Saputo Announces the Closure of its Plant in Peru, Indiana, United-States

Saputo Inc. (TXS:SAP) announced today the closure of its cheese manufacturing plant in Peru, Indiana, United-States. This decision is part of the Company's strategy to better position itself to respond to the current market volatility experienced in the United-States.

The plant will cease to operate on May 15, 2006. In all, 71 employees will be affected and each of them will be given the possibility to transfer to Company plants elsewhere.

Costs connected with the closure will be minimal and the future impact on the Company's profitability is almost neutral.

About Saputo

Solid foundations, a commitment to excellence and dedication to growth are the keystones that have enabled Saputo to evolve as the largest dairy processor in Canada, one of the most important cheese producers in North America, the third dairy processor in Argentina and the largest snack cake manufacturer in Canada. Our products, manufactured in 45 plants located across the Americas and in Europe, are marketed under such well-known brand names as Saputo, Armstrong, Alexis de Portneuf, Kingsey, Dairyland, Baxter, Nutrilait, Stella, Frigo, Dragone, Treasure Cave, La Paulina, Ricrem, DeLucia and Vachon. Saputo Inc. is a public company whose shares are listed on the Toronto Stock Exchange under the symbol SAP. Propelled by the same sense of dedication that motivates our 8,500 employees to surpass themselves day after day, we will continue to successfully craft our future.

Distributed by Market Wire