Exhibit 99.1


     OAKLAND, Calif.--(BUSINESS WIRE)--June 16, 2002--Dreyer's Grand Ice Cream,
Inc. (Nasdaq:DRYR)

              Nestle to Own 67 Percent of Publicly Traded Dreyer's

     Dreyer's Grand Ice Cream, Inc. (Nasdaq:DRYR), and Nestle S.A. have
announced a broad new strategic alliance in which Dreyer's will acquire Nestle's
U.S. ice cream business for 55 million shares of new Dreyer's stock. This
transaction will increase Nestle's holding in Dreyer's to 67% of fully diluted
shares.

     In addition, Dreyer's shareholders will receive the right to sell (put)
their stock to the company for $83 per share, beginning on January 1, 2006,
during certain periods until mid-May 2006, as part of an agreement between
Nestle S.A., Nestle Holdings, Inc. and Dreyer's. Outstanding Dreyer's shares
could also be called for redemption for $88 beginning on January 1, 2007, until
June 30, 2007, under the same agreement. Dreyer's currently outstanding common
stock will be exchanged on a share for share basis for new common stock that
will carry these put and call features.

     Dreyer's, headquartered in Oakland, California, will continue as a publicly
traded company, with Nestle's ownership remaining at no more than 67%. After the
beginning of 2006, Nestle's ownership of the remaining Dreyer's stock could
increase as a result of the exercise of the call or through exercises of the
puts. It is also possible, after 2006, Dreyer's could continue operating as a
public company. Dreyer's stock will continue to trade on the NASDAQ.

     "For 75 years the people at Dreyer's have delighted consumers with quality
ice cream," said T. Gary Rogers, chairman and CEO of Dreyer's Grand Ice Cream.
"Dreyer's is recognized for its innovation -- begun with the creation of Rocky
Road ice cream by Bill Dreyer in 1929 -- which has resulted in a diverse
offering of favorite premium and superpremium ice cream brands today. This
alliance with Nestle, including the addition of the Haagen-Dazs and Drumstick
brands, enables us to retain our entrepreneurial culture and spirit, and
continue our commitment to brand building, innovation, and world class direct
store delivery."

     "Dreyer's has one focus, quality ice cream," said Peter Brabeck-Letmathe,
CEO of Nestle. "That commitment, Dreyer's enterprising culture, its strong
portfolio of trusted brands, and its premier distribution system is well-served
by continued autonomy. Our long-term investment in Dreyer's speaks to the
tremendous upside we see in the ice cream business in North America and our
confidence that Dreyer's has the right team in place to lead the industry."

     As part of the agreement, Nestle will increase its representation on the
Dreyer's board of directors from two to five members, and the board will expand
from eight to 10 members. Rogers will continue to serve as chairman and chief
executive officer, with Brabeck-Letmathe serving as vice chairman.

     Dreyer's will continue to manage its business with its current team of
executives with the exception of Dreyer's president, William F. Cronk, 59, who
has announced he will retire at the close of the transaction. Cronk will remain
actively involved in Dreyer's as a director.

     Rogers, and Cronk, business partners for 30 years, bought Dreyer's in 1977
and together built it into the $1.5 billion enterprise it is today. Rogers and
Cronk took Dreyer's public in 1981, the same year they expanded distribution
from Dreyer's original Northern California and then West Coast markets, to the
Midwest and East Coast, where its ice cream and frozen dessert products are
marketed under the Edy's name.

     Dreyer's shareholders must approve the deal and the transaction is subject
to regulatory review.

     Merrill Lynch & Co. served as Dreyer's financial advisor on this
transaction, with Wachtell, Lipton, Rosen & Katz as legal counsel. Rhone Group
LLC was financial advisor to Nestle, with Latham & Watkins as legal counsel.

     Dreyer's Grand Ice Cream, Inc. (NNM: DRYR) manufactures and distributes a
full spectrum of premium and superpremium ice creams. The company's products are
marketed under the Dreyer's brand name throughout the western states and Texas,
and under the Edy's(R) name throughout the remainder of the United States.
Dreyer's (together with Edy's) is the best selling brand of packaged ice cream
in the country. Internationally, the Dreyer's brand extends to select markets in
the Far East and the Edy's brand to the Caribbean and South America. Brands
currently manufactured and distributed by Dreyer's include Grand, Grand
Light(R), Homemade, Dreamery(R), Whole Fruit Sorbet, M&M/Mars, Starbucks(R),
Godiva(R) and Healthy Choice(R). For more information on the Company, please
visit www.DreyersInc.com.

     Note to Editors: Edy's, the Dreyer's and Edy's logo design, Dreamery, Grand
Light, Homemade, Flavor Finder, are all trademarks or tradenames of Dreyer's
Grand Ice Cream, Inc. All other trademarks and tradenames are owned by their
respective companies.

CONTACT:  Dryer's Grand Ice Cream, Inc.  Dori Sera Bailey, 510/601-4241 (Media)