BC Sugar Announces Third Quarter Earnings for 1996.

VANCOUVER, British Columbia--(BUSINESS WIRE)--Aug. 21, 1996--BC SUGAR REFINERY (ToSE:BCS) William C. Brown, president and CEO of BC Sugar Refinery, Limited, today announced third fiscal quarter earnings for 1996.

For the nine months ended June 30, 1996, earnings were $20.1 million, or $0.82 per share. For the same period last year, earnings were $1.3 million, or $0.05 per share. For the third fiscal quarter of 1996, earnings were $5.8 million, or $0.24 per share compared to a net loss of $(1.3) million, or $(0.05) per share, for the third quarter last year.

Nine month revenues totalled $623 million compared to $614 million for the first nine months last year. Revenues for the third quarter were $209 million compared to $203 million for the same period last year.

Despite vigorous domestic competition, the Company's Canadian operations continue to report improved performance as a result of cost-containment initiatives and the imposition of duties on imports of refined sugar from the United States and the European Community.

The intensification of competition in Canada has had a significant effect on the Company's eastern operations and, while Lantic Sugar's results are improved over this time last year, both volumes and sales margins are lower than was earlier anticipated.

In the United States, refined sugar selling prices and refiners' margins have continued to improve as supplies have tightened because of reduced U.S. beet sugar production. At Refined Sugars, these favourable market conditions were enhanced by the on-going and past efforts of RSI in reducing its cost structure, and RSI reported its first quarterly operating profit in several years.

For the nine months ended June 30, 1996, funds from operations were $34.5 million, or $1.39 per share versus $16.8 million or $0.68 per share for the same period last year. The Company continues to benefit from a decline in interest expense.

The consolidated income tax rate has declined from last year as the profitable operations of RSI are currently sheltered from tax. -0-

FINANCIAL RESULTS
(In Thousands of Dollars)

                                            Nine Months
                                           Ended June 30
                                         1996         1995

Revenues                              $ 622,934    $ 614,026
                                     ________________________
Costs and expenses
 Cost of sales                          529,221      546,190
 Selling, general and administrative     35,946       33,219
 Depreciation and amortization           12,319       12,120
 Long-term debt interest                 11,482       12,446
 Other interest                             415          810
                                     ________________________
Total costs and expenses                589,383      604,785
                                     ________________________
                                         33,551        9,241
                                     ________________________
Income taxes                             13,403        7,890
                                     ________________________
Net earnings (loss)                   $  20,148    $   1,261
                                     ________________________
Net earnings (loss) per common share  $     .82    $     .05
                                     ________________________

                                           Three Months
                                           Ended June 30
                                         1996         1995

Revenues                              $ 209,468    $ 202,645
                                     ________________________

Costs and expenses
 Cost of sales                          180,689      182,788
 Selling, general and administrative     12,251       10,713
 Depreciation and amortization            4,142        4,013
 Long-term debt interest                  3,770        4,086
 Other interest                             183          131
                                     ________________________
Total costs and expenses                201,035      201,731
                                     ________________________
                                          8,433          914
                                     ________________________
Income taxes                              2,624        2,236
                                     ________________________
Net earnings (loss)                   $   5,809    $  (1,322)
                                     ________________________
Net earnings (loss) per common share  $     .24    $    (.05)
                                     ________________________

BC Sugar Refinery, Limited, which celebrated its 100th anniversary in 1990, is involved in the production, distribution and marketing of sugar products throughout Canada and the north-eastern United States. With operating companies Rogers Sugar Ltd. and Lantic Sugar Limited in Canada, and Refined Sugars, Inc. in the United States, BC Sugar is the largest sugar company in Canada and the third largest in North America.

CONTACT: BC Sugar Refinery, Limited

William C. Brown, 604/253-1131

or

BC Sugar Refinery, Limited

James W. Hudson, 604/253-1131