Regina, Saskatchwan
December 13, 2002

Severe weather conditions in the first three months of Fiscal 2003 continued to wreak havoc on the western Canadian agricultural industry. Low carry-over and dramatic production declines, followed by excess moisture and freezing temperatures delayed harvest and severely reduced the quality of grains and oilseeds available to the industry, driving down Saskatchewan Wheat Pool's volumes and sales.

The Company recorded consolidated sales and operating revenues in the first quarter of Fiscal 2003 of $469.5 million, down 11 per cent from the first quarter of 2002 after excluding sales from companies that were sold last year.

First quarter EBITDA, or earnings before interest, securitization, taxes, depreciation and amortization, was $1.2 million, down from $17.0 million in the first quarter last year. Excluding the impact of divested companies, the reduction is primarily related to low grain volumes, coupled with lower earnings from the Company's pork production operations.

The first quarter operating loss, prior to interest, securitization and taxes (EBIT) was $11.8 million compared to a loss of $0.8 million in the first quarter last year, prior to a gain on sale of the company's livestock affiliate. The net loss for the period was $15.6 million or ($0.42) per share, slightly better than the comparable $15.7 million loss last year prior to the gain on sale.

Primary grain shipments for the quarter were 1.5 million tonnes, down 22 per cent from 2.0 million tonnes in the first quarter of last year reflecting reduced supplies and a significant decline in exports during the period. The Pool's wholly owned port terminals volumes were 0.5 million tonnes, down from 1.1 million tonnes in the first quarter last year. Dramatic declines in the export of wheat (55%), barley (42%) and canola (30%) in the quarter, coupled with reduced volumes associated with the labour dispute in Vancouver primarily contributed to the reduction.

The Pool's Agri-products segment generated stronger fertilizer sales and similar crop protection product sales compared to the previous year's period, despite weather events that cut short the regular fall application period. Equipment sales were down because the Pool is rationalizing many of its product lines. In addition, bin sales slowed substantially due to reduced demand for on-farm storage resulting from the drought.

The Pool's Agri-food segment generated sales increases of 23 per cent, after excluding last year's sales by divested companies, but saw a $0.2 million decline in EBITDA as wet harvest conditions reduced crop quality and delayed the availability of an already-depleted supply of grain. At the company pork operations, high feed cost and low hog prices severely reduced margins, overshadowing improved contributions from the Pool's feed and aquaculture operations.

"Our core operations have performed well in this difficult environment," said Pool CEO Mayo Schmidt. "Our employees have demonstrated their commitment to quality, customer service and marketing excellence. We recently received two of the three Quality First awards presented by the Canadian Wheat Board. Clearly, our model is working. Now it's time for Mother Nature to co-operate."

Despite the challenging effects of the weather, the Pool remained committed to its key objectives:

• The company's western Canadian market share topped 23 per cent in the first three months this year, a significant accomplishment given the severity of the drought in its home province.
• In the first quarter, the Pool's grain, agri-products and head office operations cut costs by $7.1 million in the first three months relative to the same period a year ago.
• Interest and securitization cost declined nearly $9 million due to the company's focus on debt reduction over the past 30 months. In fact, balance sheet debt was $210 million lower at October 31, 2002 than on the same date a year ago.
• Operationally, 95 per cent of the Pool's shipments moved in unit trains of 25 or more cars, up from 90 per cent last year. The Pool utilized 50- or 100-car unit trains for 74 per cent of its shipments, which compares favorably to 66 per cent last year; and
• The Pool is engaged in restructuring efforts that are ongoing.

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.