Dear shareholders,

This year has been a challenging one for Chiquita Brands International Inc. In 2006, we introduced innovative products, but circumstances within the industry caused debt for our company. Despite our decrease in revenue this year, we are enthusiastic about the increase in sales and how it has sculpted a promising future for Chiquita.

We experienced the following changes in 2006:

A decrease in net income from $131 million in 2005 to a loss of $96 million in 2006.

An increase in net sales from $3.9 billion in 2005 to $4.5 billion in 2006.

A decrease in operating income from $188 million in 200 to a loss of $28 million in 2006.

The European Commission imposed a tariff on bananas imported from Latin America of €176 per metric ton. The increase from €76 per metric ton eliminated our ability to distribute as much volume this year. The regulatory change pushed higher tariff costs on Chiquita and reduced banana prices in core European markets. In March 2007, Ecuador requested an arbitration panel under World Trade Organization expediting procedure, and we expect a ruling in late 2007. Several Latin American governments have been supportive by calling the current E.U. banana regime illegal.

Increased paper costs, fuel charges and resin prices have significantly affected our shipping and transportation costs.

A discovery of E. coli in certain industry spinach products in September 2006 led to an investigation of our Fresh Express brand by the U.S. Food and Drug Administration. Our commitment to health and quality is our first priority. Though no trace of E. coli has been found in Fresh Express, we invested $2 million in May 2006 in the formation of an independent scientific advisory panel to enhance our food-safety practices.

We overestimated the value of Atlanta AG’s relationship when we acquired it, which resulted in a $43 million goodwill impairment charge. In addition, we settled a U.S. Department of Justice investigation with a $25 million fine this year.

Marketing and Innovation

Our vision is to continue as the global leader in healthy and fresh foods through innovation and quality. We aim to double last year’s revenue and profitability in the next five years. We will strive to accomplish this through two key objectives: to deliver innovative, valuable products and to increase the efficiency of Chiquita’s operations.

We introduced 12 new products during 2006:

Fresh Express “Sweet Butter” and “5 Lettuce Mix” salad blends were the top two new items among all categories in U.S. supermarkets in the third quarter. The duo’s success surpassed all new products from Pepsi, Frito-Lay, Kraft and Campbell Soup products.

Chiquita Apple Bites were the number one brand of sliced apples in the United States this year. We have increased retail distribution by about 38 percent to our restaurant partners. In March 2007, we expanded to Subway, the co-brand of Chiquita Apple Bites, and we are expecting to reach more than 14,500 restaurants nationally in 2007.

These are simply a few of Chiquita’s new, innovative products. We are encouraged by opportunities to expand profitability and production by satisfying consumer demand for fresh, easy foods. We will continue to test and introduce innovative products into the marketplace in 2007.

We are confident in our ability to increase shareholder value and competitive long-term operating costs. We will achieve growth through partnerships with expert shipping service providers, which will allow us to further center our efforts and resources on reinforcing customer relationships, generating capital to reduce debt and invest in development opportunities.

In 2006, we surpassed our cost savings and synergy goals. Our gross cost savings of $47 million alleviated some cost increases that affect the industry as a whole. Additionally, we have set a goal to deliver $40 million in gross cost savings and anticipate progress in 2007.

We are determined to become a customer-preferred brand through standout product quality, category management, customer service and in-store performance. Progressive Grocer magazine credited Chiquita and Fresh Express as “Category All-Stars” in 2006 for exceptional management, honoring the brands’ position as Category Captains in at least five of the last 10 years.

For the Future

We are confident that we can expect good things for the future of Chiquita. Consistent with Chiquita’s mission for quality innovation, we will base a portion of our management team’s compensation on the achievement of revenue targets for our higher-margin products in 2007.

We are optimistic about Chiquita’s potential for growth in 2007. We would like to highlight our gratitude for our shareholders and employees who have been supportive and loyal to Chiquita.

Fernando Aguirre

Chairman & CEO

Chiquita Brands International Inc.

April 12, 2007