Lilydale Ends Life as Co-operative

TORONTO - Jun 23/05 - SNS -- Lilydale Co-operative Limited will be converted from a co-operative to a corporation following a vote in favor of the restructuring at the poultry processor's annual and special meeting in Edmonton.

Lilydale, originally founded as a cooperative in 1940, will be converted into a corporation under the Canada Business Corporations Act pursuant to a Court-approved plan of arrangement. The Alberta Court of Queen's Bench granted a final order in respect of the arrangement on Wednesday, June 22, 2005. It is anticipated that the conversion will become effective on June 26, 2005.

Erv Wiens, a poultry farmer and Chairman of the Lilydale board, says the conversion will give farmers new options to manage their equity investment in Lilydale and will create a financial structure that maintains a strong balance sheet for the company. "Poultry farmers will still have the right to maintain future ownership and control of Lilydale," he explains, "but now there will be more ways to manage and grow their investment."

Farmers had the option to convert their membership equity in Lilydale into common shares or subordinated debentures of the new corporation. Lilydale will remain a private corporation, with the board of directors retaining control over share transfers. Lilydale intends to implement a share sale and repurchase program to give farmers greater flexibility in managing their investment in Lilydale.

Lilydale CEO, Ed Rodenburg, says the change will encourage new investment from existing shareholders and from new poultry suppliers. Rodenburg notes "for the first time, the board and shareholders now have the ability to consider a full range of investment options, including external investment and employee investment, if required for growth or business opportunities." Lilydale has 2,700 employees, annual sales of over $500 million and has just concluded a year with record net earnings.