Saputo Inc announced today its financial results for the third quarter of 2001, ended December 31, 2000. During this quarter, the Company had to contend with a substantial devaluation of its inventories due to the significant decrease in the average selling price per pound of cheese on the American market. In fact, it fell to its lowest level in ten years. The ongoing improvement in the Company's manufacturing processes and the synergies developed in the normal course of activities could not fully offset the negative impact of the low average selling price per pound of cheese.

REVENUES DOWN 1.5%

Revenues reached $490.1 million for the three months ended December 31, 2000, which was 1.5% less than the $497.4 million attained a year earlier. The fact that the average selling price of cheese on the American market was more than 11% lower than during the same period in 1999 was the main reason for this drop in revenues.

EBITDA DOWN 12.2%

Earnings before interest, income taxes, depreciation and amortization (EBITDA) amounted to $57.6 million, which was 12.2% less than the $65.6 million recorded for the corresponding period in the previous fiscal
year.

In Canada, EBITDA increased slightly due to the improvement in the Company's manufacturing processes and the ongoing integration plan for Cayer- JCB Group Inc.

However, this increase was not enough to compensate for the lower EBITDA in the United States. Two main factors explain this lower EBITDA, both of them linked to the average selling price per pound of cheese on the American market, which is beyond the Company's control.

Firstly, the low average selling price per pound of cheese has made it necessary to reassess the Company's inventories at a lower value compared with the value at March 31, 2000. The impact of this re-evaluation accounts for nearly 62% of the reduction in EBITDA, or $6.4 million for this quarter alone. The cumulative negative effect of this re-evaluation since the beginning of the current fiscal year is $3.5 million.

Secondly, the cost of manufacturing a pound of cheese is made up of two components: milk cost and other operating costs. The price of milk, which accounts for the larger part of the Company's manufacturing costs, fluctuates with the selling price of cheese. This does not apply to the other operating costs. However, the proportion of these other costs within the total manufacturing cost will vary with the selling price per pound of cheese. The higher the price of cheese, the lower the proportion. The reverse is also true. The lower the price of cheese, the greater the proportion of these other expenses in the total manufacturing cost. During this quarter, the average selling price of cheese was approximately US$1.08 per pound, which is US$0.14 lower than the $US1.22 for the same quarter last year. Accordingly, the other operating costs represented a larger proportion of the Company's manufacturing costs this quarter and reduced EBITDA by $3.5 million compared with the third quarter of the previous fiscal year. The cumulative impact since the beginning of the current fiscal year is less, but still negative, and amounted to $1.0 million.

NET EARNINGS DOWN 14.8%

Net earnings totalled $22.4 million or $0.44 (basic) per share, a 14.8% drop compared with the $26.3 million or $0.51 (basic) per share for the same
quarter last year.

CASH FLOW UP 6.5%

Cash generated before changes in non-cash working capital items since the beginning of fiscal 2001 amounted to $134.5 million or $2.63 (basic) per share, a 6.5% increase compared with the $126.3 million or $2.55 (basic) per share for the corresponding period last year. The Company used this major inflow of funds to repay $91.1 million of its long-term debt.

DIVIDENDS

The Company's Board of Directors has declared a dividend of $0.09 per common share payable on March 17, 2001 to shareholders of record at March 3, 2001. This dividend relates to the third quarter beginning October 1, 2000 and
ended December 31, 2000.

ABOUT SAPUTO

Saputo Inc. is a North American manufacturer of dairy and grocery products. From its dairy processing operations, Saputo manufactures predominantly Mozzarella, with expertise extending to other Italian cheeses, European cheeses and North American cheeses, as well as fluid milk, yogurt, butter, skim-milk powder, juices and value-added whey by-products such as lactose and whey protein. Some of the Dairy Products Sector's leading brands are "Saputo", "Stella", "Frigo", "Dragone", "Dairyland", "Dairy Producers", "Baxter", "Armstrong", "Caron" and "Cayer". In Canada, Saputo also operates a distribution network where it markets a wide variety of imported cheeses and non-dairy products to complement its cheese offerings. Through its Grocery Products Sector, Saputo manufactures and distributes snack cakes, cookies, fine breads and soups, under such well-known brand names as "Vachon", "Viau-McCormicks", "Grissol" and "Loney's".

Saputo employs over 8,450 people in its workforce. In its Dairy Products Sector, the Company operates 15 plants in the United States, as well as 35 plants and a network of 17 distribution centres in Canada. In the Grocery Products Sector, Saputo operates five plants in Canada along with a direct-to- store delivery network of 53 warehouses and five distribution centres. Saputo shares are listed on the Toronto Stock Exchange under the symbol SAP. For more information, visit the Company's web site at www.saputo.com.

