U.S. SUGAR TO ASSESS SUGAR CANE, ORANGE CROP DAMAGE

CLEWISTON, FL — September 8, 2004 — Hurricane Frances came ashore on the east coast and passed through the U.S. Sugar’s area of operations this past weekend. Winds of 95 mph were reported in Port Mayaca on the eastern side of Lake Okeechobee. The Company was lucky once again to avoid any catastrophic damage. Many of the Company’s employees living in Belle Glade, Clewiston, Canal Point, Okeechobee, Pahokee, South Bay and the Wellington area suffered damaged to their homes and many are still without electricity.

SUGAR
Much of the sugarcane crop was flattened by the storm and a portion of the cane stalks were broken. Snapped off or broken cane stalks will rot. The Company is conducting a field-by-field study to assess the damage, which will take a week or more to finalize. Preliminary assessments indicate that windblown cane will be more expensive to harvest.

Standing water from the storm and the wet weeks prior to the hurricane may cause additional damage and has continued to delay fall planting by several weeks. Even though the Company will certainly lose part of its crop, company officials believe there is enough sugarcane of sufficient quality to meet its allotment, but field studies and future weather will impact actual results.

CITRUS
A subsidiary of U.S. Sugar, Southern Gardens Citrus, to the west fared much better. Most importantly, the orange groves did not lose any fruit or any trees. Citrus operations sustained minor damage to pumphouse roofing in the groves and the American flag hanging from the juice plant was lost.