      | $ | 8.44 | (2)      |  |  | 1   | %
|Class I butterfat mover(1)        |  |                         | 1.76 | (3) |      |   | 1.95 | (3)      |  |  | (10 | )
|Class II raw skim milk minimum(4) |  |                         | 7.74 | (2) |      |   | 6.90 | (2)      |  |  | 12  |  
|Class II butterfat minimum(4)     |  |                         | 1.72 | (3) |      |   | 2.06 | (3)      |  |  | (17 | )






| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | * | The prices noted in this table are not the prices that we
    actually pay. The minimum prices applicable at any given
    location for Class I raw skim milk or Class I
    butterfat are based on the Class I mover plus a location
    differential. Class II prices noted in the table are
    federal minimum prices, applicable at all locations. Our actual
    cost also includes producer premiums, procurement costs and
    other related charges that vary by location and vendor.



|    |                                                                                                                                             
|--- | --------------------------------------------------------------------------------------------------------------------------------------------
|(1) | We process Class I raw skim milk and butterfat into fluid
    milk products.                                                                
|   
|(2) | Prices are per hundredweight.                                                                                                               
|   
|(3) | Prices are per pound.                                                                                                                       
|   
|(4) | We process Class II raw skim milk and butterfat into
    products such as cottage cheese, creams and creamers, ice cream
    and sour cream.

Cost of Sales


Operating Costs and Expenses


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Operating Income


Other (Income) Expense


Income Taxes







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



10



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|        |                                  
|------- | ---------------------------------
|Item 8. | Consolidated Financial Statements



|                                                                                                                |  |                                                       |     |      |      | 
|--------------------------------------------------------------------------------------------------------------- |  | ----------------------------------------------------- | --- | ---- | ---- | 
|                                                                                                                |  | Page                                                  |    
|                                                                                                                |  |                                                       |    
|Report of Independent Registered Public
    Accounting Firm                                                     |  |                                                       | F-1 |     
|Consolidated Balance Sheets as of
    December 31, 2005 and 2004                                                |  |                                                       | F-2 |     
|Consolidated Statements of Income for the
    years ended December 31, 2005, 2004 and 2003                      |  |                                                       | F-3 |     
|Consolidated Statements of Parents
    Net Investment for the years ended December 31, 2005, 2004
    and 2003 |  |                                                       | F-4 |     
|Consolidated Statements of Cash Flows for
    the years ended December 31, 2005, 2004 and 2003                  |  |                                                       | F-5 |     
|Notes to Consolidated Financial
    Statements:                                                                 |  |                                                       |     |     
|                                                                                                                |  | 1.  Summary of Significant
    Accounting Policies    |     |      | F-6  | 
|                                                                                                                |  | 2.  Acquisitions and Discontinued
    Operations      |     |      | F-9  | 
|                                                                                                                |  | 3.  Inventories                                       |     |      | F-10 | 
|                                                                                                                |  | 4.  Property, Plant and
    Equipment                 |     |      | F-11 | 
|                                                                                                                |  | 5.  Intangible Assets                                 |     |      | F-11 | 
|                                                                                                                |  | 6.  Accounts Payable and Accrued
    Expenses         |     |      | F-12 | 
|                                                                                                                |  | 7.  Income Taxes                                      |     |      | F-13 | 
|                                                                                                                |  | 8.  Long-Term Debt                                    |     |      | F-14 | 
|                                                                                                                |  | 9.  Other Comprehensive Income                        |     |      | F-15 | 
|                                                                                                                |  | 10.  Employee Retirement and
    Profit Sharing Plans |     | F-15 |     
|                                                                                                                |  | 11.  Postretirement Benefits
    Other Than Pensions  |     | F-16 |     
|                                                                                                                |  | 12.  Facility Closing and
    Reorganization Costs    |     | F-18 |     
|                                                                                                                |  | 13.  Supplemental Cash Flow
    Information           |     | F-20 |     
|                                                                                                                |  | 14.  Commitments and
    Contingencies                |     | F-20 |     
|                                                                                                                |  | 15.  Fair Value of Financial
    Instruments          |     | F-21 |     
|                                                                                                                |  | 16.  Geographic Information and
    Major Customers   |     | F-22 |     
|                                                                                                                |  | 17.  Quarterly Results of
    Operations (unaudited)  |     | F-22 |     

11



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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
















DELOITTE &
TOUCHE LLP






F-1



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DEAN HOLDING COMPANY





CONSOLIDATED BALANCE SHEETS


|                                         |                                                                              |                               |           |         |           |  |           |           |           | 
|---------------------------------------- | ---------------------------------------------------------------------------- | ----------------------------- | --------- | ------- | --------- |  | --------- | --------- | --------- | 
|                                         |                                                                              | December 31                   |          
|                                         |                                                                              |                               |          
|                                         |                                                                              | 2005                          |           |         | 2004      | 
|                                         |                                                                              |                               |           |         |           | 
|                                         |                                                                              | (Dollars in thousands)        |          
|ASSETS                                   |                                                                              |                               |           |         |           |  |           |          
|Current assets:                          |                                                                              |                               |           |         |           |  |           |          
|                                         | Cash and cash equivalents                                                    |                               | $         | 16,056  |           |  | $         | 12,490    |          
|                                         | Receivables, net of allowance for doubtful accounts of $6,601
    and $9,500 |                               |           | 283,905 |           |  |           | 261,184   |          
|                                         | Inventories                                                                  |                               |           | 104,488 |           |  |           | 101,265   |          
|                                         | Deferred income taxes                                                        |                               |           | 37,071  |           |  |           | 48,187    |          
|                                         | Prepaid expenses and other current assets                                    |                               |           | 11,157  |           |  |           | 18,754    |          
|                                         |                                                                              |                               |           |         |           | 
|                                         |                                                                              | Total current assets          |           |         | 452,677   |  |           |           | 441,880   | 
|Property, plant and equipment            |                                                                              |                               | 508,963   |         |           |  | 510,513   |          
|Goodwill                                 |                                                                              |                               | 1,080,529 |         |           |  | 1,118,775 |          
|Identifiable intangible and other assets |                                                                              |                               | 195,704   |         |           |  | 204,265   |          
|Assets of discontinued operations        |                                                                              |                               |          |         |           |  | 613,240   |          
|                                         |                                                                              |                               |           |         |           | 
|                                         |                                                                              | Total                         |           | $       | 2,237,873 |  |           | $         | 2,888,673 | 
|                                         |                                                                              |                               |           |         |           | 
|                                        
|LIABILITIES AND PARENTS NET INVESTMENT  |                                                                              |                               |           |         |           |  |           |          
|Current liabilities:                     |                                                                              |                               |           |         |           |  |           |          
|                                         | Accounts payable and accrued expenses                                        |                               | $         | 292,163 |           |  | $         | 288,684   |          
|                                         | Income taxes payable                                                         |                               |           | 5,492   |           |  |           | 4,897     |          
|                                         | Current portion of long-term debt                                            |                               |           | 28      |           |  |           | 99,334    |          
|                                         |                                                                              |                               |           |         |           | 
|                                         |                                                                              | Total current liabilities     |           |         | 297,683   |  |           |           | 392,915   | 
|Long-term debt                           |                                                                              |                               | 757,743   |         |           |  | 754,683   |          
|Deferred income taxes                    |                                                                              |                               | 150,620   |         |           |  | 183,265   |          
|Other long-term liabilities              |                                                                              |                               | 71,079    |         |           |  | 136,095   |          
|Liabilities of discontinued operations   |                                                                              |                               |          |         |           |  | 120,900   |          
|Commitments and contingencies (Note 14)  |                                                                              |                               |           |         |           |  |           |          
|                                         | Parents net investment                                                      |                               |           | 961,322 |           |  |           | 1,316,319 |          
|                                         | Accumulated other comprehensive income (loss)                                |                               |           | (574    | )         |  |           | (15,504   | )        
|                                         |                                                                              |                               |           |         |           | 
|                                         |                                                                              | Total parents net investment |           |         | 960,748   |  |           |           | 1,300,815 | 
|                                         |                                                                              |                               |           |         |           | 
|                                         |                                                                              | Total                         |           | $       | 2,237,873 |  |           | $         | 2,888,673 | 
|                                         |                                                                              |                               |           |         |           | 



