--------------------------------------------------------------------------------
[LOGO] Stake Tech
STAKE TECHNOLOGY LTD.
FOR IMMEDIATE RELEASE Nasdaq: STKL
STAKETECH COMPLETES ACQUISITION OF NORTHERN FOOD & DAIRY, INC.
Adds Technology, Furthers Vertical Integration
Norval, Ontario - September 18, 2000 - Mr. Jeremy N. Kendall, Chairman and CEO
of Stake Technology Ltd., and Mr. Dennis Anderson, Chairman and CEO of Northern
Food & Dairy, Inc., today announced that Stake has successfully completed the
acquisition of 100 percent of Northern's common shares.
On August 18, 2000, the shareholders of Stake Technology overwhelmingly approved
this transaction, which significantly strengthens the position of StakeTech's
subsidiary, SunRich, Inc., in the soy milk market. Northern produces 65 percent
of the soy milk that is sold in the US. In addition, Northern produces soy
drinks, natural food preservatives, and other food ingredients from three plants
in Minnesota. Because of soy's recognized health advantages and widespread
concerns over lactose intolerance and genetically modified foods, the soy milk
market has grown by more than 30 percent annually in the United States, topping
US$300 million in sales in 1999.
"Management estimates that this acquisition will enable Staketech to exceed $100
million in sales in 2001 in its food group alone," said Mr. Kendall. "As well as
completing SunRich's integration in the soy market, Northern is profitable, and
will add to our bottom line. For the longer term, one of the most exciting
aspects of the acquisition is that we can see applications across the food
industry for Northern's entire line of natural food ingredients".
To help meet the needs of this market, Northern and SunRich are currently
constructing an additional soy milk manufacturing plant in Wyoming, which will
go into production in October of this year. Among the other initiatives of the
newly expanded company, Northern is planning an increase in the capacity of its
main soy production facility in Alexandria and new facilities in other strong
regional markets.
As part of this transaction, Northern's Chairman and CEO, Dennis Anderson, and
Chief Financial Officer, Larry (Andy) Anderson, will join the board of Stake
Technology.
Stake Technology Ltd. is an owner/operator of high-growth ethical businesses,
focused on environmental responsibility and the health and well being of its
communities. StakeTech was named by Profit magazine in its 1999 `Profit 100' as
the 5th fastest growing company in Canada over the past 5 years. Currently, the
company has three business units: Steam Explosion, marketing clean pulping
technologies; BEI/Pecal, a producer, distributor, and recycler of industrial
materials; and SunRich, Inc., an agritech company specializing in
identity-preserved (IP) grain products and natural food ingredients. Each of
these business units has proprietary products and services that win it a solid
competitive advantage in its sector.
For further information, please contact:
Stake Technology Ltd. SunRich Inc.
Jeremy N. Kendall, Chairman & C.E.O. Allan Routh, President
John D. Taylor, President & C.O.O. Tel: 507-451-3316
Tel: 905-455-1990 Northern Food & Dairy, Inc.
E-mail: [email protected] Dennis Anderson, Chairman & C.E.O.
Tel: 320-763-5977
Websites: www.staketech.com www.bei.ca www.sunrich.com
Ciris International
Robin Sundstrom
Tel: 416-368-8770
www.steamexplosion.com
Note: This news release may contain forward-looking information. Actual future
results may differ materially. The risks, uncertainties, and other factors that
could influence actual results are described in the company's annual report to
shareholders and in SEC reports.
--------------------------------------------------------------------------------
