Agrium Acquires 18 Retail Outlets in Argentina, Chile, and Bolivia.

CALGARY, Alberta -- ALL AMOUNTS ARE STATED IN U.S.$

Agrium Inc. (NYSE:AGU)(TSX:AGU) announced today that it has acquired the retail operations of United Agri Products (UAP) South America.While the specific terms of the transaction are confidential, the primary investment is in working capital.The transaction includes 18 retail locations (12 Argentina; 4 Chile; 2 Bolivia) with net sales of $31-million for the year ended February 29, 2004.Agrium's existing 21 Agroservicios Pampeanos S.A. (ASP) farm centres had net sales of $92-million for 2003.

"We believe this acquisition offers a number of benefits to Agrium," said Mike Wilson, Agrium's President and CEO. "It expands our increasingly profitable business in Argentina, and provides an entry into other markets, particularly the Chilean market, which we believe has significant potential."

The newly acquired operations were focused on selling branded crop protection chemicals. Over 90 percent of their net sales on average were from chemicals, and approximately five percent from fertilizers. This contrasts with ASP's sales mix of over 70 percent fertilizers and less than 20 percent chemicals.

"This acquisition should provide us the opportunity to increase fertilizer sales at the newly acquired outlets, and increase branded chemical sales at our ASP outlets," continued Mr. Wilson. "Our goal is to combine the best of both the existing and new operations for the benefit of our customers, and ultimately our shareholders."

Agrium Inc. is a leading global producer and marketer of agricultural nutrients and industrial products and a major retail supplier of agricultural products and services in both North America and Argentina. Agrium produces and markets three primary groups of nutrients: nitrogen, phosphate and potash as well as micronutrients. Agrium's strategy is to grow through incremental expansion of its existing operations and acquisitions as well as the development, commercialization and marketing of new products and international opportunities.

Certain statements in this press release constitute forward-looking statements. Such forward-looking statements involve known and unknown risks and uncertainties, including those referred to in the management discussion and analysis section of the Corporation's most recent annual report to shareholders, which may cause the actual results, performance or achievements of the Corporation to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. A number of factors could cause actual results to differ materially from those in the forward-looking statements, including, but not limited to, weather conditions, the future supply, demand, price level and volatility of natural gas, future prices of nitrogen, phosphate and potash, the differential pricing of natural gas in various markets, the future gas prices and availability at Kenai, the exchange rates for U.S., Canadian, Argentine, Chilean and Bolivian currencies, South American government policy, South American domestic fertilizer consumption, future fertilizer inventory levels, future nitrogen, potassium and phosphate consumption in North America, future crop prices, future levels of nitrogen imports into North America and future additional fertilizer capacity and operating rates. Agrium disclaims any intention or obligation to update or revise any forward-looking information as a result of new information or future events.

AGRIUM INC. (NYSE:AGU) (TSX:AGU)