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##### Table of Contents



DEAN HOLDING COMPANY





CONSOLIDATED STATEMENTS OF INCOME


|                                                      |                                           |                                    |           |         |         |   |           |         |         |   |           |         |         | 
|----------------------------------------------------- | ----------------------------------------- | ---------------------------------- | --------- | ------- | ------- | - | --------- | ------- | ------- | - | --------- | ------- | ------- | 
|                                                      |                                           | Year Ended December 31             |          
|                                                      |                                           |                                    |          
|                                                      |                                           | 2005                               |           |         | 2004    |   |           | 2003    |        
|                                                      |                                           |                                    |           |         |         |   |           |         |        
|                                                      |                                           | (In thousands)                     |          
|Net sales                                             |                                           | $                                  | 3,698,412 |         |         | $ | 3,633,107 |         |         | $ | 3,192,831 |        
|Cost of sales                                         |                                           |                                    | 2,799,517 |         |         |   | 2,782,222 |         |         |   | 2,398,601 |        
|                                                      |                                           |                                    |           |         |         |   |           |         |        
|Gross profit                                          |                                           |                                    | 898,895   |         |         |   | 850,885   |         |         |   | 794,230   |        
|Operating costs and expenses:                         |                                           |                                    |           |         |         |   |           |         |         |   |           |        
|                                                      | Selling and distribution                  |                                    |           | 532,638 |         |   |           | 510,691 |         |   |           | 460,536 |        
|                                                      | General and administrative                |                                    |           | 117,928 |         |   |           | 121,300 |         |   |           | 117,605 |        
|                                                      | Amortization of intangibles               |                                    |           | 1,121   |         |   |           | 1,223   |         |   |           | 1,696   |        
|                                                      | Facility closing and reorganization costs |                                    |           | 3,170   |         |   |           | 4,445   |         |   |           | 5,919   |        
|                                                      |                                           |                                    |           |         |         |   |           |         |        
|                                                      |                                           | Total operating costs and expenses |           |         | 654,857 |   |           |         | 637,659 |   |           |         | 585,756 | 
|                                                      |                                           |                                    |           |         |         |   |           |         |        
|Operating income                                      |                                           |                                    | 244,038   |         |         |   | 213,226   |         |         |   | 208,474   |        
|Other (income) expense:                               |                                           |                                    |           |         |         |   |           |         |         |   |           |        
|                                                      | Interest expense                          |                                    |           | 50,838  |         |   |           | 54,851  |         |   |           | 55,134  |        
|                                                      | Other income, net                         |                                    |           | (76     | )       |   |           | (2,100  | )       |   |           | (1,814  | )      
|                                                      |                                           |                                    |           |         |         |   |           |         |        
|                                                      |                                           | Total other expense                |           |         | 50,762  |   |           |         | 52,751  |   |           |         | 53,320  | 
|                                                      |                                           |                                    |           |         |         |   |           |         |        
|Income from continuing operations before income taxes |                                           |                                    | 193,276   |         |         |   | 160,475   |         |         |   | 155,154   |        
|Income taxes                                          |                                           |                                    | 74,029    |         |         |   | 62,069    |         |         |   | 58,218    |        
|                                                      |                                           |                                    |           |         |         |   |           |         |        
|Income from continuing operations                     |                                           |                                    | 119,247   |         |         |   | 98,406    |         |         |   | 96,936    |        
|Income from discontinued operations, net of tax       |                                           |                                    | 12,185    |         |         |   | 32,954    |         |         |   | 63,950    |        
|                                                      |                                           |                                    |           |         |         |   |           |         |        
|Income before cumulative effect of accounting change  |                                           |                                    | 131,432   |         |         |   | 131,360   |         |         |   | 160,886   |        
|Cumulative effect of accounting change, net of tax    |                                           |                                    | (686      | )       |         |   |          |         |         |   |          |        
|                                                      |                                           |                                    |           |         |         |   |           |         |        
|Net income                                            |                                           | $                                  | 130,746   |         |         | $ | 131,360   |         |         | $ | 160,886   |        
|                                                      |                                           |                                    |           |         |         |   |           |         |        



F-3



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##### Table of Contents



DEAN HOLDING COMPANY





CONSOLIDATED STATEMENTS OF PARENTS NET INVESTMENT


|                           |                                      |                                      |           |             |               |   |         |              |        |   |               |          |        |   |   |         |        |  
|-------------------------- | ------------------------------------ | ------------------------------------ | --------- | ----------- | ------------- | - | ------- | ------------ | ------ | - | ------------- | -------- | ------ | - | - | ------- | ------ | -
|                           |                                      |                                      |           | Accumulated |               |   |         |              |       
|                           |                                      |                                      |           | Other       |               |   | Total   |              |        |  
|                           |                                      | Parents Net                         |           |             | Comprehensive |   |         | Parents Net |        |   | Comprehensive |         
|                           |                                      | Investment                           |           |             | Income (Loss) |   |         | Investment   |        |   | Income        |         
|                           |                                      |                                      |           |             |               |   |         |              |        |   |               |         
|                           |                                      | (In thousands)                       |          
|Balance, January 1, 2003   |                                      | $                                    | 1,368,128 |             |               | $ | (75     | )            |        | $ | 1,368,053     |          |        |   |   |        
|                           | Net income                           |                                      |           | 160,886     |               |   |         |             |        |   |               | 160,886  |        |   | $ | 160,886 |       
|                           | Activity with parent                 |                                      |           | (179,744    | )             |   |         |              |        |   |               | (179,744 | )      |   |   |        |       
|                           | Other comprehensive income (Note 9): |                                      |           |             |               |   |         |              |        |   |               |          |        |   |   |         |       
|                           | Cumulative translation adjustment    |                                      |           |            |               |   |         | (1,552       | )      |   |               | (1,552   | )      |   |   | (1,552  | )     
|                           |                                      | Minimum pension liability adjustment |           |             |              |   |         |              | (7,655 | ) |               |          | (7,655 | ) |   |         | (7,655 | )
|                           |                                      |                                      |           |             |               |   |         |              |        |   |               |         
|                           | Comprehensive income                 |                                      |           |             |               |   |         |              |        |   |               |          |        |   | $ | 151,679 |       
|                           |                                      |                                      |           |             |               |   |         |              |        |   |               |         
|Balance, December 31, 2003 |                                      |                                      | 1,349,270 |             |               |   | (9,282  | )            |        |   | 1,339,988     |          |        |   |   |        
|                           | Net income                           |                                      |           | 131,360     |               |   |         |              |        |   |               | 131,360  |        |   | $ | 131,360 |       
|                           | Activity from parent                 |                                      |           | (164,311    | )             |   |         |             |        |   |               | (164,311 | )      |   |   |        |       
|                           | Other comprehensive income (Note 9): |                                      |           |             |               |   |         |              |        |   |               |          |        |   |   |         |       
|                           | Cumulative translation adjustment    |                                      |           |            |               |   |         | 696          |        |   |               | 696      |        |   |   | 696     |       
|                           |                                      | Minimum pension liability adjustment |           |             |              |   |         |              | (6,918 | ) |               |          | (6,918 | ) |   |         | (6,918 | )
|                           |                                      |                                      |           |             |               |   |         |              |        |   |               |         
|                           | Comprehensive income                 |                                      |           |             |               |   |         |              |        |   |               |          |        |   | $ | 125,138 |       
|                           |                                      |                                      |           |             |               |   |         |              |        |   |               |         
|Balance, December 31, 2004 |                                      |                                      | 1,316,319 |             |               |   | (15,504 | )            |        |   | 1,300,815     |          |        |   |   |        
|                           | Net income                           |                                      |           | 130,746     |               |   |         |             |        |   |               | 130,746  |        |   | $ | 130,746 |       
|                           | Activity with parent                 |                                      |           | (24,392     | )             |   |         | 14,684       |        |   |               | (9,708   | )      |   |   | 14,684  |       
|                           | Dividend of TreeHouse to Parent      |                                      |           | (461,351    | )             |   |         |             |        |   |               | (461,351 | )      |   |   |         |       
|                           | Other comprehensive income (Note 9): |                                      |           |             |               |   |         |              |        |   |               |          |        |   |   |         |       
|                           | Cumulative translation adjustment    |                                      |           |            |               |   |         | 246          |        |   |               | 246      |        |   |   | 246     |       
|                           |                                      |                                      |           |             |               |   |         |              |        |   |               |         
|                           | Comprehensive income                 |                                      |           |             |               |   |         |              |        |   |               |          |        |   | $ | 145,676 |       
|                           |                                      |                                      |           |             |               |   |         |              |        |   |               |         
|Balance, December 31, 2005 |                                      | $                                    | 961,322   |             |               | $ | (574    | )            |        | $ | 960,748       |          |        |   |   |        
|                           |                                      |                                      |           |             |               |   |         |              |        |   |               |         



