Saskatchewan Wheat Pool Inc.
TSX : SWP

Saskatchewan Wheat Pool Inc.

March 03, 2005 15:48 ET

Pool Announces New Grain Volume Insurance


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: SASKATCHEWAN WHEAT POOL

TSX SYMBOL: SWP.NV.B

MARCH 3, 2005 - 15:48 ET

Pool Announces New Grain Volume Insurance

REGINA, SASKATCHEWAN--(CCNMatthews - March 3, 2005) - Saskatchewan Wheat
Pool (TSX:SWP.NV.B) today announced a new grain volume insurance program
with coverage for fiscal 2006. The program was developed with the
assistance of Toronto based reinsurance brokerage Aon Re Canada Inc., a
unit of Aon Corporation.

The Pool's new program is designed to improve earnings and cash flow
stability within the company's core business of grain handling in years
of poor grain volumes. Coverage under the new grain volume insurance is
based on production of the six major crops in Western Canada (wheat,
barley, canola, oats, peas and flaxseed) as reported by Statistics
Canada. The program provides a maximum payment of $30 million. Partial
payments will be triggered if production falls by more than 20 per cent
and full pay out will occur if production drops by approximately 45 per
cent.

"Our new coverage will better position the Pool to maintain cash flows
at levels that will adequately prevent financial deterioration for the
company if the industry experiences low production due to weather or
other unpredictable events. The program complements what we are doing
overall as a company to secure the future of Saskatchewan Wheat Pool for
the benefit of our shareholders and our customers," said Wayne
Cheeseman, Saskatchewan Wheat Pool's Chief Financial Officer.

Headquartered in Chicago, Illinois, Aon is a world leader in risk
management, insurance and reinsurance brokerage, and human capital
consulting services. Aon is a publicly traded company with its shares
listed on the New York Stock Exchange.

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 agri-food processing 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.NV.B.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Saskatchewan Wheat Pool
    Susan Cline
    Investor Relations and Communications
    (306) 569-6948
    Website: www.swp.com