Winnipeg, Manitoba
March 11, 2002

For the first time in several years, Linola is offering farmers better returns than flax or canola.

"Linola is currently showing better returns per acre than any other oilseed," says Bevyn Litke, Agricore United's oilseeds trader. "That's primarily a result of steady demand from the European market."

Linola, a low linolenic flax, produces an oil similar to sunflower oil used mainly for margarine production. When Linola was first introduced in 1994, markets were very strong and acreage was high as a result. But due to increased volatility in the edible oilseed markets relative to industrial oils, the acreage of Linola tapered off. Due to a world shortage of sunflower oil, Linola is again set to provide higher profits so growers are encouraged to lock in prices early.

"The return per acre has been improving, due to stronger basis levels on Linola compared to other oilseed alternatives," Litke explains. "Given present futures and basis levels, Linola is the best oilseed alternative."

Linola is part of Agricore United's identity-preserved (IP) program, along with malt barley, wheat and specialty oil canola contracts. Grown under production contracts, an IP variety is segregated from seed to end-use to maintain strict quality control. IP contracting allows Agricore United to match acreage with end use demand, guaranteeing producers markets for their crop. Agricore United is Western Canada's industry leader in IP cropping options.

In terms of varieties, Proven Seed's Linola 1084 is a high-yielding, medium-late maturing variety that produces a high quality, polyunsaturated oil for the edible oil market. Recently, a new variety of Linola was recommended for registration. Limited quantities of Linola 2047 will be available for the upcoming growing season.

"We are focusing our attention on breeding varieties with high yield, increased oil content and even higher protein to offer farmers new marketing and production opportunities," says Neil Arbuckle, manager of Agricore United's seed business. "Seed supply for Linola is somewhat limited this year so producers should contract early to secure their acres."

Agricore United is Western Canada's leading farmer-directed agri-business. The prairie-based company is diversified into sales of crop inputs and services, grain merchandising, livestock production services and farm business communications. Agricore United's shares are publicly traded on the Toronto Stock Exchange under the symbol "UGG".

Linola(TM) is a registered trademark of the Commonwealth Scientific & Industrial Research Organization.