October 24, 2002

Saskatchewan Wheat Pool announced today that it has signed amendments to its credit agreement with its banks that provide operating lines to November 30, 2003 and a deferral of principal repayments for 12 months.

As part of the financing arrangement, the Pool and its banks have established new financial covenants aligned with the company's expectations for Fiscal 2003. The total availability under all of the bank facilities remains unchanged and satisfies the requirements of the Pool's business plan. The Pool's financing arrangements include securitization and a new purchase money security facility that funds the company's acquisition of non-Board grain inventories.

"Two years ago, we set a course and we have met our commitments," said Pool CEO Mayo Schmidt. "Our primary objective has been to reduce debt and last year alone, we permanently repaid $177 million. With two consecutive years of drought, it has been necessary to identify new strategic alternatives to right-size our debt. We must hold our course and implement solutions that will permanently strengthen our balance sheet and provide the foundation to capitalize on our state-of-the-art infrastructure and strategic pipeline."

Schmidt said the first phase of the renewal strategy was securing the bank agreement that provides the company with the funding necessary to build upon its competitive strengths and meet its ongoing operational requirements. In the second phase, the company will sit down with its two principal groups of senior secured debt holders, the banks and holders of $300 million of Medium Term notes, to develop a consensual plan to restructure their debt. The Pool believes it can complete the restructuring in the next few months, and has agreed, as part of the bank arrangement, to do so by January 31, 2003. The Pool has retained BMO Nesbitt Burns to assist in the process.

"The continued support for this company by our stakeholders is a recognition of the underlying value of our assets. The Pool will have eliminated $70 million in costs through streamlining and productivity
enhancements and has successfully grown market share in a very competitive environment. We implemented innovative financing solutions and will continue to focus on quality service and leading edge marketing programs. The actions we take over the next several months will complete Saskatchewan Wheat Pool's renewal."

The Pool will announce its year-end financial results next week.

Saskatchewan Wheat Pool is a publicly traded agribusiness headquartered in Regina, Saskatchewan. Anchored by a prairie-wide grain handling and agri-products marketing network, the Pool channels prairie production to end-use markets in North America and around the world. These operations are complemented by value-added businesses and strategic alliances, which allow the Pool to leverage its pivotal position between prairie farmers and destination customers. The Pool's Class B shares are listed on the Toronto Stock Exchange under the symbol SWP.B.