ORGANIC FOOD PROCESSOR OPENS NEAR REGINA

Released on June 22, 2000

FarmGro Organic Foods Inc. has begun production at its $12 million flour mill

and grains processing plant near Regina.



The company's goal is to become North America's largest producer of organic

wheat flours, durum semolina and specialty grains.



FarmGro is located on a 15-acre site east of Regina in the RM of Sherwood,

between Highways 1 and 33. It will employ 18 to 25 people and produce organic

wheat flours and durum, with an initial milling capacity of close to 16,000

tonnes. It will also clean about 18,000 tonnes of organic grains and seeds

annually and sell them internationally.



"FarmGro will make Saskatchewan a leader in the organic food processing

industry," Crown Investments Corporation Minister John Nilson said. "The

market for organic food products has grown significantly in the past few years

and that trend is expected to continue. CIC is proud to be a partner in this

exciting new venture."



CIC has invested $4.4 million in FarmGro through equity and a term loan. Other

investors include: private Saskatchewan entrepreneurs; a Japanese company which

trades in food and other products; a Czech supplier of flour milling equipment;

the Saskatchewan Government Growth Fund, through one of its immigrant investor

funds; a federal/provincial partnership agreement on water-based economic

development; Western Economic Diversification; and the Farm Credit

Corporation. FarmGro has also issued a share offering to allow organic

producers and the public to invest in the company.



"We are very excited about the prospects for this company," FarmGro President

and CEO Gerry Liski said. "We hope to eventually provide private labeling and

branding of retail sized bags of flour, grains, seeds, organic pasta, frozen

dough bakery products, soup mixes and frozen entrees. We want FarmGro to

become an organic food processing village for one-stop shopping for our global

customers."



"FarmGro will also help diversify our agriculture industry by encouraging more

organic farming in Saskatchewan," Nilson said. "Organic production is one way

in which Saskatchewan farmers can become more competitive in world markets, so

having a company like FarmGro in our province will be a real boost to our

producers."



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For more information, contact:



Karen Schmidt Gerry Liski

Acting Executive Director, Communications President & CEO

Crown Investments Corporation FarmGro Organic Foods Inc.

Regina Regina

Phone: (306) 787-5889 Phone: (306) 751-2440