Saskatchewan Wheat Pool Inc.

Saskatchewan Wheat Pool Inc.
Mitsui & Co., Ltd.

Mitsui & Co., Ltd.

May 16, 2006 11:00 ET

Pool Announces Investment by Mitsui

REGINA, SASKATCHEWAN--(CCNMatthews - May 16, 2006) - Saskatchewan Wheat Pool Inc.'s (TSX:SWP) (the "Pool") Board of Directors today announced an investment in Pool common shares by Mitsui & Co., Ltd. ("Mitsui") of Tokyo, Japan.

Mitsui and the Pool have entered into a subscription agreement, pursuant to which Mitsui has agreed to purchase $8 million of common shares of the Pool at a price of $7.6436 per common share on a private placement basis. The subscription agreement has been approved by both companies, and is subject to customary securities regulatory approvals and closing conditions.

"We are very pleased to be assuming an equity position in the Pool. For Mitsui, it reflects our commitment to the Pool and acknowledges the Pool as one of our key suppliers in accessing quality Canadian oilseeds as well as other grain commodities on an ongoing basis. Securing food resources is crucial for Mitsui," said a Mitsui spokesperson.

The Pool has entered into a multi-year supply agreement and will become one of Mitsui's primary suppliers of oilseeds into Japan.

"Our relationship with Mitsui is very important to us. Through this new commitment, we will enjoy even greater access to significant Japanese markets solidifying demand for Pool-originated Canadian oilseeds and other grain commodities," said Pool CEO Mayo Schmidt. "Destination customer relationships are vital in today's highly competitive agri-business industry. We are building relationships and innovative solutions that stimulate demand for our farm customers' products here and throughout the global marketplace."

Partnerships including potential growth opportunities in the grain and agri-food businesses will be considered as part of this alliance in future years. The Pool will use the proceeds of Mitsui's investment for general corporate purposes. The Pool will have approximately 90,250,764 million shares outstanding once the transaction closes.

Mitsui, together with its subsidiaries and associated companies, is one of Japan's largest general trading companies. Mitsui trades in a diverse range of goods and is also engaged in international infrastructure and other major projects. Mitsui undertakes sales and marketing, import and export, and international trading and manufacturing in business segments, including metal products and minerals, machinery, electronics and information, chemicals, energy, and foods and retail services.

Saskatchewan Wheat Pool Inc. 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 common shares are listed on the Toronto Stock Exchange under the symbol SWP.

Contact Information

  • Saskatchewan Wheat Pool
    Colleen Vancha
    Vice-President, Investor Relations & Communications
    (306) 569-4782
    Saskatchewan Wheat Pool
    Susan Cline
    Communications & Media Relations
    (306) 569-6948
    Mitsui & Co., Ltd.
    Manager, Corporate Communication Division
    Kaoru Shiraki