Premium Brands Income Fund

Premium Brands Income Fund

September 22, 2005 09:00 ET

Premium Brands Income Fund Resolves Outstanding Dispute with Olymel S.E.C.

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 22, 2005) - Premium Brands Income Fund (TSX:PBI.UN) announced today that it has amicably resolved its outstanding legal dispute with Olymel S.E.C. As part of the resolution, Premium Brands entered into a long term supply agreement with Olymel whereby Premium Brands has the option to purchase certain fresh pork raw material inputs at defined market based prices.

Neither the resolution of the legal dispute nor the terms of the new supply agreement are expected to have a material impact on Premium Brands' operating results.

"The resolution of our legal dispute with Olymel, combined with our new supply agreement, highlights our strategy of forming long term strategic alliances in order to reduce future capital expenditure requirements and mitigate supply related business risks," said Mr. George Paleologou, President of Premium Brands. "Looking forward we are on track to achieving our targeted earnings and cash flows, and are pleased with how our business plan is progressing."

Premium Brands is a leading manufacturer and marketer of a broad range of branded specialty food products and has manufacturing facilities in British Columbia, Alberta, Saskatchewan, Manitoba and Oregon. In addition, it operates proprietary food distribution networks through which it distributes both its own products and those of third parties.

FORWARD LOOKING STATEMENTS: Statements made by Premium Brands Income Fund that look forward in time or include anything other than historical information, involve risks and uncertainties that may affect Premium Brands' actual results of operations. For additional details on these risks and uncertainties please refer to Premium Brands' Prospectus dated July 15, 2005 which is filed electronically through SEDAR. It and additional information on Premium Brands is available online at Premium Brands disclaims any intention or obligations to revise forward-looking statements whether as a result of new information, future developments, or otherwise.

Contact Information

  • Premium Brands Income Fund
    George Paleologou
    (604) 656-3100
    Premium Brands Income Fund
    Will Kalutycz
    (604) 656-3100