F-4



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##### Table of Contents



DEAN HOLDING COMPANY





CONSOLIDATED STATEMENTS OF CASH FLOWS


|                                                 |                                                                                       |                                                                   |                                       |                                              |        |         |          |          |        |         |          |          |        |         |          |  
|------------------------------------------------ | ------------------------------------------------------------------------------------- | ----------------------------------------------------------------- | ------------------------------------- | -------------------------------------------- | ------ | ------- | -------- | -------- | ------ | ------- | -------- | -------- | ------ | ------- | -------- | -
|                                                 |                                                                                       | Year Ended December 31                                            |                                      
|                                                 |                                                                                       |                                                                   |                                      
|                                                 |                                                                                       | 2005                                                              |                                       |                                              | 2004   |         |          | 2003     |       
|                                                 |                                                                                       |                                                                   |                                       |                                              |        |         |          |          |       
|                                                 |                                                                                       | (In thousands)                                                    |                                      
|Cash flows from operating activities:            |                                                                                       |                                                                   |                                       |                                              |        |         |          |          |        |         |          |         
|                                                 | Net income                                                                            |                                                                   | $                                     | 130,746                                      |        |         | $        | 131,360  |        |         | $        | 160,886  |       
|                                                 | Income from discontinued operations                                                   |                                                                   |                                       | (12,185                                      | )      |         |          | (32,954  | )      |         |          | (63,950  | )     
|                                                 | Adjustments to reconcile net income to net cash provided by
    operating activities: |                                                                   |                                       |                                              |        |         |          |          |        |         |          |          |       
|                                                 |                                                                                       | Depreciation and amortization                                     |                                       |                                              | 73,127 |         |          |          | 68,058 |         |          |          | 58,491 |        
|                                                 |                                                                                       | (Gain) loss on disposition of assets                              |                                       |                                              | 72     |         |          |          | (343   | )       |          |          | (13    | )      
|                                                 |                                                                                       | Cumulative effect of accounting change                            |                                       |                                              | 686    |         |          |          |       |         |          |          |       |        
|                                                 |                                                                                       | Write-down of impaired assets                                     |                                       |                                              | 167    |         |          |          | 594    |         |          |          |       |        
|                                                 |                                                                                       | Deferred income taxes                                             |                                       |                                              | 13,906 |         |          |          | 33,512 |         |          |          | 49,116 |        
|                                                 |                                                                                       | Other                                                             |                                       |                                              | 2,249  |         |          |          | 982    |         |          |          | (4,759 | )      
|                                                 |                                                                                       | Changes in operating assets and liabilities, net of acquisitions: |                                       |                                              |        |         |          |          |        |         |          |          |        |        
|                                                 |                                                                                       |                                                                   | Receivables                           |                                              |        | (15,905 | )        |          |        | (14,346 | )        |          |        | (21,769 | )       
|                                                 |                                                                                       |                                                                   | Inventories                           |                                              |        | (3,373  | )        |          |        | (7,743  | )        |          |        | (6,373  | )       
|                                                 |                                                                                       |                                                                   | Prepaid expenses and other assets     |                                              |        | 11,822  |          |          |        | (3,117  | )        |          |        | 25,978  |         
|                                                 |                                                                                       |                                                                   | Accounts payable and accrued expenses |                                              |        | (23,274 | )        |          |        | (39,548 | )        |          |        | (34,848 | )       
|                                                 |                                                                                       |                                                                   | Income taxes payable                  |                                              |        | 995     |          |          |        | (16,790 | )        |          |        | (21,512 | )       
|                                                 |                                                                                       |                                                                   |                                       |                                              |        |         |          |          |       
|                                                 |                                                                                       |                                                                   |                                       | Net cash provided by continuing operations   |        |         | 179,033  |          |        |         | 119,665  |          |        |         | 141,247  |  
|                                                 |                                                                                       |                                                                   |                                       | Net cash provided by discontinued operations |        |         | 31,496   |          |        |         | 89,713   |          |        |         | 76,968   |  
|                                                 |                                                                                       |                                                                   |                                       |                                              |        |         |          |          |       
|                                                 |                                                                                       |                                                                   |                                       | Net cash provided by operating activities    |        |         | 210,529  |          |        |         | 209,378  |          |        |         | 218,215  |  
|                                                 |                                                                                       |                                                                   |                                       |                                              |        |         |          |          |       
|Cash flows from investing activities:            |                                                                                       |                                                                   |                                       |                                              |        |         |          |          |        |         |          |         
|                                                 | Additions to property, plant and equipment                                            |                                                                   |                                       | (61,697                                      | )      |         |          | (60,570  | )      |         |          | (76,611  | )     
|                                                 | Cash out flows for acquisitions and investments                                       |                                                                   |                                       |                                             |        |         |          | (28,890  | )      |         |          | (1,187   | )     
|                                                 | Proceeds from the sale of fixed assets                                                |                                                                   |                                       | 897                                          |        |         |          | 4,925    |        |         |          | 3,335    |       
|                                                 | Net proceeds from divestitures                                                        |                                                                   |                                       |                                             |        |         |          | (96      | )      |         |          | (305     | )     
|                                                 |                                                                                       |                                                                   |                                       |                                              |        |         |          |          |       
|                                                 |                                                                                       |                                                                   |                                       | Net cash used in continuing operations       |        |         | (60,800  | )        |        |         | (84,631  | )        |        |         | (74,768  | )
|                                                 |                                                                                       |                                                                   |                                       | Net cash used in discontinued operations     |        |         | (7,631   | )        |        |         | (22,922  | )        |        |         | (30,782  | )
|                                                 |                                                                                       |                                                                   |                                       |                                              |        |         |          |          |       
|                                                 |                                                                                       |                                                                   |                                       | Net cash used in investing activities        |        |         | (68,431  | )        |        |         | (107,553 | )        |        |         | (105,550 | )
|                                                 |                                                                                       |                                                                   |                                       |                                              |        |         |          |          |       
|Cash flows from financing activities:            |                                                                                       |                                                                   |                                       |                                              |        |         |          |          |        |         |          |         
|                                                 | Proceeds from issuance of debt                                                        |                                                                   |                                       | 1,109                                        |        |         |          | 63,819   |        |         |          | 71,979   |       
|                                                 | Repayment of debt                                                                     |                                                                   |                                       | (101,153                                     | )      |         |          | (8,035   | )      |         |          | (5,991   | )     
|                                                 | Additional investment from parent                                                     |                                                                   |                                       |                                             |        |         |          | 21,504   |        |         |          |         |       
|                                                 | Distribution to parent                                                                |                                                                   |                                       | (49,641                                      | )      |         |          | (186,522 | )      |         |          | (192,320 | )     
|                                                 |                                                                                       |                                                                   |                                       |                                              |        |         |          |          |       
|                                                 |                                                                                       |                                                                   |                                       | Net cash used in continuing operations       |        |         | (149,685 | )        |        |         | (109,234 | )        |        |         | (126,332 | )
|                                                 |                                                                                       |                                                                   |                                       | Net cash used in discontinued operations     |        |         | 11,153   |          |        |         | (2,958   | )        |        |         | 12,267   |  
|                                                 |                                                                                       |                                                                   |                                       |                                              |        |         |          |          |       
|                                                 |                                                                                       |                                                                   |                                       | Net cash used in financing activities        |        |         | (138,532 | )        |        |         | (112,192 | )        |        |         | (114,065 | )
|                                                 |                                                                                       |                                                                   |                                       |                                              |        |         |          |          |       
|Increase (decrease) in cash and cash equivalents |                                                                                       |                                                                   | 3,566                                 |                                              |        |         | (10,367  | )        |        |         | (1,400   | )       
|Cash and cash equivalents, beginning of period   |                                                                                       |                                                                   | 12,490                                |                                              |        |         | 22,857   |          |        |         | 24,257   |         
|                                                 |                                                                                       |                                                                   |                                       |                                              |        |         |          |          |       
|Cash and cash equivalents, end of period         |                                                                                       | $                                                                 | 16,056                                |                                              |        | $       | 12,490   |          |        | $       | 22,857   |         
|                                                 |                                                                                       |                                                                   |                                       |                                              |        |         |          |          |       



F-5



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##### Table of Contents



DEAN HOLDING COMPANY





NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


Years Ended December 31, 2005, 2004 and 2003







|   |                                           
|-- | ------------------------------------------
|1. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Our Business


Basis of Presentations






Use of Estimates


Cash Equivalents


Inventories first-in,


Property, Plant and Equipment


|                           |  |              
|-------------------------- |  | -------------
|Asset                      |  | Useful Life  
|                           |  |              
|Buildings and improvements |  | 7 to 40 years
|Machinery and equipment    |  | 3 to 20 years

F-6



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##### Table of Contents



DEAN HOLDING COMPANY


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




Intangible and Other Assets


|                          |  |                                                      
|------------------------- |  | -----------------------------------------------------
|Asset                     |  | Useful Life                                          
|                          |  |                                                      
|Customer relationships    |  | Straight-line method over 5 to 15 years              
|Customer supply contracts |  | Straight-line method over the terms of the agreements
|Noncompetition agreements |  | Straight-line method over the terms of the agreements



