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Maple Leaf Acquires Schneider’s Winnipeg Fresh Pork Operations

TORONTO, ON  – Maple Leaf Foods announced
today that it has reached an agreement with Schneider Corporation (Schneider)
to acquire Schneider’s fresh pork operations in Manitoba. The transaction is
expected to close in late February 2001, subject to regulatory approvals.

The acquisition involves two Winnipeg plants; a
slaughter facility on Marion Street that processes 18,000 hogs per week and a
new cut plant built for $30 million in the mid-1990s located on Warman Road.
The Warman Road facility further processes the hogs from the Marion Street
plant plus 14,000 hogs per week, supplied by third-party facilities, into
value-added pork products.

The plants operate profitably, and have annual sales of
about $300 million. The purchase price is $34 million for fixed assets and
approximately $10 million for net working capital. The Company expects the
acquisition to be accretive to earnings in 2001.

“Maple Leaf is very committed to building a world-class
pork industry in western Canada. Over the past three years we have invested
over $400 million in Manitoba,” said Michael H. McCain, President and Chief
Executive Officer of Maple Leaf Foods. “For the next several years we will
continue to operate the plant on a business-as-usual basis. As Brandon moves to
a second shift, primary processing will likely be consolidated into that
operation.”

“Long-term, we are highly optimistic that the Warman
Road plant has a bright future as a specialized cutting facility for unique
markets,” said Mr. McCain. “There is rapid growth in the demand for case ready
products and Asian market demand for custom products is also strong. A
specialized cutting facility would allow us to make the most of those
opportunities.”

Maple Leaf will honour all existing relationships
including contracts with hog producers and suppliers as well as collective
agreements. The operation will continue to be run by its current management and
all Schneider employees affected by the transaction will have the opportunity
to become Maple Leaf employees.

Maple Leaf Foods employs more than 2,000 people in
Manitoba through its operating companies; Maple Leaf Pork, The Landmark Group,
Elite Swine Inc., Maple Leaf Consumer Foods and Rothsay Rendering.

Maple Leaf Foods Inc. is a leading global food
processing company. Headquartered in Toronto, Canada, the company employs more
than 13,000 people at its operations across Canada and in the United States,
Europe and Asia. Maple Leaf Foods reported sales of $3.5 billion in 1999.