Community Pork Ventures Inc.

Community Pork Ventures Inc.

May 24, 2005 17:31 ET

Community Pork Ventures Inc.: Media Release

REGINA, SASKATCHEWAN--(CCNMatthews - May 24, 2005) - Community Pork Ventures Inc. ("CPV") announced today that the initial order dated December 17, 2004 granting it and its 16 subsidiary hog production companies protection from creditors under the Companies' Creditors Arrangement Act ("CCAA") in the Court of Queen's Bench for Saskatchewan has been extended from May 17, 2005 to June 20, 2005.

This extension has been granted to CPV and its subsidiaries in order to give them time to complete their work on a viable restructuring plan. It will also allow time for further negotiations and discussions with and to obtain more definitive, final and binding offers from those parties which submitted expressions of interest pursuant to a parallel sales process in which KPMG was authorized by the Court on February 17, 2005 to contact and receive expressions of interest from qualified purchasers and investors interested in pursuing the purchase of the assets or shares of or making other investments in CPV and its subsidiaries. No offer can be accepted without Court approval.

The Court also granted a claims procedure order pursuant to which procedures were established to allow creditors of CPV and its subsidiaries to prove their claims and to resolve any disputes where claims made are not accepted by CPV and its subsidiaries as being due and owing to such creditors. Claims must be submitted in writing by June 30, 2005.

During the CCAA stay of proceedings, CPV and its subsidiaries have continued to operate in the ordinary course. During this period, the subsidiaries have been more profitable than had been previously projected due to such factors as higher hog prices, lower feed prices, and as a result of cost savings introduced by CPV and its subsidiaries over the past number of months beginning to have a positive impact on operations. To the end of March, 2005, the subsidiaries had a combined net income of approximately $2.42 million for the current fiscal year which commenced on September 1, 2004. Their financial performance could have even been better but for the substantial restructuring costs incurred which in the current fiscal year to the end of March, 2005, was approaching almost $3 million.

CPV also announced today that at the end of April, 2005, Robert Fisher, a certified management accountant and a member of the Board of Directors of CPV who is familiar with CPV and its subsidiaries and with the hog industry, was appointed Chief Financial Officer of CPV on contract for an interim basis until a new Chief Financial Officer can be hired.

John Hicke, President and CEO of CPV stated: "Since the initial order was granted for a stay of proceedings under CCAA on December 17, 2004, we have been working diligently to develop a viable restructuring plan and the Board of Directors and management of CPV are committed to completing a successful restructuring. We are also committed to improving our financial and operational reporting and have taken measures to address this with the appointment of a new CFO. We expect to finalize a restructuring plan which will address the needs of our Senior Lenders as well as the needs of CPV and its subsidiaries and other stakeholders in the near future. Although we recognize that the development of a restructuring plan which will find acceptance by all of our creditors will be complex and challenging, we still believe that it is possible to develop a restructuring plan which will be supported by and benefit all of our stakeholders and yield better results than the parallel sales process for all concerned."

CPV is one of Western Canada's leading pork production companies. It, indirectly through subsidiaries, owns and operates twelve 600 sow farrow-to-finish, and four 1,200 sow farrow-to-finish, pig production units located across Saskatchewan and Manitoba, producing, in the aggregate approximately 250,000 pigs annually.

Certain information included in this press release is forward-looking and is subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Forward-looking information typically contains statements using words such as "anticipate", "believe", "expect", "plan", "intend" or similar words suggesting future outcomes, statements that actions, events or conditions "may", "would", "could" or "will" be taken or occur in the future, or statements regarding outlooks, estimates, expectation, beliefs, plans, objectives, assumptions, or statements about future events.

Readers are cautioned not to place undue reliance on forward-looking statements. By their nature, forward-looking statements involve numerous assumptions, risks, uncertainties and other factors that contribute to the possibility that the predicted outcome will not occur. Community Pork undertakes no obligation to publicly update or revise any forward-looking statement in light of new information, future events, or changes in conditions.

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