Foreign Currency Translation


Sales Recognition and Accounts Receivable


Income Taxes




Advertising Expense


F-7



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##### Table of Contents



DEAN HOLDING COMPANY


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




Shipping and Handling Fees


Insurance Accruals


Facility Closing and Reorganization Costs


Comprehensive Income


Recently Adopted Accounting Pronouncements


Recently Issued Accounting Pronouncements




F-8



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##### Table of Contents



DEAN HOLDING COMPANY


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






Reclassifications







|   |                                         
|-- | ----------------------------------------
|2. | ACQUISITIONS AND DISCONTINUED OPERATIONS



| |        
| | -------
| | General





| |                  
| | -----------------
| | 2005 Acquisitions





| |                  
| | -----------------
| | 2004 Acquisitions

Ross Swiss Dairies


Other




| |                  
| | -----------------
| | 2003 Acquisitions





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



F-9



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##### Table of Contents



DEAN HOLDING COMPANY


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|                    |  |                        |         |  |      |   |         |      |  |   |         | 
|------------------- |  | ---------------------- | ------- |  | ---- | - | ------- | ---- |  | - | ------- | 
|                    |  | Year Ended December 31 |        
|                    |  |                        |        
|                    |  | 2005                   |         |  | 2004 |   |         | 2003 | 
|                    |  |                        |         |  |      |   |         |      | 
|                    |  | (In thousands)         |        
|Net sales           |  | $                      | 332,299 |  |      | $ | 676,768 |      |  | $ | 684,207 | 
|Income before taxes |  |                        | 24,692  |  |      |   | 52,026  |      |  |   | 100,072 | 



|                         |  |   |         | 
|------------------------ |  | - | ------- | 
|Current assets           |  | $ | 158,964 | 
|Goodwill                 |  |   | 306,473 | 
|Other non-current assets |  |   | 147,803 | 
|Current liabilities      |  |   | 56,252  | 
|Non-current liabilities  |  |   | 64,648  | 








|   |            
|-- | -----------
|3. | INVENTORIES

|                           |       |                |        |         |      |   |        |         | 
|-------------------------- | ----- | -------------- | ------ | ------- | ---- | - | ------ | ------- | 
|                           |       | December 31    |       
|                           |       |                |       
|                           |       | 2005           |        |         | 2004 |  
|                           |       |                |        |         |      |  
|                           |       | (In thousands) |       
|Raw materials and supplies |       | $              | 34,530 |         |      | $ | 33,175 |        
|Finished goods             |       |                | 69,958 |         |      |   | 68,090 |        
|                           |       |                |        |         |      |  
|                           | Total |                | $      | 104,488 |      |   | $      | 101,265 | 
|                           |       |                |        |         |      |  

F-10



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##### Table of Contents



DEAN HOLDING COMPANY


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)







|   |                              
|-- | -----------------------------
|4. | PROPERTY, PLANT AND EQUIPMENT

|                              |       |                |          |         |      |   |          |         | 
|----------------------------- | ----- | -------------- | -------- | ------- | ---- | - | -------- | ------- | 
|                              |       | December 31    |         
|                              |       |                |         
|                              |       | 2005           |          |         | 2004 |  
|                              |       |                |          |         |      |  
|                              |       | (In thousands) |         
|Land                          |       | $              | 47,873   |         |      | $ | 46,572   |        
|Buildings and improvements    |       |                | 212,806  |         |      |   | 216,029  |        
|Machinery and equipment       |       |                | 477,468  |         |      |   | 410,043  |        
|                              |       |                |          |         |      |  
|                              |       |                | 738,147  |         |      |   | 672,644  |        
|Less accumulated depreciation |       |                | (229,184 | )       |      |   | (162,131 | )      
|                              |       |                |          |         |      |  
|                              | Total |                | $        | 508,963 |      |   | $        | 510,513 | 
|                              |       |                |          |         |      |  










|   |                  
|-- | -----------------
|5. | INTANGIBLE ASSETS



|                                |  |   |           |  
|------------------------------- |  | - | --------- | -
|Balance at December 31, 2003    |  | $ | 1,109,921 |  
|Purchase accounting adjustments |  |   | (15,295   | )
|Acquisitions                    |  |   | 24,149    |  
|                                |  |   |          
|Balance at December 31, 2004    |  |   | 1,118,775 |  
|Purchase accounting adjustments |  |   | (39,509   | )
|Acquisitions                    |  |   | 1,263     |  
|                                |  |   |          
|Balance at December 31, 2005    |  | $ | 1,080,529 |  
|                                |  |   |          



F-11



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##### Table of Contents



DEAN HOLDING COMPANY


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                         |                         |                |   |         |              |  |     |          |   |       |          |         |  |              |     |         |          |  |   |        |   |  |   |         | 
|---------------------------------------- | ----------------------- | -------------- | - | ------- | ------------ |  | --- | -------- | - | ----- | -------- | ------- |  | ------------ | --- | ------- | -------- |  | - | ------ | - |  | - | ------- | 
|                                         |                         | December 31    |  
|                                         |                         |                |  
|                                         |                         | 2005           |   |         | 2004         | 
|                                         |                         |                |   |         |              | 
|                                         |                         | Gross          |   |         |              |  | Net |          |   | Gross |          |         |  |              | Net |        
|                                         |                         | Carrying       |   |         | Accumulated  |  |     | Carrying |   |       | Carrying |         |  | Accumulated  |     |         | Carrying | 
|                                         |                         | Amount         |   |         | Amortization |  |     | Amount   |   |       | Amount   |         |  | Amortization |     |         | Amount   | 
|                                         |                         |                |   |         |              |  |     |          |   |       |          |         |  |              |     |         |          | 
|                                         |                         | (In thousands) |  
|Intangible assets with indefinite lives: |                         |                |   |         |              |  |     |          |   |       |          |         |  |              |     |         |          |  |   |        |   |  |   |        
|                                         | Trademarks              |                | $ | 179,310 |              |  | $   |         |   |       | $        | 179,310 |  |              | $   | 179,310 |          |  | $ |       |   |  | $ | 179,310 | 
|Intangible assets with finite lives:     |                         |                |   |         |              |  |     |          |   |       |          |         |  |              |     |         |          |  |   |        |   |  |   |        
|                                         | Customer-related        |                |   | 19,929  |              |  |     | (8,015   | ) |       |          | 11,914  |  |              |     | 18,089  |          |  |   | (5,929 | ) |  |   | 12,160  | 
|                                         |                         |                |   |         |              |  |     |          |   |       |          |         |  |              |     |         |          | 
|                                         | Total other intangibles |                | $ | 199,239 |              |  | $   | (8,015   | ) |       | $        | 191,224 |  |              | $   | 197,399 |          |  | $ | (5,929 | ) |  | $ | 191,470 | 
|                                         |                         |                |   |         |              |  |     |          |   |       |          |         |  |              |     |         |          | 
















|   |                                      
|-- | -------------------------------------
|6. | ACCOUNTS PAYABLE AND ACCRUED EXPENSES

|                                                                      |       |                |         |         |      |   |         |         | 
|--------------------------------------------------------------------- | ----- | -------------- | ------- | ------- | ---- | - | ------- | ------- | 
|                                                                      |       | December 31    |        
|                                                                      |       |                |        
|                                                                      |       | 2005           |         |         | 2004 |  
|                                                                      |       |                |         |         |      |  
|                                                                      |       | (In thousands) |        
|Accounts payable                                                      |       | $              | 165,403 |         |      | $ | 165,103 |        
|Payroll and benefits                                                  |       |                | 49,746  |         |      |   | 53,973  |        
|Health insurance, workers compensation and other insurance
    costs |       |                | 25,850  |         |      |   | 13,602  |        
|Other accrued liabilities                                             |       |                | 51,164  |         |      |   | 56,006  |        
|                                                                      |       |                |         |         |      |  
|                                                                      | Total |                | $       | 292,163 |      |   | $       | 288,684 | 
|                                                                      |       |                |         |         |      |  

