Ridley Canada Reports Fiscal Third-Quarter Results.

WINNIPEG, Manitoba--(BUSINESS WIRE)--May 15, 1998--Ridley Canada Limited (TSE: RCL) today reported results for the fiscal third quarter ended March 31, 1998.

"We have now recorded about 87 percent of the full year's net earnings that we forecast in the prospectus issued in August 1997 for Ridley Canada's IPO. We remain on-track and are confident of meeting our earnings forecast for the full year," said Ed Moloney, President and Chief Executive Officer of Ridley Canada.

"Our strong performance is attributable to the continuing good results of all our feed businesses and, in particular, the contributions of the acquisitions that Ridley Canada has made, notably the Hubbard Feeds and Daco Western Canada operations, purchased in May and June 1997, respectively. The integration of these operations continues to go well.

"Coordinated efforts between the Canadian and U.S. operations, especially in the areas of research and development, purchasing, and computer systems are achieving synergies and helping to build a strong team spirit," he said.

Net earnings for the third quarter were $4.3 million ($0.33 per share), up 705 percent compared with $0.5 million in the 1997 period. EBITDA (earnings before interest, taxes, depreciation, and amortization) rose 362 percent to $9.7 million in the 1998 third quarter compared with $2.1 million in the 1997 period. Sales for the fiscal 1998 third quarter were $100.3 million, an increase of 143 percent compared with $41.2 million in the prior year period.

For the fiscal 1998 nine-month period, net earnings increased 522 percent to $11.2 million ($0.91 per share), compared with $1.8 million recorded for the fiscal 1997 period. EBITDA increased 311 percent to $27.1 million from $6.6 million a year earlier. Sales rose 143 percent to $305.4 million compared with $125.5 in the first nine months of fiscal 1997.

"The cold weather second and third fiscal quarters are the periods when Ridley expects to generate more than two-thirds of its annual earnings. This pattern has been consistent in fiscal 1998," said Mr. Moloney.

Fiscal 1998 third-quarter earnings were strong, Mr. Moloney said, despite the fact that the relatively mild winter had a negative impact on livestock feed sales during the third quarter and Ridley's swine business has been affected by a 40 percent decline in the market prices for pigs since June 1997.

In keeping with the company's strategy to add products and markets through both internal growth and selective acquisitions, Ridley announced on May 8 that it had acquired the assets of PM Ag Products Inc.'s low moisture blocks business. "The purchase of this business extends our leadership as the largest manufacturer of low moisture feed blocks in North America. As with past acquisitions, Ridley expects to achieve significant synergies, although this acquisition is expected to have only a modest effect on financial results in fiscal 1999. There will be a transition period of up to 15 months during which time production of the low moisture blocks for this business will be transferred to Ridley Canada's facilities. As a result, the acquisition will have a more meaningful impact on financial results in fiscal 2000 and beyond," stated Mr. Moloney.

"We plan to begin construction shortly on a 50,000-tonnes-per-year capacity low moisture block plant at Buffalo, Texas, to be completed in Spring 1999. By establishing our own production facility in Texas, we will be extending Ridley's reach into important new market areas where we do not currently have plants," he said.

Ridley Canada Limited, headquartered in Winnipeg, ranks among the 10 largest livestock feed manufacturers in North America. Ridley Canada manufactures a full line of livestock feed products at 35 facilities, located in the livestock and grain-growing regions of Western Canada and the North-Central region of the United States. It markets its products under a series of brand names. The company also operates a pig breeding business with exclusive rights to market the genetically advanced line of Cotswold pig in Canada. Ridley Canada's common shares are listed on The Toronto Stock Exchange (Trading symbol: RCL).

CONTACT: Ridley Canada Limited

Ed Moloney, 204/956-3151