StakeTech Announces Record Second Quarter Results.

Business Editors

NORVAL, Ontario--(BUSINESS WIRE)--Aug. 14, 2000

Stake Technology Ltd. (StakeTech) (Nasdaq:STKL)

Jeremy N. Kendall, Chairman and Chief Executive Officer of StakeTech, today announced record results for the first six months of 2000.

Mr. Kendall noted that the second quarter includes the first full quarter results from the PECAL acquisition, which has performed up to expectations. Targeted cost reductions resulting from the merging the PECAL operations with BEI have exceeded the $810,000 budget and these savings will be recognized over the next year.

On August 18, 2000 the shareholders of Stake are meeting to consider the acquisition of Northern Food & Dairy, Inc. which is expected to add in excess of $40 Million in revenue in the coming year with pre-tax earnings of approximately 10%. The acquisition of the assets of Hoffman Aseptic through Nordic Aseptic is expected to be completed before the end of August, resulting in a fully integrated operation from organic seed to packaged soy milk.

Sales revenue for the Company in the first six months of 2000 increased by 309% to $45,441,000 compared to $11,109,000 in the same period last year. The Company reported a 123% increase in earnings to $1,518,000 or $0.07 per share for the first six months compared to earnings of $680,000 or $0.05 per share in the first six months of 1999 after allowing for the increase in issued shares. Working capital increased from $3,977,000 to $7,173,000.

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Selected financial information (Expressed in Canadian dollars)
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                       Six Months ended   Six  months ended   % change
                         June 30, 2000      June 30, 1999
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Sales                       $45,441,000         $11,109,000     +309%
Net Earnings                 $1,518,000            $680,000     +123%
E.P.S.                            $0.07               $0.05      +40%
Weighted number of shares    20,817,000          14,903,000      +40%
Working capital              $7,173,000          $3,977,000      +80%
Total assets                $42,428,000         $16,467,000     +158%
Shareholders' Equity        $20,102,000         $10,991,000      +83%
Equity per share                  $0.96               $0.73      +32%
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                     Second Quarter Second Quarter
                    ended June 30, 2000 ended June 30, 1999  % change
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Sales                       $29,432,000          $5,987,000     +392%
Net Earnings                 $1,110,000            $605,000      +83%
E.P.S.                            $0.05               $0.04      +25%
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Stake Technology Ltd. is an owner/operator of growth orientated ethical businesses based on environmental responsibility and the health and well being of its communities. Currently, the Company has three complementary business units: Steam Explosion, marketing clean pulping technologies; B.E.I., focussed on the recycling of industrial materials; and Sunrich, Inc., an agritech business supplying specialty products throughout North America and internationally. Each of these businesses has proprietary products and services that win them a solid competitive advantage in their sectors.

Note: This news release may contain forward-looking information. Actual future results may differ materially. All figures are in Canadian dollars. The risks, uncertainties, and other factors that could influence actual results are described in the company's annual report to shareholders and in SEC reports.