ANNUAL REPORT 2007

Culture-Guided Results.

Our culture is the foundation of everything we do, and our K Values continually remind us that how we generate business results is just as important as the results themselves. An important part of maintaining an effective culture is gathering feedback from our employees on a regular basis.

In 2007 we conducted our third in a series of culture surveys designed to gauge employee perceptions of our work environment, advancement opportunities and ability to do their work. Results of this survey will help us ensure that our people have the necessary information and opportunities to contribute their best work and build satisfying careers.

Kellogg has long emphasized having a diverse and inclusive culture that reflects our consumer base. The company's focus on diversity and inclusion ensures that our business leaders and employees are active participants in creating a work environment that values differences in thought, culture, experiences and background. Our employee affinity groups – Kellogg Multinational Employee Resource Group (K-MERG), Kellogg African American Resource Group (KAARG), Hispanic Resource Group (HOLA), Women of Kellogg (WOK) and Young Professionals (YP) – promote cultural and generational awareness and provide developmental opportunities and professional mentoring.

Our company was founded on a commitment to people and doing business in a responsible manner. This commitment continues to guide us today and serves as the foundation of our efforts to drive sustainable business results.

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