Maple Leaf Net Earnings Advance 74%

TORONTO - May 1/02 - SNS -- Maple Leaf Foods Inc. (TSE:MFI) reported a 74% jump in net earnings to $16.89 million as sales advanced 16% to $1,223 million during the first quarter of the current fiscal year.

The company said the increase in sales during the January to March quarter was driven by strong results in the Bakery Products Group, and strong protein value chain results in both the Meat Products Group and the Agribusiness Group.

Meat Product Group sales for the first quarter increased 7% to $737 million from $689 million last year, while earnings from operations of $12.5 million compared to $10.4 million for the same period last year ($11.5 million before goodwill amortization). Excluding goodwill amortization from last year's results, operating earnings increased by 8% quarter over quarter.

Maple Leaf Pork continued to achieve operational improvements, and recorded improved results over last year in spite of industry wide margin pressure. During the first quarter, Maple Leaf Medallion(TM) Naturally fresh pork was launched, Canada's first 100% vegetable grain fed pork, produced from hogs that are fed exclusively the Company's proprietary NutriMedallion(TM) feed.

Maple Leaf Consumer Foods and Maple Leaf Foods International both had very strong quarters, recording substantial increases in profitability. In the poultry industry, commodity poultry margins continued to be challenged by depressed industry-wide poultry prices. While Maple Leaf Poultry was impacted by these industry conditions, it has benefited significantly from the development of its value-added branded poultry products, which has reduced the Company's exposure to commodity price fluctuations.

Agribusiness Group sales for the first quarter of $221 million increased by 9% from $202 million last year, while operating earnings of $17.3 million increased from $14.2 million for the same period last year ($14.6 million before goodwill amortization).

Shur-Gain and Landmark Feeds animal nutrition operations and Elite Swine, the Company's swine production business, all continued to record strong results. Rothsay, the Company's by-products recycling operations, also had improved financial performance compared to last year, when its results were adversely affected by high-energy prices.

Bakery Product Group sales for the first quarter of $265 million increased 62% from $164 million for the same period last year. The increase was principally due to the inclusion of sales from Multi-Marques Inc. ("Multi-Marques"), of Quebec and the New York Bagel Company of the United Kingdom, both of which were purchased in the fourth quarter of 2001. Excluding the effect of these acquisitions, sales for the quarter increased by 7%.