F-12



---



##### Table of Contents



DEAN HOLDING COMPANY


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)







|   |             
|-- | ------------
|7. | INCOME TAXES



|                       |                   |                        |        |        |         |  |        |         |        |  |        |        |        | 
|---------------------- | ----------------- | ---------------------- | ------ | ------ | ------- |  | ------ | ------- | ------ |  | ------ | ------ | ------ | 
|                       |                   | Year Ended December 31 |       
|                       |                   |                        |       
|                       |                   | 2005(1)                |        |        | 2004(2) |  |        | 2003(3) |       
|                       |                   |                        |        |        |         |  |        |         |       
|                       |                   | (In thousands)         |       
|Current taxes payable: |                   |                        |        |        |         |  |        |         |        |  |        |       
|                       | Federal           |                        | $      | 51,979 |         |  | $      | 20,416  |        |  | $      | (3,737 | )     
|                       | State             |                        |        | 8,931  |         |  |        | 5,055   |        |  |        | 3,937  |       
|                       | Foreign and other |                        |        | 58     |         |  |        | 649     |        |  |        | 408    |       
|Deferred income taxes  |                   |                        | 13,061 |        |         |  | 35,949 |         |        |  | 57,610 |       
|                       |                   |                        |        |        |         |  |        |         |       
|                       |                   | Total                  |        | $      | 74,029  |  |        | $       | 62,069 |  |        | $      | 58,218 | 
|                       |                   |                        |        |        |         |  |        |         |       






|    |                                                                                                                                                                        
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Excludes $12.1 million income tax expense related to
    discontinued operations and $400,000 income tax benefit related
    to cumulative effect of accounting change.
|   
|(2) | Excludes $19.1 million income tax expense related to
    discontinued operations.                                                                                      
|   
|(3) | Excludes $36.1 million income tax expense related to
    discontinued operations.                                                                                      



|                               |       |                        |        |        |      |   |        |        |  |   |        |        | 
|------------------------------ | ----- | ---------------------- | ------ | ------ | ---- | - | ------ | ------ |  | - | ------ | ------ | 
|                               |       | Year Ended December 31 |       
|                               |       |                        |       
|                               |       | 2005                   |        |        | 2004 |   |        | 2003   | 
|                               |       |                        |        |        |      |   |        |        | 
|                               |       | (In thousands)         |       
|Tax expense at statutory rates |       | $                      | 67,647 |        |      | $ | 56,016 |        |  | $ | 53,687 |       
|State income taxes             |       |                        | 5,836  |        |      |   | 5,222  |        |  |   | 4,915  |       
|Change in valuation allowance  |       |                        | 100    |        |      |   | 381    |        |  |   | 263    |       
|Other                          |       |                        | 446    |        |      |   | 450    |        |  |   | (647   | )     
|                               |       |                        |        |        |      |   |        |        | 
|                               | Total |                        | $      | 74,029 |      |   | $      | 62,069 |  |   | $      | 58,218 | 
|                               |       |                        |        |        |      |   |        |        | 



|                                 |                                  |                                   |        |          |          |   |        |          |          |  
|-------------------------------- | -------------------------------- | --------------------------------- | ------ | -------- | -------- | - | ------ | -------- | -------- | -
|                                 |                                  | December 31                       |       
|                                 |                                  |                                   |       
|                                 |                                  | 2005                              |        |          | 2004     |  
|                                 |                                  |                                   |        |          |          |  
|                                 |                                  | (In thousands)                    |       
|Deferred income tax assets:      |                                  |                                   |        |          |          |   |        |         
|                                 | Net operating loss carryforwards |                                   | $      | 4,491    |          |   | $      | 4,287    |         
|                                 | Asset valuation reserves         |                                   |        | 3,046    |          |   |        | 4,117    |         
|                                 | Accrued liabilities              |                                   |        | 45,342   |          |   |        | 56,048   |         
|                                 | State and foreign credits        |                                   |        | 2,652    |          |   |        | 2,964    |         
|                                 | Other                            |                                   |        | (60      | )        |   |        | 133      |         
|                                 |                                  |                                   |        |          |          |  
|                                 |                                  |                                   | 55,471 |          |          |   | 67,549 |         
|Deferred income tax liabilities: |                                  |                                   |        |          |          |   |        |         
|                                 | Depreciation and amortization    |                                   |        | (165,557 | )        |   |        | (199,264 | )       
|                                 | Valuation allowances             |                                   |        | (3,463   | )        |   |        | (3,363   | )       
|                                 |                                  |                                   |        |          |          |  
|                                 |                                  | Net deferred income tax liability |        | $        | (113,549 | ) |        | $        | (135,078 | )
|                                 |                                  |                                   |        |          |          |  

F-13



---



##### Table of Contents



DEAN HOLDING COMPANY


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                        |       |                |          |          |      |   |          |          |  
|----------------------- | ----- | -------------- | -------- | -------- | ---- | - | -------- | -------- | -
|                        |       | December 31    |         
|                        |       |                |         
|                        |       | 2005           |          |          | 2004 |  
|                        |       |                |          |          |      |  
|                        |       | (In thousands) |         
|Current assets          |       | $              | 37,071   |          |      | $ | 48,187   |         
|Non-current liabilities |       |                | (150,620 | )        |      |   | (183,265 | )       
|                        |       |                |          |          |      |  
|                        | Total |                | $        | (113,549 | )    |   | $        | (135,078 | )
|                        |       |                |          |          |      |  










|   |               
|-- | --------------
|8. | LONG-TERM DEBT

|                                           |                         |                        |         |         |          |  |       |             |  |   |          |         |  |  |       |   | 
|------------------------------------------ | ----------------------- | ---------------------- | ------- | ------- | -------- |  | ----- | ----------- |  | - | -------- | ------- |  |  | ----- | - | 
|                                           |                         | December 31            |        
|                                           |                         |                        |        
|                                           |                         | 2005                   |         |         | 2004     | 
|                                           |                         |                        |         |         |          | 
|                                           |                         | Amount                 |         |         | Interest |  |       | Amount      |  |   | Interest |        
|                                           |                         | Outstanding            |         |         | Rate     |  |       | Outstanding |  |   | Rate     |        
|                                           |                         |                        |         |         |          |  |       |             |  |   |          |        
|                                           |                         | (Dollars in thousands) |        
|$250 million senior notes maturing in 2007 |                         | $                      | 250,198 |         |          |  | 8.150 | %           |  | $ | 250,304  |         |  |  | 8.150 | %
|$200 million senior notes maturing in 2009 |                         |                        | 190,192 |         |          |  | 6.625 |             |  |   | 187,982  |         |  |  | 6.625 |  
|$150 million senior notes maturing in 2017 |                         |                        | 128,103 |         |          |  | 6.900 |             |  |   | 127,102  |         |  |  | 6.900 |  
|$100 million senior notes maturing in 2005 |                         |                        |        |         |          |  |       |             |  |   | 99,308   |         |  |  | 6.750 |  
|Receivables-backed facility                |                         |                        | 189,168 |         |          |  | 4.600 |             |  |   | 189,185  |         |  |  | 2.830 |  
|Other                                      |                         |                        | 110     |         |          |  |       |             |  |   | 136      |         |  |  |       |  
|                                           |                         |                        |         |         |          |  |       |             |  |   |          |        
|                                           | Total                   |                        |         | 757,771 |          |  |       |             |  |   |          | 854,017 |  |  |       |   | 
|Less current portion                       |                         |                        | (28     | )       |          |  |       |             |  |   | (99,334  | )       |  |  |       |  
|                                           |                         |                        |         |         |          |  |       |             |  |   |          |        
|                                           | Total long-term portion |                        | $       | 757,743 |          |  |       |             |  |   | $        | 754,683 |  |  |       |   | 
|                                           |                         |                        |         |         |          |  |       |             |  |   |          |        



|           |                                |   |         |         |  
|---------- | ------------------------------ | - | ------- | ------- | -
|2006       |                                | $ | 28      |        
|2007       |                                |   | 250,030 |        
|2008       |                                |   | 189,177 |        
|2009       |                                |   | 200,010 |        
|2010       |                                |   | 10      |        
|Thereafter |                                |   | 150,023 |        
|           |                                |   |        
|           | Subtotal                       |   |         | 789,278 |  
|           | Less discounts on senior notes |   |         | (31,507 | )
|           |                                |   |        
|           | Total outstanding debt         |   | $       | 757,771 |  
|           |                                |   |        

Senior Notes


F-14



---



##### Table of Contents



DEAN HOLDING COMPANY


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




Receivables-Backed Facility


Other


Letters of Credit







|   |                           
|-- | --------------------------
|9. | OTHER COMPREHENSIVE INCOME



|                                                         |  |                |         |     |           |   |        |          |  |   |         |  
|-------------------------------------------------------- |  | -------------- | ------- | --- | --------- | - | ------ | -------- |  | - | ------- | -
|                                                         |  |                |         | Tax |           |   |       
|                                                         |  | Pre-Tax        |         |     | Benefit   |   |        |         
|                                                         |  | Loss           |         |     | (Expense) |   |        | Net Loss | 
|                                                         |  |                |         |     |           |   |        |          | 
|                                                         |  | (In thousands) |        
|Accumulated other comprehensive income December 31, 2003 |  | $              | (14,046 | )   |           | $ | 4,764  |          |  | $ | (9,282  | )
|Cumulative translation adjustment                        |  |                | 696     |     |           |   |       |          |  |   | 696     |  
|Minimum pension liability adjustment                     |  |                | (11,166 | )   |           |   | 4,248  |          |  |   | (6,918  | )
|                                                         |  |                |         |     |           |   |        |          | 
|Accumulated other comprehensive income December 31, 2004 |  |                | (24,516 | )   |           |   | 9,012  |          |  |   | (15,504 | )
|Cumulative translation adjustment                        |  |                | 246     |     |           |   |       |          |  |   | 246     |  
|Transfer to parent                                       |  |                | 23,708  |     |           |   | (9,024 | )        |  |   | 14,684  |  
|                                                         |  |                |         |     |           |   |        |          | 
|Accumulated other comprehensive income December 31, 2005 |  | $              | (562    | )   |           | $ | (12    | )        |  | $ | (574    | )
|                                                         |  |                |         |     |           |   |        |          | 






|    |                                             
|--- | --------------------------------------------
|10. | EMPLOYEE RETIREMENT AND PROFIT SHARING PLANS



