AGRI-FOOD EQUITY FUND INVESTS $1 MILLION IN AG GROWTH INDUSTRIES INC.

Released on January 6, 1999

Agriculture and Food Minister Eric Upshall today announced the

Agri-Food Equity Fund (AFEF) has invested $1 million in Ag Growth

Industries Inc. of Swift Current to help it purchase the short-line

farm implement manufacturing company Wheatheart of Saskatoon.



"The agricultural implement manufacturing sector in Saskatchewan has

created almost 5,000 jobs and, in recent years, has generated products

worth about a half-billion dollars annually to the world marketplace,"

Upshall said.



"The agricultural implement manufacturing industry has proved its

value to Saskatchewan's economy and its importance to the

diversification of Saskatchewan's agricultural economy."



Upshall said AFEF's investment in Ag Growth Industries Inc. is an

investment, not a grant. "It is a commercial business investment and

AFEF expects a reasonable return on its investment."



Ag Growth Industries Inc., a Saskatchewan company traded publicly on

the Alberta Stock Exchange, acquires small short-line manufacturing

companies with complimentary product lines. Through Ag Growth

Industries, the smaller companies are able to take advantage of volume

buying discounts of similar raw materials and to capitalize on

co-operative, co-ordinated marketing strategies using established

distributors.



Wheatheart's primary market for its self-propelled grain auger

kits, hydraulic post pounders and transfer augers was Western

Canada. Rob Stenson, president of Ag Growth Industries Inc.,

says that has changed.



"Since the acquisition of Wheatheart in mid-May, our team has

secured distribution agreements with four new distributors in

Eastern Canada and in the American mid-west and west coast.

These territories were previously untapped for Wheatheart."



Stenson said the Agri-Food Equity Fund's investment is

facilitating export-driven job creation in Saskatchewan.



"We are confident that AFEF and other investors will achieve a

superior return on their investment over the next five years."



AFEF assists innovative small and start-up companies in the

value-added agriculture and food industry with opportunities to

commercialize or explore marketing opportunities.



Since it was established in 1994, AFEF has approved investments

for 17 projects. The Government of Saskatchewan committed

$20 million to the fund over five years and each investment

carries a maximum eight-year term. Revenues generated from

investments are returned to AFEF for reinvestment.



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For more information, contact:



Dave Gabruch Rob Stenson

Branch Manager President

Agri-Food Equity Fund Ag Growth Industries Inc.

Saskatoon Swift Current

Phone: (306) 933-7682 Phone: (306) 773-7779

or (403) 237-9956 (Investor Office)