Meat Industry INSIGHTS Newsletter

980504 Maple Leaf Foods Announces First Quarter Earnings Charge

May 1, 1998

Toronto - Maple Leaf Foods Inc. management intends to take a special charge of $82.9 million before taxes ($58.4 million after taxes) in its first quarter earnings, representing labor dispute-related costs and costs associated with other restructuring initiatives. The special charge represents $0.60 per share and will be reflected in the Company's first quarter earnings to be released on May 7, 1998.

Included in the pre-tax amount is $37 million of labor dispute-related costs and payments made to employees upon settlement of the Burlington strike. The balance of the special charge relates to other restructuring initiatives currently underway or planned including completion of centralization of administration in the Canadian Bakeries, International Trading, Poultry and Shur-Gain businesses, and realignment of manufacturing capacity.

Mr. Archie McLean, Vice-Chairman and Chief Executive Officer, said: “The Company and its employees have experienced a difficult period of uncertainty over the last several months. With many difficult issues now behind us, we are confident that results in the second half of the year will begin to reflect the improved competitiveness of the business.”

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