Regina, Saskatchewan
March 20, 2003

Saskatchewan Wheat Pool today announced second quarter results that reflect the impact of last season's drought on the agricultural industry.

The Pool recorded consolidated sales and operating revenues of $501 million in the second quarter of Fiscal 2003 bringing the year-to-date total to $970 million. Six-month sales were down 17 per cent from the comparable period last year after excluding results from companies sold in Fiscal 2002. The reduction reflects the impact of the drought and the unusually wet, cold harvest, which, together, caused a significant reduction in grain volumes and a severe shortage of quality commodities available for processing. Can-Oat Milling, the company's oat processing affiliate, and the Pool's retail agri-product operations posted sales increases of 17 per cent and 7 per cent respectively, partially offsetting the decline.
 
Second quarter EBITDA, or earnings before interest, securitization, taxes, depreciation and amortization, was a loss of $3.3 million. For six months, the EBITDA loss was $2.2 million, compared to earnings of $25.7 million last year after excluding divested company contributions

The second quarter operating loss, prior to interest, securitization and taxes (EBIT) was $16.2 million compared to a loss of $1.1 million in the second quarter last year. Interest and securitization costs for the quarter were $13.6 million and for the six months were $26.7 million, down 31 per cent or nearly $12 million from the previous year due to substantially lower debt levels at January 31, 2003.

The net loss for the quarter was $18.8 million or $0.50 per share, compared to a loss of $26 million in the second quarter last year, which included after-tax provisions of $13.2 million. For the first six months of Fiscal 2003, the net loss was $34.4 million or $0.92 per share, compared to $38.4 million, or $1.03 per share. Last year's result included $9.9 million of after tax provisions.

The Pool's primary shipments in the quarter were 1.2 million tonnes for a total to-date of 2.8 million tonnes, or 32.7 per cent behind the previous year. The Pool performed relatively well in spite of a 45 per cent drop in wheat and barley shipments prairie-wide and a 56 per cent drop from Saskatchewan. As expected, volumes through the Pool's port terminal operations also reflected drought-related volume declines along with the corresponding lack of higher-valued export commodities available to the industry.

Sales for the Agri-products segment for the second quarter were up 22.7 per cent, due to stronger fertilizer sales and higher nitrogen prices, along with increased crop protection product and seed sales. Overall margins were comparable, however, earnings from the segment were lower than last year primarily reflecting interest revenue that is no longer generated as a result of the Pool outsourcing its agri-products financing program.

Sales in the Agri-food Processing segment reflected substantial declines at Prairie Malt partially offset by sales gains at Can-Oat. Results reflect the lack of quality malt barley in Western Canada due to the drought, which forced Prairie Malt to source their raw commodities from other regions to meet customer demands. At Can-Oat, results were on par with last year, despite the poor oat quality in its primary growing regions.

"Operating results for the quarter are in line with expectations and reflect the severe production declines coming off last year's harvest," said CEO Mayo Schmidt. "We remained focused on maintaining our costs at minimum levels and, as a result, saw core operating, selling and administration costs decline by $16.2 million during the period.

"The business environment will remain challenging for the remainder of the year, particularly in our grain operation," added Schmidt. "However, with the completion of our capital restructuring initiative on March 14th and the significant moisture recovery throughout much of the Prairies, we look forward to improved growing conditions and a significant earnings recovery in Fiscal 2004."

The company's second quarter results do not reflect the impact of its recently completed capital restructuring program. The Pool is investigating the applicable accounting treatment of the Convertible
Subordinated Notes and expects to reflect that treatment in its third quarter financial statements. As a result, regular conference calls with the investment community and media will resume in the third quarter.
 
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.