Agricore United sales of crop nutrients, crop protection products and seed increased by $13 million (or 22 percent) in the first quarter of the year compared to the same time last year. First quarter Crop Production Services sales are typically less than 10 percent of annualized sales. Nonetheless, this year¡¦s increase, coupled with a 22 percent increase in unrecorded prepaid sales over last year, signals farmer optimism for the upcoming growing season. Grain shipments increased by 10 percent for the three months ending January 31, 2005 with Agricore United handling 2.5 million tonnes, or 35 percent of industry grain shipments. Livestock feed sales also increased by 34,000 tonnes or 15% compared to 2004.

¡§The good news is that people in the industry, especially farmers, appear to be optimistic about the coming season,¡¨ says Brian Hayward, Chief Executive Officer. ¡§We know moisture levels are good going into the planting season, and already many of Agricore United¡¦s canola, Linolafn"¥ and wheat seed varieties are fully subscribed.¡¨ Hayward says that improvements in the livestock services side of the business are also encouraging given the continuing uncertainty of U.S. trade sanctions.

Gross profit and net revenue from services for Grain Handling and Livestock feed sales increased $9 million or 15 percent over 2004 due to both increased volumes and improved margins. Livestock Services gross profit also reflected improved market conditions for swine sales in recent months. Retail fertilizer tonnes sold in the quarter (and constituting over 90 percent of Crop Production Services sales) increased by 6 percent at improved margins. However, a change in accounting estimate implemented by the Company in 2005 affected the timing of gross profits realized from its fertilizer joint venture and resulted in lower gross profits in the first quarter, that will be offset by an equivalent increase in gross profits in the second and third quarters as fertilizer sales to retail customers are completed. As a result, consolidated gross profit and net revenue from services increased marginally to $81.3 million for the quarter ended January 31, 2005.

Operating, General and Administrative (OG&A) expenses increased over the same quarter last year by $13 million, including the effect of a $4.5 million property tax recovery which reduced expenses in January last year. Changes in timing of certain expenses in the current year, annualization of costs such as insurance programs and an increase of about three percent in underlying costs also contributed to higher expenses in the first quarter. After adjusting for last year¡¦s property tax recovery, the Company expects any increase in overall OG&A expenses for fiscal 2005 to increase consistent with the rate of inflation. The higher expense for the first quarter, however, resulted in a net loss of $19.5 million or $0.44 per share for the period, $5.9 million higher than the loss of $13.6 million or $0.31 per share for the first quarter of 2004.