FINANCIAL HIGHLIGHTS

(In thousands of dollars, For the three-month periods except per share amounts) ended December 31

                                          2000          1999          Change
                                             $             $
    _________________________________________________________________________
    Revenues
     Dairy Products sector
       Canada                          153,080       135,790           12.7%
       United States                   276,617       296,412           (6.7%)
    _________________________________________________________________________
                                       429,697       432,202           (0.6%)

     Grocery Products sector            60,438        65,189           (7.3%)
    _________________________________________________________________________
                                       490,135       497,391           (1.5%)
    _________________________________________________________________________
    Earnings before interest,
     depreciation, amortization
     and income taxes
     Dairy Products sector
       Canada                           22,652        20,013           13.2%
       United States                    26,273        36,678          (28.4%)
    _________________________________________________________________________
                                        48,925        56,691          (13.7%)

     Grocery Products sector             8,676         8,876           (2.3%)
    _________________________________________________________________________
                                        57,601        65,567          (12.1%)
    _________________________________________________________________________

    Depreciation of fixed assets        11,960        10,777
    Interest                             8,553        10,661
    Income taxes                        11,480        14,965
    _________________________________________________________________________

    Earnings before amotization
     of goodwill                        25,608        29,434          (13,0%)
    _________________________________________________________________________

    Amortization of goodwill             3,235         3,137           (3.1%)
    _________________________________________________________________________

    Net earnings                        22.373        26,297          (14.9%)
    _________________________________________________________________________
    _________________________________________________________________________
    Net inflow of cash related to
     operations before changes in
     non-cash operating working
     capital items

    Net additions to fixed assets

    Repayment of long-term debt
    _________________________________________________________________________
    _________________________________________________________________________

    PER SHARE

    Earnings before amortization
     of goodwill
      Basic                               0.50          0.58          (13.8%)
      Fully diluted                       0.48
    Net earnings
       Basic                              0.44          0.51          (13.7%)
       Fully diluted                      0.42

    Net inflow of cash related to
     operations before changes in
     non-cash operating working
     capital items
       Basic
       Fully diluted
    _________________________________________________________________________
    _________________________________________________________________________

                                          For the nine-month periods
                                          ended december 31

                                          2000          1999          Change
                                             $             $
    _________________________________________________________________________
    Revenues
     Dairy Products sector
       Canada                          454,033       400,412           13.4%
       United States                   831,294       297,608          (10.4%)
    _________________________________________________________________________
                                     1,285,327     1,328,020           (3.2%)

     Grocery Products sector           188,265        79,333          137.3%
    _________________________________________________________________________
                                     1,473,592     1,407,353            4.7%
    _________________________________________________________________________
    Earnings before interest,
     depreciation, amortization
     and income taxes
     Dairy Products sector
       Canada                           64,890        58,444           11.0%
       United States                    96,660       102,524           (5.7%)
    _________________________________________________________________________
                                       161,550       160,968            0.4%

     Grocery Products sector            29,840        10,369          187.8%
    _________________________________________________________________________
                                       191,390       171,337           11.7%
    _________________________________________________________________________

    Depreciation of fixed assets        36,404        27,556
    Interest                            27,575        26,735
    Income taxes                        40,036        38,837
    _________________________________________________________________________

    Earnings before amotization
     of goodwill                        87,375        78,209           11.7%
    _________________________________________________________________________

    Amortization of goodwill             9,592         7,076           35.6%
    _________________________________________________________________________

    Net earnings                        77,783        71,133            9.3%
    _________________________________________________________________________
    _________________________________________________________________________
    Net inflow of cash related to
     operations before changes in
     non-cash operating working
     capital items                     134,512       126,336            6.5%

    Net additions to fixed assets      (26,182)      (46,370)         (43.5%)

    Repayment of long-term debt        (91,072)     (106,805)         (14.7%)
    _________________________________________________________________________
    _________________________________________________________________________

    PER SHARE

    Earnings before amortization
     of goodwill
       Basic                              1.71          1.58            8.2%
       Fully diluted                      1.65
    Net earnings
       Basic                              1.52          1.43            6.3%
       Fully diluted                      1.47

    Net inflow of cash related to
     operations before changes in
     non-cash operating working
     capital items
       Basic                              2.63          2.55            3.1%
       Fully diluted                      2.54
    _________________________________________________________________________
    _________________________________________________________________________

    BALANCE SHEET ITEMS                   As at december 31
                                          2000          1999
                                             $             $
    Working capital                    178,062       162,833

    Bank loans and overdraft             7,493        13,712
    Current portion of
     long-term debt                     40,000        60,000
    Long term debt                     385,063       471,491
    _________________________________________________________________________
    Total debt                         432,556       545,203

    Shareholder's equity               705,118       601,238
    _________________________________________________________________________