CANADA: UGG: Company Announcement

United Grain Growers Limited is pleased to announce that its wholly owned subsidiary, Unifeed Limited, has entered into discussions which are intended to lead to the acquisition of the assets of Pro Form Feeds, an operating division of Agro Pacific Industries. Terms of the purchase were not disclosed. Established in 1948 to service the emerging requirements of poultry, dairy and livestock producers in the Fraser Valley of British Columbia, Pro Form Feeds is located in Chilliwack, B.C. This feed business has earned a substantial share of the market through its focus on innovation and quality in products and service to its customers. Upon its completion, this acquisition will continue UGG's commitment to expand its already successful feed and livestock related business ventures. Unifeed Limited operates feed mills in Alberta, Manitoba, and central British Columbia. The acquisition of Pro Form Feeds will expand Unifeed's business to the Fraser Valley and Pacific Coast regions of British Columbia. Feed manufacturing is a business which adds value to feed grains and oil seeds grown in Western Canada. In addition, this business will mesh effectively with UGG's grain handling and crop services businesses.