F-15



---



##### Table of Contents



DEAN HOLDING COMPANY


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                               |       |                        |        |        |      |   |        |        |  |   |        |        | 
|---------------------------------------------- | ----- | ---------------------- | ------ | ------ | ---- | - | ------ | ------ |  | - | ------ | ------ | 
|                                               |       | Year Ended December 31 |       
|                                               |       |                        |       
|                                               |       | 2005                   |        |        | 2004 |   |        | 2003   | 
|                                               |       |                        |        |        |      |   |        |        | 
|                                               |       | (In thousands)         |       
|Defined benefit plans                          |       | $                      | 6,610  |        |      | $ | 5,184  |        |  | $ | 8,053  |       
|Defined contribution plans                     |       |                        | 7,783  |        |      |   | 6,707  |        |  |   | 6,206  |       
|Multi-employer pension and certain union plans |       |                        | 11,702 |        |      |   | 11,687 |        |  |   | 12,745 |       
|                                               |       |                        |        |        |      |   |        |        | 
|                                               | Total |                        | $      | 26,095 |      |   | $      | 23,578 |  |   | $      | 27,004 | 
|                                               |       |                        |        |        |      |   |        |        | 

Defined Benefit Plans




Defined Contribution Plans


Multi-Employer Pension and Certain Union
Plans







|    |                                            
|--- | -------------------------------------------
|11. | POSTRETIREMENT BENEFITS OTHER THAN PENSIONS



F-16



---



##### Table of Contents



DEAN HOLDING COMPANY


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                         |                       |                |         |        |      |   |         |        |  
|---------------------------------------- | --------------------- | -------------- | ------- | ------ | ---- | - | ------- | ------ | -
|                                         |                       | December 31    |        
|                                         |                       |                |        
|                                         |                       | 2005           |         |        | 2004 |  
|                                         |                       |                |         |        |      |  
|                                         |                       | (In thousands) |        
|Change in benefit obligation:            |                       |                |         |        |      |   |         |       
|Benefit obligation at beginning of year  |                       | $              | 15,531  |        |      | $ | 13,889  |       
|                                         | Service cost          |                |         | 952    |      |   |         | 663    |  
|                                         | Interest cost         |                |         | 835    |      |   |         | 855    |  
|                                         | Actuarial loss        |                |         | 4,474  |      |   |         | 1,879  |  
|                                         | Benefits paid         |                |         | (1,956 | )    |   |         | (1,755 | )
|                                         |                       |                |         |        |      |  
|Benefit obligation at end of year        |                       |                | 19,836  |        |      |   | 15,531  |       
|Fair value of plan assets at end of year |                       |                |        |        |      |   |        |       
|                                         |                       |                |         |        |      |  
|Funded status                            |                       |                | (19,836 | )      |      |   | (15,531 | )     
|                                         | Unrecognized net loss |                |         | 10,045 |      |   |         | 5,907  |  
|                                         |                       |                |         |        |      |  
|Net amount recognized                    |                       | $              | (9,791  | )      |      | $ | (9,624  | )     
|                                         |                       |                |         |        |      |  



|                       |                                   |             |      |       |      |  |      |       |  
|---------------------- | --------------------------------- | ----------- | ---- | ----- | ---- |  | ---- | ----- | -
|                       |                                   | December 31 |     
|                       |                                   |             |     
|                       |                                   | 2005        |      |       | 2004 | 
|                       |                                   |             |      |       |      | 
|Health care inflation: |                                   |             |      |       |      |  |      |      
|                       | Initial rate                      |             |      | 12.00 | %    |  |      | 10.00 | %
|                       | Ultimate rate                     |             |      | 5.00  | %    |  |      | 5.00  | %
|                       | Year of ultimate rate achievement |             |      | 2010  |      |  |      | 2009  |  
|Discount rate          |                                   |             | 5.75 | %     |      |  | 5.75 | %    



|                                         |                           |                |   |       |      |  |   |       |  |  |   |       | 
|---------------------------------------- | ------------------------- | -------------- | - | ----- | ---- |  | - | ----- |  |  | - | ----- | 
|                                         |                           | December 31    |  
|                                         |                           |                |  
|                                         |                           | 2005           |   |       | 2004 |  |   | 2003  | 
|                                         |                           |                |   |       |      |  |   |       | 
|                                         |                           | (In thousands) |  
|Components of net periodic benefit cost: |                           |                |   |       |      |  |   |       |  |  |   |      
|                                         | Service and interest cost |                | $ | 1,787 |      |  | $ | 1,518 |  |  | $ | 1,478 | 
|Amortizations:                           |                           |                |   |       |      |  |   |       |  |  |   |      
|                                         | Unrecognized net loss     |                |   | 257   |      |  |   | 228   |  |  |   | 73    | 
|                                         |                           |                |   |       |      |  |   |       | 
|                                         | Net periodic benefit cost |                | $ | 2,044 |      |  | $ | 1,746 |  |  | $ | 1,551 | 
|                                         |                           |                |   |       |      |  |   |       | 



|                                                        |  |                |       |  |                |   |        |  
|------------------------------------------------------- |  | -------------- | ----- |  | -------------- | - | ------ | -
|                                                        |  | 1-Percentage-  |       |  | 1-Percentage-  |  
|                                                        |  | Point Increase |       |  | Point Decrease |  
|                                                        |  |                |       |  |                |  
|                                                        |  | (In thousands) |      
|Effect on total of service and interest cost components |  | $              | 140   |  |                | $ | (125   | )
|Effect on postretirement obligation                     |  |                | 1,299 |  |                |   | (1,177 | )

F-17



---



##### Table of Contents



DEAN HOLDING COMPANY


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                |  |   |              | 
|--------------- |  | - | ------------ | 
|2006            |  | $ | 1.9 million  | 
|2007            |  |   | 2.0 million  | 
|2008            |  |   | 2.1 million  | 
|2009            |  |   | 2.3 million  | 
|2010            |  |   | 2.4 million  | 
|Next five years |  |   | 13.6 million | 






|    |                                          
|--- | -----------------------------------------
|12. | FACILITY CLOSING AND REORGANIZATION COSTS

Facility Closing and Reorganization Costs






| |   |                                                                                                      
| | - | -----------------------------------------------------------------------------------------------------
| |  | The closing of a manufacturing facility in Albuquerque, New
    Mexico;                              
|
| |  | Consolidation of certain administrative functions; and                                               
|
| |  | Previously announced plans, including closing a manufacturing
    facility in South Gate, California.









| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Workforce reductions as a result of facility closings, facility
    reorganizations and consolidation of administrative functions;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|
| |  | Shutdown costs, including those costs that are necessary to
    prepare abandoned facilities for closure;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|
| |  | Costs incurred after shutdown such as lease obligations or
    termination costs, utilities and property taxes;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|
| |  | Write-downs of property, plant and equipment and other assets,
    primarily for asset impairments as a result of facilities that
    are no longer used in operations. The impairments relate
    primarily to owned buildings, land and equipment at the
    facilities, which are written down to their estimated fair value
    and held for sale. The effect of suspending depreciation on the
    buildings and equipment related to the closed facilities was not
    significant. The carrying value of closed facilities and related
    equipment at December 31, 2005 was approximately $629,000.
    We are marketing these properties for sale.



