<B>California man had sued over company's delays in limiting them

Feb 11 2005, SAN FRANCISCO, California (Reuters) -- McDonald's has
agreed to pay US$8.5 million to settle a lawsuit over artery-clogging
trans fats in its cooking oils, the company said Friday. </B>

McDonald's said it will donate US$7 million to the American Heart
Association and spend another US$1.5 million to inform the public of
its trans fat plans.

The settlement is the result of litigation from a San Francisco-area
activist who has been seeking to raise public awareness of the health
dangers from the trans fatty acids (TFAs) in hydrogenated or partially
hydrogenated oils (PHOs).

Trans fats are used in thousands of processed food products, often
giving the crunch to french fries, cookies and cereals.

They are created in processing vegetable oils and have been found to
be as unhealthy as pure cholesterol. The latest official U.S.
nutrition recommendations suggest limiting their intake.

"McDonald's has reached an agreement to further notify our customers
about the status of our ongoing initiative to reduce TFAs in our
cooking oil," the company said in a statement.

Stephen Joseph, a lawyer who founded the Web site <A
HREF="http://www.bantransfats.com/">BanTransFats</A>, sued McDonald's
over complaints the firm did not properly inform the public that it
had encountered delays in plans to lessen the trans fats in its
cooking oils.

Joseph said his site would receive US$7,500, as would another
plaintiff in the case.

"McDonald's has been successful in reducing TFA levels in our Chicken
McNuggets, Crispy Chicken Sandwich and McChicken Sandwich," the fast
food firm said. "McDonald's continues to work hard on our initiative
to reduce TFAs in our cooking oil."

British-born Joseph first gained publicity for his cause by suing
Kraft Foods two years ago to highlight the trans fat content of
much-beloved Oreo cookies. The company has since moved to remove trans
fats from its snack foods.

"While there is a difference of opinion regarding whether McDonald's
gave effective notice to its customers that the oil was not changed,
McDonald's deserves recognition and credit for having achieved a
reduction in the trans fat levels in its chicken products and for
working diligently over the last two years to test additional cooking
oils," Joseph said in a <A
HREF="http://www.bantransfats.com/mcdonalds.html">statement</A>.

Dunkin' Donuts, a unit of Britain's Allied Domecq Plc, and other
companies have in recent months introduced new products free of trans
fats.