April 12, 2007

To our shareholders,

Fiscal 2006 was a valuable year for Chiquita Brands International Inc. Positive developments occurred with an increase in market share in Europe and North America. Net sales increased by $4.5 billion due to a higher demand for Chiquita’s products in 2006. While gaining in net sales, Chiquita experienced a decrease in net income at $96 million due to floods, tariffs and political instability. With an industry increase in plastic and fuel, operating costs increased. In turn, operating income decreased to a loss of $28 million.

Although Chiquita has faced some considerable challenges, it continues to grow as a responsible, sustainable company. A 15 percent increase in net sales assures our success and validates consumers’ acceptance of our advancements in new products and food safety. Chiquita maintains its reputation as one of the leading distributors of quality produce.

Fresh Cut Products

Fresh Cut products have met the growing consumers’ needs for healthy, fresh and convenient food products. In 2006, the company expanded its line of convenient products and distributed single “Chiquita-To-Go” bananas into 8,000 non-grocery outlets. “Chiquita Fresh and Ready” was also introduced into testing markets in traditional grocery stores as an innovative way to keep bananas fresher. During 2006, Fresh Express launched 12 products, including “5-Lettuce Mix” and “Sweet Butter” blends, to its line of ready-to-eat salads.

The Fresh Cut segment was affected by consumer concerns regarding the safety of packaged salad products, after the discovery of E. coli in certain industry spinach products in September 2006. This resulted in an investigation by the U.S. Food and Drug Administration that Chiquita invested $25 million towards research. The investigation linked no cases of illness to our Fresh Express products and found no traces of E. coli in our products. Consumer’s concern about health-safety regarding the E. coli will continue to affect sales.

In the Industry

Challenging obstacles occurred in 2006. A decline in banana pricing occurred due to the increase in tariffs. Chiquita experienced an increase in the price of packaging and transportation as well. While the Euro rose and Chiquita saw its benefits, the decline in banana pricing affected net income. Flood costs occurred related to Tropical Storm Gamma in 2006. This also contributed to our loss in net income.

The company operates in many foreign countries, including Central and South America, the Philippines and the Ivory Coast. These activities are subject to risks, including government regulation, currency restrictions, political instability, and terrorist activities. We issued a $25 million agreement with the U.S. Department of Justice (DOJ) due to a violation for securing land and protecting employees with paramilitary groups. We understand the serious nature of this issue and complied with the DOJ to take responsibility for our actions. Employees’ safety is our main concern, and we will continue to protect and secure our land.

Looking Ahead

Chiquita experienced positive results from testing new products in 2006, and we will persist in creating convenient products to satisfy our consumers’ desires in the upcoming year.

We expect that the Fresh Cut segment will continue to experience a significant impact through 2007 due to the issues related to fresh spinach products. Chiquita hopes to overcome this issue with its reputation of distributing safe, fresh products.

Chiquita continues to grow into a sustainable, conscious, and innovative company. We look forward to the opportunities to grow in the next coming year.

Sincerely,

Fernando Aguirre

Chairman of the Board and Chief Executive Officer