F-18



---



##### Table of Contents



DEAN HOLDING COMPANY


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                  |                                  |                |   |       |         |   |       |          |              |  |      |        |   |         |   |              |          |   |       |       |  |  |   |        |   |  |   |     | 
|----------------- | -------------------------------- | -------------- | - | ----- | ------- | - | ----- | -------- | ------------ |  | ---- | ------ | - | ------- | - | ------------ | -------- | - | ----- | ----- |  |  | - | ------ | - |  | - | --- | 
|                  |                                  | Accrued        |   |       |         |   |       |          | Accrued      |  |      |        |   |         |   | Accrued      |         
|                  |                                  | Charges at     |   |       |         |   |       |          | Charges at   |  |      |        |   |         |   | Charges at   |         
|                  |                                  | December 31,   |   |       |         |   |       |          | December 31, |  |      |        |   |         |   | December 31, |         
|                  |                                  | 2003           |   |       | Charges |   |       | Payments |              |  | 2004 |        |   | Charges |   |              | Payments |   |       | 2005  | 
|                  |                                  |                |   |       |         |   |       |          |              |  |      |        |   |         |   |              |          |   |       |       | 
|                  |                                  | (In thousands) |  
|Cash charges:     |                                  |                |   |       |         |   |       |          |              |  |      |        |   |         |   |              |          |   |       |       |  |  |   |        |   |  |   |    
|                  | Workforce reduction costs        |                | $ | 3,547 |         |   | $     | (420     | )            |  | $    | (2,861 | ) |         | $ | 266          |          |   | $     | 1,424 |  |  | $ | (1,241 | ) |  | $ | 449 | 
|                  | Shutdown costs                   |                |   |      |         |   |       | 2,302    |              |  |      | (2,302 | ) |         |   |             |          |   |       | 472   |  |  |   | (472   | ) |  |   |    | 
|                  | Lease obligations after shutdown |                |   |      |         |   |       | 409      |              |  |      | (334   | ) |         |   | 75           |          |   |       | 301   |  |  |   | (318   | ) |  |   | 58  | 
|                  | Other                            |                |   |       |         |   |       | 1,560    |              |  |      | (1,560 | ) |         |   |             |          |   |       | 806   |  |  |   | (806   | ) |  |   |    | 
|                  |                                  |                |   |       |         |   |       |          |              |  |      |        |   |         |   |              |          |   |       |       | 
|                  | Subtotal                         |                | $ | 3,547 |         |   | $     | 3,851    |              |  | $    | (7,057 | ) |         | $ | 341          |          |   | $     | 3,003 |  |  | $ | (2,837 | ) |  | $ | 507 | 
|                  |                                  |                |   |       |         |   |       |          |              |  |      |        |   |         |   |              |          |   |       |       | 
|Non cash charges: |                                  |                |   |       |         |   |       |          |              |  |      |        |   |         |   |              |          |   |       |       |  |  |   |        |   |  |   |    
|                  | Write down of assets             |                |   |       |         |   |       | 594      |              |  |      |        |   |         |   |              |          |   |       | 167   |  |  |   |        |   |  |   |     | 
|                  |                                  |                |   |       |         |   |       |          |              |  |      |        |   |         |   |              |          |   |       |       | 
|Total charges     |                                  |                |   |       |         | $ | 4,445 |          |              |  |      |        |   |         |   |              |          | $ | 3,170 |       |  |  |   |        |   |  |   |    
|                  |                                  |                |   |       |         |   |       |          |              |  |      |        |   |         |   |              |          |   |       |       | 

Transaction Closing Costs






| |   |                                                                                                                                                   
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Workforce reductions as a result of facility closings, facility
    reorganizations and consolidation of administrative functions
    and offices;
|
| |  | Shutdown costs, including those costs that are necessary to
    clean and prepare abandoned facilities for closure; and                           
|
| |  | Costs incurred after shutdown such as lease obligations or
    termination costs, utilities and property taxes after shutdown
    of the facility.



|                          |  |              |       |  |          |   |              |      |  |   |          |  |  |              |      |   |      |   |        |   |  |   |   | 
|------------------------- |  | ------------ | ----- |  | -------- | - | ------------ | ---- |  | - | -------- |  |  | ------------ | ---- | - | ---- | - | ------ | - |  | - | - | 
|                          |  | Accrued      |       |  |          |   | Accrued      |      |  |   |          |  |  | Accrued      |     
|                          |  | Charges at   |       |  |          |   | Charges at   |      |  |   |          |  |  | Charges at   |     
|                          |  | December 31, |       |  |          |   | December 31, |      |  |   |          |  |  | December 31, |     
|                          |  | 2003         |       |  | Payments |   |              | 2004 |  |   | Payments |  |  | Adjustments  |      |   | 2005 |  
|                          |  |              |       |  |          |   |              |      |  |   |          |  |  |              |      |   |      |  
|Workforce reduction costs |  | $            | 1,707 |  |          | $ | (268         | )    |  | $ | 1,439    |  |  | $            | (134 | ) |      | $ | (1,305 | ) |  | $ |  | 
|Shutdown costs            |  |              | 883   |  |          |   | (232         | )    |  |   | 651      |  |  |              | (21  | ) |      |   | (630   | ) |  |   |  | 
|                          |  |              |       |  |          |   |              |      |  |   |          |  |  |              |      |   |      |  
|Total                     |  | $            | 2,590 |  |          | $ | (500         | )    |  | $ | 2,090    |  |  | $            | (155 | ) |      | $ | (1,935 | ) |  | $ |  | 
|                          |  |              |       |  |          |   |              |      |  |   |          |  |  |              |      |   |      |  

F-19



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##### Table of Contents



DEAN HOLDING COMPANY


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)







|    |                                   
|--- | ----------------------------------
|13. | SUPPLEMENTAL CASH FLOW INFORMATION

|                                                                              |  |                        |         |  |      |   |        |      |  |   |        | 
|----------------------------------------------------------------------------- |  | ---------------------- | ------- |  | ---- | - | ------ | ---- |  | - | ------ | 
|                                                                              |  | Year Ended December 31 |        
|                                                                              |  |                        |        
|                                                                              |  | 2005                   |         |  | 2004 |   |        | 2003 | 
|                                                                              |  |                        |         |  |      |   |        |      | 
|                                                                              |  | (In thousands)         |        
|Cash paid for interest and financing charges, net of capitalized
    interest |  | $                      | 51,119  |  |      | $ | 51,371 |      |  | $ | 51,447 | 
|Cash paid for taxes                                                           |  |                        | 4,844   |  |      |   | 24,841 |      |  |   | 3,695  | 
|Non cash transaction:                                                         |  |                        |         |  |      |   |        |      |  |   |        | 
|Dividend of TreeHouse to parent                                               |  |                        | 461,351 |  |      |   |       |      |  |   |       | 






|    |                              
|--- | -----------------------------
|14. | COMMITMENTS AND CONTINGENCIES

Contingent Obligations Related to Divested
Operations


Guaranty of Dean Foods Companys Obligations Under Its
Senior Credit Facility






| |   |                                                                                        
| | - | ---------------------------------------------------------------------------------------
| |  | $56.25 million quarterly beginning on December 31,
    2006 through September 30, 2008;
|
| |  | $262.5 million quarterly on December 31, 2008 through
    June 30, 2009; and           
|
| |  | A final payment of $262.5 million on the maturity date of
    August 13, 2009.         











F-20



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##### Table of Contents



DEAN HOLDING COMPANY


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




Insurance


Leases




|                             |  |                |         | 
|---------------------------- |  | -------------- | ------- | 
|                             |  | Operating      |        
|                             |  | Leases         |        
|                             |  |                |        
|                             |  | (In thousands) |        
|2006                         |  | $              | 41,636  | 
|2007                         |  |                | 36,707  | 
|2008                         |  |                | 33,450  | 
|2009                         |  |                | 30,180  | 
|2010                         |  |                | 24,778  | 
|Thereafter                   |  |                | 52,905  | 
|                             |  |                |        
|Total minimum lease payments |  | $              | 219,656 | 
|                             |  |                |        

Litigation, Investigations and Audits







|    |                                    
|--- | -----------------------------------
|15. | FAIR VALUE OF FINANCIAL INSTRUMENTS







F-21



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##### Table of Contents



DEAN HOLDING COMPANY


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)







|    |                                           
|--- | ------------------------------------------
|16. | GEOGRAPHIC INFORMATION AND MAJOR CUSTOMERS



