Saskatchewan Wheat Pool Inc.

Saskatchewan Wheat Pool Inc.

February 21, 2007 09:33 ET

Pool Secures Supply Agreement With North America's Largest Wheat-Based Ethanol Facility

REGINA, SASKATCHEWAN--(CCNMatthews - Feb. 21, 2007) - Saskatchewan Wheat Pool Inc. (TSX:SWP) ("Pool") confirmed it has signed a two-year supply agreement with Terra Grain Fuels Inc. ("TGF)", North America's largest wheat-based ethanol facility currently under construction at Belle Plaine, Saskatchewan.

The Regina-based ethanol company, which recently merged with Universal Energy Group Ltd., will require approximately 400,000 tonnes of feed quality wheat per year.

"This is a great opportunity for the Pool and for the bottom line of our producer customers interested in growing ethanol-friendly wheat varieties. We will be working with TGF to procure grain and provide logistical support for their supply requirements. We will also continue to look at additional ventures as the renewable fuels industry continues to flourish in Western Canada," said President and CEO Mayo Schmidt.

TGF's plant will produce 150 million litres of ethanol annually and approximately 164,000 tonnes of dried distillers' grains each year. Ethanol is a clean-burning, renewable fuel made from agricultural commodities such as wheat and corn. Distillers' grain is a co-product of wheat and corn-based ethanol used as animal feed. The plant is due for completion in late 2007.

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.

Forward Looking Information

This release contains forward looking statements that involve certain risks and uncertainties which could cause actual results to differ materially from future results expressed or implied by such statements. Important factors that could affect these statements include, without limitation, weather conditions; producer's decisions regarding total planted acreage, crop selection, and utilization levels of farm inputs such as fertilizers and pesticides; Canadian grain export levels; changes in government policy and transportation deregulation; world agricultural commodity prices and markets; changes in competitive forces including pricing pressures; and global political and economic conditions, including grain subsidy actions of the United States and European Union.

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