Agrium and YPF Increase Their Shareholding in Profertil S.A. & Agrium Declares a Dividend.

CALGARY, Alberta--(BUSINESS WIRE)--Dec. 4, 1998--Agrium Inc. (NYSE:AGU)(TSE:AGU) and YPF S.A. (NYSE:YPF) of Argentina, today jointly announced that they have increased their respective holdings in Profertil S.A. to 50 percent each.

Perez Companc S.A., in their continuing effort to focus on their core business of exploration and production of oil and gas will no longer be a shareholder in Profertil.

Agrium and YPF have identified the southern cone of South America as a key area for long term strategic growth. This opportunity to increase their stake in Profertil is consistent with Agrium's and YPF's plans to participate more fully in the rapidly growing fertilizer market of the Mercosur countries.

Profertil S.A. is constructing a world-scale nitrogen fertilizer plant in Bahia Blanca, Province of Buenos Aires, Argentina. The project is currently at 37 percent completion, with detailed engineering essentially complete. Over 90 percent of the materials and equipment are committed and a workforce of over 1,100 is now at the construction site. The plant is anticipated to be operating on schedule and on budget by mid year, 2000.

Profertil will now be the sole marketer of nitrogen products from the Bahia Blanca plant. It will also market all other fertilizer nutrients throughout the Mercosur.

Agrium and YPF bring together a unique and complementary blend of skills in natural gas feed stock supply, fertilizer plant operating experience, and marketing to serve the Mercosur market.

The Board of Directors of Agrium Inc. (TSE and NYSE:AGU) have declared a dividend of five and one half cents U.S. (U.S. $0.055) per common share to be paid on January 7, 1999 to shareholders of record on December 18, 1998.

Agrium Inc. is the largest North American producer of nitrogen fertilizers, and a major producer of potash and phosphate fertilizers. The Company is also a leader in the wholesale distribution and retail marketing of fertilizers, related products, and services to the agricultural industry.