Financial results for fiscal 2002

Net earnings up 29.1%
Cash flow up 28.6%

(Montreal, June 5, 2002) – Saputo Inc. revealed today its financial results for the fiscal year ended March 31, 2002, for which the Company reported excellent financial performance.

Net earnings up 29.1%
Net earnings totalled $160.2 million or $1.56 (basic) per share, an increase of 29.1% over the $124.1 million or $1.21 (basic) per share (before amortization of goodwill) of the previous fiscal year. Dairyworld, acquired on February 5, 2001, was the main driving force behind this increase, and once again this year each of the divisions performed well.

EBITDA up 30.0%
As for earnings before interest, income taxes, depreciation and amortization (EBITDA), these reached $352.4 million for fiscal 2002, an increase of 30.0% over the $271.0 million of last year. The Canadian activities of the Dairy Products Sector, impacted by the strength of Dairyworld’s contribution, were the principal source of this increase.

Cash flow up 28.6%
Cash generated before changes in non-cash working capital items totalled $244.5 million or $2.38 (basic) per share, an increase of 28.6% over the $190.1 million or $1.86 (basic) per share of the previous fiscal year.

Revenues up 60.0%
Revenues totalled $3.457 billion at March 31, 2002, up 60.0% over the $2.162 billion of the previous fiscal year. 90% of the increase in revenues is attributable to the contribution of Dairyworld for 52 weeks this year. The rest of the advance is related to the combination of additional revenues deriving from American activities and the lower revenues from the activities of the Grocery Products Sector, primarily because of the transfer to Dare Foods of the cookies, fine breads and soups activities as per the agreement entered into in July 2001.

Comments on fourth quarter results
The Canadian Dairy Products Sector showed favourable results for the fourth quarter. This performance is a result of the continuing integration process of Dairyworld. The US Dairy Products Sector showed a decrease in EBITDA for the quarter as compared to the same period of the previous fiscal year. This is a direct result of the purchase price of milk not following in tandem with the selling price per pound of cheese, which resulted in an unfavourable impact. Nevertheless, there was a considerable improvement in the fourth quarter compared to the third quarter. The Grocery Products Sector has included a minimal amount of dividends in its revenues, which relates to its investment in Dare Foods.

The Company's Board of Directors has declared a dividend of $0.055 per common share payable on July 2, 2002 to shareholders of record at June 18, 2002. This dividend relates to the fourth quarter beginning January 1, 2002 and ended March 31, 2002.

Conference call
A conference call to discuss the fiscal 2002 results will be held on Wednesday, June 5, 2002 at 10:00 AM, Montreal time. To participate in the conference call dial (416) 405-9328 or 1-800-387-6216. To ensure your participation, please dial in about five minutes before the start of the call.

To listen to this call on the web, please click here.

For those unable to participate, an instant replay will be available to listeners up until midnight, Wednesday, June 12, 2002. To access the replay dial (416) 695-5800 or 1-800-408-3053, passcode 1167602.

The conference call will also be archived on the Saputo web site at .

About Saputo
The largest dairy processor in Canada and one of the leading cheese producers in North America, Saputo Inc. is a public company operating in the dairy and grocery products sectors. Its products are marketed under well-known brands such as Saputo, Stella, Frigo, Dragone, Dairyland, Baxter, Armstrong, Caron, Cayer, Vachon and Granny’s. A dynamic, world class company, Saputo Inc. employs close to 7,100 individuals in 52 plants. Company shares are listed on the Toronto Stock Exchange under the symbol SAP. For further information, please visit our website at

Financial highlights and consolidated balance sheets