Maples Leaf Reports Strong Profit Growth

TORONTO - Feb 21/03 - SNS -- Maple Leaf Foods Inc. reported a solid improvement in total sales and profits for the fiscal year ended December 31, 2002.

Sales for the year 2002 increased to $5.1 billion from $4.8 billion for 2001. Earnings from operations were $203.6 million compared to $157.5 million for the prior year ($167.9 million before goodwill amortization). Net earnings for the year were $84.7 million ($0. 71 per share) compared to $57.4 million ($0.55 per share) for the prior year ($66.8 million or $0.65 per share before goodwill amortization).

Sales for the fourth quarter of 2002 were $1.3 billion, in line with the prior year. Earnings from operations of $60.7 million compared to $57.6 million last year ($60.4 million before goodwill amortization).

Included in operating earnings in the fourth quarter is an $8.6 million pre-tax gain ($5.5 million after tax) related to the wind-up of a defined benefit pension plan for hourly employees pursuant to a surplus sharing agreement with the plan's beneficiaries. All of the gain is included in the results for the Meat Products Group. The Company anticipates that additional accounting gains of about $6.5 million before tax will be realized in 2003 and also anticipates receiving about $25 million in cash in 2003 as its portion of the plan surplus distribution.

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