Agrium Reports Incident at Profertil Facility During Start-Up.

Business Editors

CALGARY, Alberta--(BUSINESS WIRE)--July 20, 2000

Agrium Inc. (TSE:AGU.)(NYSE:AGU) ("Agrium") announced today that on Tuesday, July 18, 2000, an incident occurred at the ammonia/urea plant of Profertil S.A. located in Bahia Blanca, Argentina. Profertil S.A. is 50% owned by Agrium Inc. and 50% owned by Repsol YPF, S.A.. A gas release from a ring joint flange caused a fire in a piperack in the ammonia unit at the Profertil plant. The unit was in start-up mode at the time. The commissioning and start-up of this plant is under the direction and control of the contractor until commercial production is achieved. The incident was brought rapidly under control and no one was injured. Damage was restricted to a section of piperack and associated piping, cable tray and instrument/electrical cabling. The cause of the incident is under investigation.

A preliminary estimate of the time required for mechanical repairs is three weeks. Ammonia and urea production from the complex are now projected for the second half of August. Profertil will not bear any additional costs due to this incident.

Agrium Inc. is a leading producer and marketer of fertilizer in North America and a major retail supplier of agricultural products and services in both North America and Argentina. The Corporation produces and markets four primary groups of fertilizers: nitrogen, phosphate, potash and sulphur. The Corporation'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.