Saskatchewan Wheat Pool, Can-Oat Milling Join Forces

Business Wire, August 6, 1996

REGINA, SK--(BUSINESS WIRE)--Aug. 6, 1996--Saskatchewan Wheat Pool (TSE:SWP.B) is purchasing a 13.25 percent equity interest in Can-Oat Milling of Portage la Prairie, Manitoba.

The Pool is also forming a long-term supply agreement with Can-Oat, which is Canada's largest oat processor and oat products exporter.

"This partnership is another step in our value-added, diversification strategy. It puts us in a new business and gives our farm customers another reason to deliver their oats to the Pool," said Pool Chief Executive Officer Don Loewen.

Can-Oat Chief Executive Officer Mike Maschek said: "This strategic alliance with Saskatchewan Wheat Pool secures our long-term raw oat supply requirements to meet the rapid growth of our milling operation. The alliance expands Can-Oat's prairie pool relationships and complements the relationship established with Manitoba Pool Elevators in 1993. Can-Oat now has access to over 500 elevators sourcing oats and looks forward to developing a mutually beneficial relationship with Saskatchewan Wheat Pool."

Other Can-Oat partners include Can-Oat's management group and two holding companies -- Can-Oat Holdings B.C. Ltd. and A.R. Holdings -- owned by entrepreneur Arthur Block.

BACKGROUNDER

-- Can-Oat's technologically advanced milling operation, located in Portage la Prairie, Manitoba, produces a full line of premium quality, commercial oat products customized to fit the specific applications of customers. Oat bran, oat flour, rolled oats and oat groats comprise Can-Oat's product line.

-- Can-Oat services an international customer base and is situated in the geographical centre of North America. Products are sold to industrial customers in Canada, the U.S. and other export markets for further packaging, processing and resale.

-- Can-Oat's plant has an annual capacity of 125,000 tonnes and produces 75,000 tonnes of oat products.

-- Saskatchewan Wheat Pool is Canada's largest publicly-traded agri-food co-operative. In addition to being Canada's largest grain handler and Saskatchewan's largest company, the Pool is also involved in canola crushing, flour milling, food processing, malting barley, ethanol production and livestock marketing.

CONTACT: Saskatchewan Wheat Pool

Don Loewen, 306/569-4806

or

Can-Oat Milling

Mike Maschek, 204/857-9700