Saputo Announces the Closure of its Plant in Hinesburg, Vermont, United States

This decision is part of the Company’s continual analysis of its overall activities and the implementation of measures aimed at improving its operational efficiency.

23/10/08 Saputo Inc. announced the closure of its cheese manufacturing plant in Hinesburg, Vermont, United States (US). This facility was damaged by a fire on September 29, 2008. Since that incident, production has been transferred to other Saputo facilities in the US.

The official date of closure is October 22, 2008. In all, approximately 80 permanent employees will be affected. In some cases, employees will be offered the possibility of transferring to other plants within the Dairy Products Division (USA).

This decision is part of the Company’s continual analysis of its overall activities and the implementation of measures aimed at improving its operational efficiency.

Costs connected with the closure will be approximately USD$5.4 million after taxes, which includes an after tax fixed assets write down of approximately USD$4.4 million. These costs will mainly be recorded in our fiscal 2009 third quarter. Annual savings after taxes should be approximately USD$2.2 million and should commence at the beginning of fiscal 2010.