AGRI-FOOD EQUITY FUND INVESTS IN THOMSON MEATS OF MELFORT

Released on August 11, 1997

Agriculture and Food Minister Eric Upshall today announced that

Saskatchewan Agriculture and Food's Agri-Food Equity Fund (AFEF) will

invest $300,000 in TML Foods Inc. (Thomson Meats) of Melfort to

provide additional working capital.



"This investment will strengthen the company's cash position and will

support Thomson Meat's continued market expansion and export program,"

Upshall said.



In 1996, TML Foods Inc. undertook an estimated $4 million expansion of

its federally inspected meat processing and packaging plant. This

expansion was supported in part by the Agri-Food Equity Fund, which

invested $500,000 and by the Melfort and District Community Bond

Corporation, which invested $272,800. Other financing for the

expansion project was provided by the Canadian Imperial Bank of

Commerce.



The expansion tripled the company's production capacity which allowed

it to expand export sales to the Pacific Rim.



"This investment represents the diversification of primary production

in rural Saskatchewan," Upshall said. "This is another example of how

value-added initiatives can generate valuable new markets for producer

commodities."

"We appreciate the continued support of the Agri-Food Equity Fund

and look forward to a successful partnership," said Lorne

Thomson, president of TML Foods Ltd.



"The Government of Saskatchewan is a firm believer in developing

diversified agri-food businesses in the province," Upshall said.

"The Agri-Food Equity Fund is an important player because it

creates sensible investment partnerships that contribute to the

expansion of the value-added sector of agriculture."



AFEF has made 11 investments in Saskatchewan since the fund was

established in 1994. Each investment carries a maximum eight

year term. The Government of Saskatchewan committed $20 million

over five years to expand the value-added sector of the

agriculture and food industry. About $16 million remains to be

invested over the next four years. Revenues generated from

investments are returned to the fund for reinvestment in further

value-added opportunities.



-30-



For more information, contact:



Lyle Bolen

Agri-Food Equity Fund

Agriculture and Food

Saskatoon

Phone: (306)933-7682



Lorne Thomson,President

TML Foods Ltd.

Melfort

Phone: (306)752-2802 or

1-800-667-0714