Prepared Foods May 24, 2005 enewsletter

Saputo Inc. has entered into an agreement to acquire the activities of Schneider Cheese Inc., a U.S. company that manufactures and sells string cheeses and cheese sticks under the Schneider brand name and other private labels.

The purchase price is $23.9 million on a debt-free basis, payable in cash from liquidity and/or by drawing on available lines of credit. The closing of the transaction is subject to the usual conditions and is anticipated before the end of May 2005.

Schneider Cheese Inc. employs approximately 160 people in the U.S. at its plant located in Waldo, Wisconsin. Schneider Cheese's annual revenues are approximately $40 million. These assets will complement Saputo's current activities in the United States.