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Saputo Inc. Announces an Agreement to Acquire the Activities of Alto Dairy Cooperative in the US

Posted on: Tuesday, 29 January 2008, 09:00 CST

Saputo Inc. (TSX: SAP) announces today that it has entered into an agreement to acquire the activities of Alto Dairy Cooperative (Alto), based in Waupun, Wisconsin. This agreement, which has been approved by Alto's board of directors, is subject to the approval of the cooperative's members at a meeting to be held on February 27, 2008.

The total consideration of US$160 million on a debt-free basis will be paid in cash by drawing on available lines of credit. The transaction is subject to the usual conditions (including approval by the US Anti-Trust authorities) and is expected to close in the course of March 2008.

Alto produces Italian- (mozzarella and provolone) and American-style cheeses (Cheddar varieties, Monterey Jack, Muenster, Fontina and Gouda), as well as whey products, which are marketed nationwide under a variety of brand names and private labels.

Alto has sales of US$378 million(1) and EBITDA(2) of US$19.6 million(3). It operates 2 plants respectively in Waupun and Black Creek, Wisconsin with a total of 467 employees.

This strategic transaction will enable Saputo Cheese Division (USA) to expand its business and represents a major step in its goal to achieve a stronger presence in the US.

(1) For fiscal 2007 ending June 30 2007.

(2) Earnings before interest, income taxes, depreciation and amortization

(3) For fiscal 2007 ending June 30 2007, on an adjusted basis (to take into consideration certain non-recurring expenses).

The Company

Saputo, a whole world to discover. With its distinctive array of products and its commitment to growth, Saputo continues to explore and seize new opportunities while maintaining the best of tradition. Through product innovations, global expansion and unwavering employee dedication, Saputo produces, markets and distributes products of the highest quality. Saputo is one of the top twenty dairy processors in the world, the largest dairy processor in Canada, among the top five cheese producers in the United States, the third largest dairy processor in Argentina and the largest snack-cake manufacturer in Canada. Success stems from the passion and expertise of the 8,900 men and women who work in its numerous locations worldwide. Well-known brands such as Saputo, Alexis de Portneuf, Armstrong, Baxter, Dairyland, Danscorella, De Lucia, Dragone, DuVillage de Warwick, Frigo, Kingsey, La Paulina, Nutrilait, Princesse, Ricrem, Sir Laurier d'Arthabaska, Stella, Treasure Cave, HOP&GO!, Rondeau, and Vachon have earned the trust of consumers in over thirty countries. Saputo Inc. is a public company whose shares are traded on the Toronto Stock Exchange under the symbol SAP.

 Contacts: Saputo Inc. Manon Goudreault Director, Communications 514-328-3377  

SOURCE: Saputo Inc.

Source: MARKET WIRE

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