Agricore United Loss Widens 66%

WINNIPEG - Mar 27/03 - SNS -- Agricore United reported a net loss of CDN $19.6 million in the quarter ended January 31, 2003, a 66% increase over the $11.8 million loss reported during the second quarter of the 2001-02 fiscal year.

The 2002 drought continues to drive lower industry-wide grain shipments. It is the predominant factor affecting the $24 million reduction in the company's gross profit, offset by further reductions in cash expenses of $18 million from ongoing rationalization of operations and general cost containment efforts.

In addition, higher current tax rates on profitable subsidiaries suppressed future tax recoveries calculated at lower expected future tax rates, lowering the effective tax recovery rate to 30% compared to 41% for the same quarter last year and increasing the loss per share.

"Due to the lagged effect of a poor harvest, the last two years' consecutive droughts have had a sustaining influence on our bottom line," said Brian Hayward, Chief Executive Officer. "But a return to normal growing conditions this spring should similarly lead to sustained improvements in earnings over subsequent quarters."

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