Investment Group Led by Fanjuls Signs Agreement to Acquire Domino Sugar.

Business Editors

WEST PALM BEACH, Fla.--(BUSINESS WIRE)--July 26, 2001

Deal will create one of the world's largest

vertically integrated sugar companies

An investment group led by Alfonso and J. Pepe Fanjul have agreed to acquire Tate & Lyle North American Sugars Inc., the producer of Domino brand sugar, from Tate & Lyle plc.

Domino will be combined with Refined Sugars Inc., the Yonkers, New York refinery in which the Fanjuls have an interest. The combined operation will be known as Domino Sugar. Companies controlled by the Fanjuls will own 61% of Domino Sugar and Sugar Cane Growers Cooperative of Florida will own the remaining 39%.

The purchase price is $180 million in cash and up to $25 million payable over four years contingent on the performance of the business.

Along with the Domino brand name, the acquisition includes Domino's operations in Brooklyn, New York; Baltimore, Maryland and Chalmette, Louisiana. The combined enterprise will produce more than two million tons of refined sugar and specialty products a year and have annual revenues in excess of $1 billion.

"Our family has been committed to the sugar industry for 150 years," said Alfonso Fanjul, chairman of privately held Flo-Sun Inc. and chairman and chief executive officer of Florida Crystals Corporation, the first vertically integrated cane sugar company in the U.S. "This deal will further vertically integrate our business and ensure that our customers have a reliable supply of refined sugar. Florida Crystals and Sugar Cane Growers Cooperative have always been committed to providing quality products and service; we will continue this tradition with Domino."

J. Pepe Fanjul, vice chairman, president and chief operating officer of Flo-Sun Inc. and Florida Crystals, cited the value of the Domino brand name as a key building block going forward. "Domino has stood for quality sugar and sugar-based products among consumers, industrial customers, supermarket chain stores and foodservice operators for decades," he said. "Integrating the sugar farming, processing, marketing and management expertise of Florida Crystals, Sugar Cane Growers Cooperative of Florida, and Domino Sugar will help Domino become an even more important brand name nationally in the years ahead."

George H. Wedgworth, one of the founders, president and chief executive officer of Sugar Cane Growers Cooperative of Florida said, "This is an exciting opportunity for the many small- and medium-sized farmers who belong to the Cooperative. By combining forces with Domino and RSI, we make our farmers part of a large, robust organization."

Rhone Group LLC is representing Florida Crystals in the transaction.

About Flo-Sun Inc.

Flo-Sun is the parent of the Fanjul family corporate group, including Florida Crystals. It is a privately held diversified agricultural, real estate, resort and power generating company with operations and holdings in the U.S., Dominican Republic and Europe.

About Florida Crystals

The Fanjul family, now in its fifth generation and 150th year in the sugar business, founded the Florida operations in 1960. Florida Crystals has expanded to become one of the largest sugar producers in Florida, farming approximately 180,000 acres of sugar cane fields in Palm Beach County with more than 3,000 employees. The company is also recognized as the first fully integrated cane sugar company in the United States with operations ranging from the planting and farming of sugar cane to the milling and refining of sugar under the Florida Crystals(R) label. Florida Crystals is a privately held company and a subsidiary of Flo-Sun, Inc., a privately held diversified agricultural, real estate, resort and power generating company.

About Sugar Cane Growers Cooperative of Florida

Sugar Cane Growers Cooperative of Florida is comprised of 56 grower-members located in Palm Beach County, Florida. The primary functions of the Cooperative are the harvesting transportation and processing of the members' sugarcane and the marketing of raw sugar. Last season, the Cooperative's members produced 3.2 million tons of sugarcane grown on 73,000 acres yielding 374,000 tons of raw sugar.

About Refined Sugars Inc.

Refined Sugars Inc. is owned jointly by Florida Crystals Corporation and Sugar Cane Growers Cooperative of Florida. RSI is a significant refiner of raw cane sugar. The refinery routinely processes up to four million pounds of sugar per day. The sugar produced at RSI is delivered to a wide array of customers in the foodservice, retail and industrial markets. RSI's extensive and complete product line provides ingredients to virtually all segments of the food and beverage industry including: bakery, confectionery, dairy, processed foods and canning. RSI's retail division proudly markets a complete line of sugar products as well as a broad assortment of private labels to many distinguished retailers.

About Tate & Lyle NA.

As part of the Tate & Lyle Group, a world leader in carbohydrate processing and sweetener technologies, Tate & Lyle North American Sugars processes cane and beet sugar in the U.S. Products are marketed under the brand name of Domino Sugar(R), a leading U.S. sugar brand. (This transaction does not affect Tate & Lyle's ownership of Redpath Sugars, Toronto, Canada.)