Additionally, Post plans to pay off the $100 million ofunsecured bonds at par on March 16, 2005. The remarketing of the6.85% Mandatory Par Put Remarketed Securities would have put thematurity date at March 16, 2015.

Under terms of the remarketing agreement, Merrill Lynch had theright to remarket the underlying unsecured bonds on the March 16,2005 remarketing date for a 10-year term and at an interest rate toPost calculated as 5.715%, plus Post's then current credit spreadto the 10-year Treasury.

"Based on current interest rates, the forward Treasury yieldcurve and out capital plans for 2005, we have concluded that it isnot in the best interests of the company to permit the MOPPRS debtto be remarketed for an additional 10-year term at a substantiallyabove-market interest rate," Christopher Papa, Post's executivevice president and chief financial officer, says in a preparedstatement.