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McDonald's Corporation Highlights Global Results in Comprehensive 2004 Corporate Responsibility Report

Report Details Social and Environmental Progress

Aug 5, 2004

McDonald's Corporation (NYSE: MCD) today issued its 2004 Corporate Responsibility Report - highlighting global initiatives and providing an in-depth analysis of several corporate responsibility-related aspects of its global foodservice business. Aligned with the company's global vision and corporate strategy, the Plan to Win, the 2004 Corporate Responsibility Report summarizes initiatives and progress as they relate to three of the Plan to Win pillars - Products, People and Place.

"This report is a comprehensive, worldwide update on McDonald's commitment to the more than 30,000 communities that we serve every day," said Charlie Bell, president and chief executive officer of McDonald's Corporation. "During the two years since our last corporate responsibility report, the business world has been jarred by scandals, making good corporate governance more relevant than ever. Our efforts started with our founder, Ray Kroc, who instilled in McDonald's a belief in giving back to the communities that we serve. Being responsible is not only our heritage; it is an integral part of our business strategy."

  McDonald's 2004 Corporate Responsibility Report highlights include:

  -- McDonald's Menu & Balanced Lifestyles: Across McDonald's global system,
     in more than 100 countries, an array of new menu items, physical
     activity programs and education initiatives have been introduced or
     expanded for customers. In addition to traditional favorites, many
     markets are adding entree, side and beverage alternatives with a
     variety of nutritional profiles that can fit into a balanced
     lifestyle - such as the Salads Plus menu (Australia), Lighter Choices
     (Canada), Premium Salads and Apple Dippers (United States).   Education
     and physical activity efforts have included a Five-A-Day brochure
     (United Kingdom), the "Do the Ronald" Activity Program (Brazil), and
     more.  In 2003, McDonald's established a Global Advisory Council of
     experts to help guide the company in the areas of nutrition, education
     and physical activity. "I'm part of McDonald's Global Advisory Council
     because I see an opportunity to help develop realistic approaches that
     meet people's need for fun and convenience," said Dr. Paul Gately,
     Carnegie professor of exercise and obesity at Leeds Metropolitan
     University, United Kingdom.  "Working with McDonald's has made me
     realize that McDonald's is committed to tackling these issues."

  -- Responsible Purchasing:  McDonald's continues to integrate social and
     environmental considerations into its expectations for suppliers.  The
     company is working with suppliers of beef, pork, poultry, buns and
     potatoes to implement measurement and tracking processes that encourage
     continuous improvement in the stewardship of natural resources.
     McDonald's global animal welfare program continues with a second
     consecutive year of approximately 500 audits of processing facilities
     for beef, chicken, pork and laying hens.  In 2003 in its supplier
     social accountability program, McDonald's trained 1,137 suppliers and
     oversaw external assessments of 372 supplier facilities.  A global
     antibiotics policy is on track with dedicated poultry suppliers to
     phase out growth-promoting antibiotics used in human medicine.

  -- A Good Neighbor in 30,000 Communities Around the World:  Focusing on
     the environmental impacts at the restaurant level, McDonald's reduced
     the amount of  packaging used per $1,000 of sales in six of its top
     10 markets by 3.2 percent during 2003.  Working with toy suppliers, the
     company completed a phase-out of intentionally-added mercury in button
     cell batteries used in electronic toys for Happy Meals.  Supporting the
     health and well-being of children and communities has also been a
     priority.  Through World Children's Day (2002 and 2003), nearly
     $27 million has been raised by McDonald's Corporation and its
     owner-operators to support Ronald McDonald House Charities and other
     children's charities in local communities.

  -- Recognized Employer of Choice & Opportunity: Committed to improving its
     reputation as an employer of choice in key markets around the world,
     McDonald's continues to be recognized by third-parties for its efforts
     in hiring, training and retaining employees.  McDonald's USA was
     recognized by Fortune magazine as the Best Company for Minorities (2003
     and 2004); in Brazil, Exame magazine has named McDonald's as one of the
     best companies to work for the past eight years. Charlie Bell,
     McDonald's president and chief executive officer, Claire Babrowski,
     chief restaurant operations officer, Mats Lederhausen, managing
     director of McDonald's Ventures, among countless other McDonald's
     executives and owner-operators, started their McDonald's career as crew

  -- Detailed Supplemental Report Added for 2004: Supplemented with
     quantitative and qualitative facts and information to support
     highlights in the report, McDonald's 2004 Corporate Responsibility
     Report details additional data from the company's top 10 markets around
     the world - accounting for approximately 72 percent of revenue.  The
     company is also striving to raise the bar for future reporting.
     McDonald's uses the Global Reporting Initiative guidelines - a widely
     recognized framework for sustainability reporting - and plans to make
     further progress in reporting in line with the guidelines in future
     Corporate Responsibility reports.

"McDonald's 2004 Corporate Responsibility Report is a significant improvement over its 2002 report and shows the advancements the company has made in addressing some of the toughest challenges facing the food industry," said Mark Lee, director at SustainAbility, an international consultancy dedicated to evolving sustainable business models. "We congratulate McDonald's for increasing their transparency on a broad set of social and environmental issues. For example, McDonald's responsible purchasing efforts and global antibiotics policy move the company beyond traditional industry positions. At the same time, we encourage McDonald's to continue to establish quantifiable targets and to deepen discussion of the unique dilemmas it faces as a global brand."

McDonald's 2004 Corporate Responsibility Report as well other detailed social and environmental information from McDonald's geographic business units is available at , including: McDonald's Europe, Brazil, Japan and Canada. Additional information for the media, including photos and report highlights, is available at .

McDonald's is the world's leading global foodservice retailer with more than 30,000 local restaurants serving nearly 47 million people in more than 100 countries each day. Approximately 73 percent of McDonald's restaurants worldwide are owned and operated by independent, local businessmen and women.

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SOURCE: McDonald's Corporation

CONTACT: Walt Riker, +1-630-623-7318, or William Whitman,
+1-630-623-6745, both of McDonald's Corporation

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