Canada Bread Doubles Earnings

TORONTO - May 1/02 - SNS -- Canada Bread Company, Limited (TSE:CBY) doubled its net earnings to $6.4 million during the company's opening quarter, while sales soared 69% to $231.5 million during the January to March period.

The increase in sales was principally due to the consolidation of results for Multi-Marques, wholly owned since October 2001. Excluding the Multi-Marques contribution, sales for the quarter increased by 8%, reflecting business growth across all principal product lines.

Earnings from operations for the quarter were $10.9 million, compared to $5.9 million last year ($6.6 million last year before goodwill amortization), an increase of 65%. In addition to the contribution from Multi-Marques, the Company continues to benefit from operational improvements that have been achieved over the past two years, and from increased sales both in Canada and to Maple Leaf Bakery in the United States.

Net earnings for the quarter were $6.4 million ($0.30 per share), compared to $3.3 million ($0.16 per share) last year ($4.1 million last year or $0.19 per share before goodwill amortization), an increase of 57%. The increase in net earnings reflects the strong improvement in operating earnings, which was partly offset by higher interest expense on debt incurred to purchase the remaining shares of Multi-Marques.

On April 24, 2002, the Company declared a dividend of $0.06 per share payable on July 3, 2002 to shareholders of record on June 14, 2002.

As a result of recent organizational changes, the Company also announced that Michael McCain has been appointed to Chairman of the Board, following the appointment of Richard Lan as President and Chief Executive Officer. Mr. McCain is also the Chief Executive Officer of Maple Leaf Foods Inc.

Canada Bread, which is 68% owned by Maple Leaf Foods Inc.