May 20, 2005 9:22 AM, from staff and wire reports

Saputo Inc, the Canadian dairy processor and distributor, has entered into an agreement to acquire the activities of Schneider Cheese Inc. Based in Waldo WI, Schneider manufactures and sells string cheeses and cheese sticks under the Schneider brand name and other private labels.

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

Schneider employs about 160 people at its Wisconsin plant, and its annual revenues are approximately US $40 million.

Established in 1954, Saputo employs 7,900 individuals in its 46 plants and its distribution centers. It is the largest dairy processor in Canada and one of the largest cheese producers in North America.