Agricore United

Agricore United

May 15, 2006 09:36 ET

Sale of Agricore United Vancouver Terminal Proceeds

WINNIPEG, MANITOBA--(CCNMatthews - May 15, 2006) - Agricore United (TSX:AU.LV) announced today that Grant Thornton LLP of Vancouver, British Columbia, has been appointed Trustee to divest the former United Grain Growers Limited grain terminal in Vancouver, British Columbia (the "Vancouver Terminal"), in accordance with the terms of a consent agreement between Agricore United and the Commissioner of Competition dated October 17, 2002 (the "Consent Agreement").

On August 12, 2005, Agricore United filed an application with the Competition Tribunal seeking an order pursuant to section 106 of the Competition Act rescinding the Consent Agreement, which was entered into in connection with the merger of United Grain Growers Limited and Agricore Cooperative Ltd. to form Agricore United and which required the Company to divest the Vancouver Terminal. Agricore United brought the application following changes in the circumstances that led to the making of the Consent Agreement, which the Company believed, among other things, rendered the Consent Agreement unnecessary and ineffective in achieving its intended purpose.

Agricore United recently advised the Tribunal that it had learned that certain industry participants no longer supported a prior arrangement that was being advanced by the Company as part of an industry solution in connection with the section 106 application. As a result, the Company has withdrawn the application and supported the matter being referred to the Trustee to determine whether the Trustee can divest the Vancouver Terminal in a manner that meets the objectives of the Consent Agreement. The Trustee is expected to commence its process immediately.

The Company does not expect either this process or any potential disposition of the terminal to have a material impact on its ability to handle its grain originations in the Port of Vancouver.

Agricore United is one of Canada's leading agri-businesses with headquarters in Winnipeg, Manitoba, and extensive operations and distribution capabilities across western Canada. Agricore United uses its technology, services and logistics expertise to leverage its network of facilities and connect prairie-based agricultural customers to domestic and international customers and suppliers. The company's operations are diversified into sales of crop inputs and services, grain merchandising, livestock production services and financial services. Agricore United's common shares are traded on the Toronto Stock Exchange under the symbol "AU.LV".

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