Sugar Marketing Agreement Amended

NEW YORK - Feb 4/05 - SNS -- Imperial Sugar Company and Michigan Sugar Company reached a tentative agreement to amend the exclusive ten-year marketing agreement that commenced with the sale by Imperial of its then subsidiary company in February 2002 to a Michigan producer cooperative that formed Michigan Sugar Company.

That agreement provided that Imperial would market the sugar production of MSC for a multi-year period ending in May 2011.

Pursuant to the amended agreement, MSC will assume responsibility for the sales and marketing of sugar production at MSC including production from the Bay City facility formerly known as Monitor Sugar Company, which was acquired by MSC last year. All of the administrative functions of MSC's newly combined operation, including invoicing, customer service and credit and collections will be handled by Imperial personnel. Previously, Imperial handled MSC operations only.

The term of the agreement will remain the same and the economics of the amended agreement are intended to be relatively neutral.