August 8, 1997



      The following information was released to the news media today.

                   Hershey Foods Purchases Common Stock


Hershey,  Pa. - Hershey Foods Corporation  announced that it has purchased today
9,900,990  shares of its Common Stock from Hershey Trust Company,  as Trustee of
the Milton  Hershey  School Trust.  The  corporation  paid $50.50 per share,  or
approximately $500 million for the shares.
     Hershey Trust Company,  as Trustee of the Milton Hershey School Trust,  has
advised  the  corporation  that it  intends  to  retain  voting  control  of the
corporation,  which the School  Trust has held since 1918,  and that it has sold
the shares to diversify  the School  Trust's  investment  holdings.  The Hershey
Trust Company as fiduciary for the School Trust has also advised the corporation
that it will  continue  to review  the School  Trust's  holdings  and  undertake
further  diversification  as it deems  appropriate,  although  it has no present
intention of selling additional shares.
     Hershey Trust Company, as Trustee for the School Trust, had 76.5 percent of
the voting power of both classes of the corporation's  common stock prior to the
transaction and has 76.0 percent following the transaction. It continues to hold
99.5  percent of all Class B Common  Stock  shares  outstanding,  which carry 10
votes per share.
     Milton  Hershey  School,  located in Hershey,  Pennsylvania,  is a private,
non-profit  boarding school for needy children.  The School  currently cares for
over 1,000 boys and girls in grades  kindergarten  through twelve. The full cost
of education  and care for the students at the School is paid from income of the
Trust created by Milton S. and Catherine S. Hershey in 1909.
     "This  transaction  represents an excellent  opportunity to invest our free
cash flow," said Kenneth L. Wolfe,  Chairman and Chief Executive Officer.  "Even
with this repurchase,  our financial flexibility to invest in our businesses and
in continued future additional open market stock repurchase programs, as well as
increased dividends, remains strong."
     Hershey  Foods  Corporation  is a  leading  producer  of a  broad  line  of
chocolate, confectionery, pasta and chocolate grocery products.

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