Item 2.05 Costs Associated with Exit or Disposal Activities

On September 10, 2009, Lancaster Colony Corporation, ("the Company") committed to a plan to close its dressings and sauces manufacturing operation located in Wilson, New York. This decision is intended to provide greater efficiency in the Company's Specialty Foods segment by consolidating most of this facility's operations into other existing plants, outsourcing certain requirements and exiting less profitable dressing lines. It is anticipated that production at the facility will be phased out by November 20, 2009. While timing of the disposal of the associated real estate is difficult to predict, the Company expects that all other disposal and closing activities will be complete by the end of the calendar year.

The Company's preliminary estimate of the total pretax charges to be incurred in connection with this closure is approximately $3 to $4 million. The Company estimates one-time termination benefits and other employee costs included in the total pretax charges will exceed $2 million, with the balance of the pretax charges relating to other disposal-related activities. Cash expenditures are expected to be approximately $2 to $3 million. Annual savings from this action are expected to exceed $2 million. The foregoing amounts are preliminary, based on management's best estimates and subject to revision depending on numerous factors including the specific timing of employee terminations, the extent and timing of reconfiguring our production processes, and the success of our other related cost saving and restructuring efforts.

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