Bunge Buying Russian Grain Terminal

NEW YORK - Oct 28/04 - SNS -- Bunge Limited's European operating arm will buy a grain terminal in the port of Rostov, Russia from ZAO Trade Port.

Bunge's investment, including a planned expansion of the terminal, will be approximately US$10 million.

"Russia and the neighboring CIS countries possess tremendous long-term agricultural growth potential," stated Jean-Louis Gourbin, president and CEO, Bunge Europe. "As the first international company to own a dedicated export terminal in Rostov, Bunge will be better able to capture a share of this growth, improve its logistics efficiency and serve customers around the Black and Mediterranean Seas, and in the Middle East."

Rostov is located near the mouth of the Don River in southern Russia, and is one of the major export outlets for grain from the region. It is close to the large growing areas of Rostov, Krasnodar and Stavropol, and has easy access to the Black Sea. The location also affords the ability to export grain from Kazakhstan.

The purchase of the Rostov grain terminal is another step in Bunge's ongoing expansion in Russia and Eastern Europe. Bunge entered the Russian market in October 2002 with the acquisition of Cereol, producer of the popular Oleina brand vegetable oil. In 2004, Bunge began grain origination activities in the country by opening offices in Moscow, Rostov and other key production areas.

In addition to its activities in Russia, the company has begun construction of a grain terminal in Liepaja, Latvia and a crushing plant at the port in Ilyichevsk, Ukraine. The combination of these assets will help to build Bunge's agribusiness in the region and ensure an efficient logistics platform for both imports and exports.