Heartland Hog Farms Purchase Offer

REGINA - May 7/04 - SNS -- Court approval is being sought for an offer by Sterling Pork Farm to purchase Heartland Pork's hog operations and related assets.

KPMG, Inc. and Heartland Pork Management Services will be filing an application with the Saskatchewan Court of Queen's Bench this afternoon to seek approval for the terms of the sale.

On April 13, 2004, Heartland Pork and seven related hog operations sought temporary protection under the Companies' Creditors Arrangement Act (CCAA). Since that time, the court-appointed monitor has been receiving expressions of interest from potential purchasers.

Sterling Pork Farm, a subsidiary of Stomp Pork Farm Ltd. submitted an offer to purchase the hog operations and its related assets. Under the terms of the offer, rural-based employees working in the hog barns will be retained by Stomp. Stomp currently owns 7,500 sows and operates 9 facilities located near Leroy Saskatchewan.

Brian Trypka of KPMG expects that the judge will hear the application on Tuesday, May 11, 2004. Should approval be received, the sale is scheduled to close on May 15, 2004.

Saskatchewan Wheat Pool, the majority shareholder in these operations has been providing interim financing to the hog operations through the court protection process. The Pool announced several weeks ago its exit from the hog industry and as a result recorded a non-cash impairment charge in its second quarter. Based on the current offer to purchase, the Pool believes that the pre-tax, $10.7 million impairment charge that was recorded in the 2nd quarter will be adequate to cover its loss on investment in the pork industry.