PHELPS LOSES ENDORSEMENT PACT, FACES SUSPENSION OVER PHOTOS

Kellogg Co. is severing its relationship with Michael Phelps after
the Olympian was photographed smoking marijuana.

In addition, USA Swimming, the sport's governing body, took the
unusual step of suspending Mr. Phelps for three months, not because
he violated drug regulations, but because "he disappointed so many
people," the federation said. He will not be able to compete until
May. The world championship competition takes place in Rome in July.

USA Swimming suspended Michael Phelps for three months, not because
he violated drug regulations, but because "he disappointed so many
people," the federation said.

The Battle Creek, Mich., packaged-food company, whose brands include
Frosted Flakes, Rice Krispies and Pop-Tarts, said Thursday it
wouldn't continue its endorsement contract with the gold medalist,
which comes up for renewal at the end of the month.

In September, the company unveiled a special-edition line of
packaging featuring the champion swimmer. His image appeared on
Kellogg's Frosted Flakes cereal, Kellogg's Corn Flakes cereal, Club
Crackers and Kellogg's Rice Krispies Treats Marshmallow Squares.

"We originally built the relationship with Michael, as well as the
other Olympic athletes, to support our association with the U.S.
Olympic team," a Kellogg spokeswoman said in a statement. "Michael's
most recent behavior is not consistent with the image of Kellogg."

Mr. Phelps couldn't be reached to comment. "Michael accepts these
decisions and understands their point of view. He feels bad he let
anyone down," said Drew Johnson, spokesman for Mr. Phelps's agent,
Octagon, a unit of Interpublic Group. "He's also encouraged by the
thousands of comments he's received from his fans and the support
from his many sponsors. He intends to work hard to regain everyone's trust."

The swimmer was caught up in a firestorm of bad publicity Sunday when
the photos of him appeared in a British tabloid.

AdAge.com reported the Kellogg news. Kellogg, which markets heavily
to children, is the first marketer to drop the athlete. Many others,
such as watch maker Omega, owned by Swatch Group AG, have expressed
support for Mr. Phelps