Major Customers







|    |                                            
|--- | -------------------------------------------
|17. | QUARTERLY RESULTS OF OPERATIONS (unaudited)



|     |                                   |                |   |         |        |  |   |         |  |  |        |         |  |  |   |         | 
|---- | --------------------------------- | -------------- | - | ------- | ------ |  | - | ------- |  |  | ------ | ------- |  |  | - | ------- | 
|     |                                   | Quarter        |  
|     |                                   |                |  
|     |                                   | First          |   |         | Second |  |   | Third   |  |  | Fourth |        
|     |                                   |                |   |         |        |  |   |         |  |  |        |        
|     |                                   | (In thousands) |  
|2005 |                                   |                |   |         |        |  |   |         |  |  |        |         |  |  |   |        
|     | Net sales                         |                | $ | 906,141 |        |  | $ | 917,426 |  |  | $      | 940,276 |  |  | $ | 934,569 | 
|     | Gross profit                      |                |   | 215,485 |        |  |   | 226,306 |  |  |        | 228,890 |  |  |   | 228,214 | 
|     | Income from continuing Operations |                |   | 23,762  |        |  |   | 33,454  |  |  |        | 31,551  |  |  |   | 30,480  | 
|     | Net income(1)                     |                |   | 34,274  |        |  |   | 36,388  |  |  |        | 30,971  |  |  |   | 29,113  | 
|2004 |                                   |                |   |         |        |  |   |         |  |  |        |         |  |  |   |        
|     | Net sales                         |                | $ | 827,683 |        |  | $ | 951,650 |  |  | $      | 940,932 |  |  | $ | 912,842 | 
|     | Gross profit                      |                |   | 206,828 |        |  |   | 213,020 |  |  |        | 211,811 |  |  |   | 219,226 | 
|     | Income from continuing Operations |                |   | 21,396  |        |  |   | 26,539  |  |  |        | 23,744  |  |  |   | 26,727  | 
|     | Net income(2)                     |                |   | 33,424  |        |  |   | 38,883  |  |  |        | 23,066  |  |  |   | 35,987  | 






|    |                                                                                                                                                                                               
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The results of the first, second, third and fourth quarters
    include facility closing and reorganization costs, net of tax,
    of $938,000, $371,000, $253,000 and $397,000, respectively.
|   
|(2) | The results for the first, third and fourth quarters include
    facility closing and reorganization costs, net of tax, of
    $1.7 million, $632,000, and $400,000 million,
    respectively.

F-22



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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

Controls Evaluation and Related CEO and CFO Certifications




13a-14


Definition of Disclosure Controls




Limitations on the Effectiveness of Controls




Scope of the Controls Evaluation




12



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##### Table of Contents





Conclusions









|         |                  
|-------- | -----------------
|Item 9B. | Other Information






PART III







|         |                                 
|-------- | --------------------------------
|Item 10. | Directors and Executive Officers








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

10-K.







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

10-K.







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

10-K.







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



13



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##### Table of Contents






PART IV







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

Financial Statements




|                                                                                                            |  |      |     | 
|----------------------------------------------------------------------------------------------------------- |  | ---- | --- | 
|                                                                                                            |  | Page |    
|                                                                                                            |  |      |    
|Report of Independent Registered Public Accounting Firm                                                     |  |      | F-1 | 
|Consolidated Balance Sheets as of December 31, 2005 and 2004                                                |  |      | F-2 | 
|Consolidated Statements of Income for the years ended
    December 31, 2005, 2004 and 2003                  |  |      | F-3 | 
|Consolidated Statements of Parents Net Investment for the
    years ended December 31, 2005, 2004 and 2003 |  |      | F-4 | 
|Consolidated Statements of Cash Flows for the years ended
    December 31, 2005, 2004 and 2003              |  |      | F-5 | 
|Notes to Consolidated Financial Statements                                                                  |  |      | F-6 | 

Financial Statement Schedule






Exhibits




14



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##### Table of Contents







| |     |                        
| | --- | -----------------------
| | By: | /s/ Ronald L. McCrummen

| |                          
| | -------------------------
| |                          
| | Ronald L. McCrummen      
| | Senior Vice President and
| | Chief Accounting Officer 





|                                           |  |                          |  |                |  | 
|------------------------------------------ |  | ------------------------ |  | -------------- |  | 
|Name                                       |  | Title                    |  | Date          
|                                           |  |                          |  |               
|                                          
|/s/ Gregg L. EnglesGregg L. Engles         |  | Chief Executive Officer  |  | March 28, 2006
|                                          
|/s/ Barry A. FrombergBarry A. Fromberg     |  | Chief Financial Officer  |  | March 28, 2006
|                                          
|/s/ Ronald L. McCrummenRonald L. McCrummen |  | Chief Accounting Officer |  | March 28, 2006
|                                          
|/s/ Steven J. KempsSteven J. Kemps         |  | Sole Director            |  | March 28, 2006

S-1



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##### Table of Contents



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM








10-K.








---



##### Table of Contents



SCHEDULE II


DEAN HOLDING COMPANY


VALUATION AND QUALIFYING ACCOUNTS


Years Ended December 31, 2005, 2004 and 2003




|                  |  |                |        |  |            |   |       |       |  |   |            |         |  |               |       |  |  |   |        | 
|----------------- |  | -------------- | ------ |  | ---------- | - | ----- | ----- |  | - | ---------- | ------- |  | ------------- | ----- |  |  | - | ------ | 
|                  |  | Balance        |        |  | Charged to |   |       |       |  |   |            |        
|                  |  | Beginning of   |        |  | Costs and  |   |       |       |  |   |            | Balance | 
|Year              |  | Period         |        |  | Expense    |   |       | Other |  |   | Deductions |         |  | End of Period |      
|                  |  |                |        |  |            |   |       |       |  |   |            |         |  |               |      
|                  |  | (In thousands) |       
|December 31, 2003 |  | $              | 8,128  |  |            | $ | 5,058 |       |  | $ |           |         |  | $             | 2,169 |  |  | $ | 11,017 | 
|December 31, 2004 |  |                | 11,017 |  |            |   | 605   |       |  |   | 1,660      |         |  |               | 3,782 |  |  |   | 9,500  | 
|December 31, 2005 |  |                | 9,500  |  |            |   | 3,509 |       |  |   |           |         |  |               | 6,408 |  |  |   | 6,601  | 



---



##### Table of Contents



INDEX TO EXHIBITS


Explanatory Note:


|        |    |    |  |             |  |                                                                                                                                                                                                                                                        
|------- | -- | -- |  | ----------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    |    |  |            
|Number  |    |    |  | Description
|        |    |    |  |            
|        | 3  | .1 |  |            |  | Certificate of Incorporation (incorporated by reference from our
    2002 Annual Report on Form 10-K, File No. 1-08262).                                                                                                                               
|        | 3  | .2 |  |            |  | Certificate of Amendment to Certificate of Incorporation
    (incorporated by reference from our 2002 Annual Report on
    Form 10-K, File No. 1-08262).                                                                                               
|        | 3  | .3 |  |            |  | Amended and Restated Bylaws (incorporated by reference from our
    2002 Annual Report on Form 10-K, File No. 1-08262).                                                                                                                                
|        | 4  | .1 |  |            |  | Specimen of Common Stock Certificate (incorporated by reference
    from our 2002 Annual Report on Form 10-K, File
    No. 1-08262).                                                                                                                   
|        | 4  | .2 |  |            |  | Form of Senior Indenture related to our 6.625%
    ($200 million) and 8.15% ($250 million) senior notes
    (incorporated by reference from Legacy Dean Registration
    Statement on Form S-3 filed on January 23, 1998, File
    No. 333-44851).     
|        | 4  | .3 |  |            |  | Form of senior debt securities (incorporated by reference from
    Legacy Dean Registration Statement on Form S-3 filed on
    January 23, 1998, File No. 333-44851).                                                                                  
|        | 4  | .4 |  |            |  | Form of Senior Indenture related to our 6.75%
    ($100 million) and 6.9% ($150 million) senior notes
    (incorporated by reference from Legacy Dean Registration
    Statement on Form S-3 filed January 19, 1995, File
    No. 33-57353).           
|        | 4  | .5 |  |            |  | Form of senior debt securities related to our 6.75%
    ($100 million) and 6.9% ($150 million) senior notes
    (incorporated by reference from Legacy Dean Registration
    Statement on Form S-3 filed January 19, 1995, File
    No. 33-57353).     
|        | 10 | .2 |  |            |  | Form of Joinder Agreement dated December 21, 2001 executed
    by us and certain of our subsidiaries in favor of certain
    lenders to our parent company (incorporated by reference from
    our 2002 Annual Report on Form 10-K, File No. 1-08262). 
|        | 10 | .3 |  |            |  | Form of Security Agreement dated December 21, 2001 executed
    by us and certain of our subsidiaries in favor of certain
    lenders to our parent company (incorporated by reference from
    our 2002 Annual Report on Form 10-K, File No. 1-08262).
|        | 12 |    |  |            |  | Computation of Ratio of Earnings to Fixed Charges (filed
    herewith).                                                                                                                                                                                
|        | 31 | .1 |  |            |  | Certification of Chief Executive Officer pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002 (filed
    herewith).                                                                                                                           
|        | 31 | .2 |  |            |  | Certification of Chief Financial Officer pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002 (filed
    herewith).                                                                                                                           
|        | 32 | .1 |  |            |  | Certification of Chief Executive Officer pursuant to
    Section 906 of the Sarbanes-Oxley Act of 2002 (filed
    herewith).                                                                                                                           
|        | 32 | .2 |  |            |  | Certification of Chief Financial Officer pursuant to
    Section 906 of the Sarbanes-Oxley Act of 2002 (filed
    herewith).