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Maple Leaf Foods Completes a US$200 Million Private Placement with Prudential Capital Group

Toronto ON - Maple Leaf Foods today announced that it has issued US$200 million of long-term debt with Prudential Capital Group, an institutional investment management business of Prudential Financial Inc. (NYSE:PRU), headquartered in Newark, N.J.

“Maple Leaf Foods is extremely pleased to have established this relationship with Prudential Capital,” said Michael Vels, Executive Vice President Finance. “We view them as a long-term financial partner with an extensive knowledge of the food industry, whose business management philosophies and strategies are an excellent fit with ours. This deal further diversifies our core lending sources, extends the average term of our debt and gives us access to competitively priced financing.”

Of the $200 million placement, US$60 million is repayable in 2007, and the remaining US$140 million in 2009. The two notes have interest rate coupons of 5.64% and 6.26% respectively.

Proceeds will initially be used to reduce drawings under the Company’s revolving lines of credit, and for general corporate purposes. Covenants included in the lending agreement are materially consistent with the Company’s existing credit facilities.

Prudential Capital Group has been a leading provider of private capital for more than 60 years, investing in private debt on behalf of Prudential Financial’s General Account and various institutional investors. For the year to date, Prudential Capital has originated a total of $4.4 billion through its regional office network locations in New York, Atlanta, Dallas, Chicago, San Francisco, and London, and is headquartered in Newark, N.J.

Maple Leaf Foods, Inc. is a leading Canadian food processing company committed to delivering quality food products to consumers around the world. Headquartered in Toronto, Canada, the Company employs more than 15,000 people at its operations across Canada, and in the United States, Europe and Asia. Maple Leaf Foods Inc. reported sales of $4.8 billion in 2001.

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