U.S. SUGAR AND UNION REACH NEW CONTRACT AGREEMENT

CLEWISTON, FL — February 23, 2005 — After three weeks of intense, round-the-clock negotiations, U.S. Sugar Corporation and its union reached agreement on a new four-year contract that will modernize the working relationship as the business changes and builds for the future.

The contract was ratified Tuesday by members of the International Association of Machinist and Aerospace Workers Local Lodge # 57.

“These were very difficult negotiations and the final week included a federal mediator at the Union’s request, but we were able to hammer out an agreement that was acceptable to both the Company and the Union,” said Charles Shide, Vice President, Human Resources.

“Trade agreements like CAFTA could greatly impact the economic outlook for the American sugar producer as we are already preparing for NAFTA to open borders in 2008. The vote in favor of the contract shows an understanding of the issues impacting our business and a desire to make the Company competitive for the future,” said Robert Coker, Senior Vice President, Public Affairs.

Tough economic issues were the focus of the negotiations as U.S. Sugar prepares to consolidate its sugar processing operations into a single, modern and highly automated facility in Clewiston. As announced earlier, the raw sugar processing mill at Bryant is scheduled to close in 2007 but the Company needs to operate both current facilities until the new operations are on line.

Over the four-year term of the contract, employees will see a 10.5% increase in earnings plus an incentive retention package for mill workers whose jobs will be eliminated by the more automated operations. The retention package for mill workers who remain until 2007 provides a week’s pay for each year of service, with a minimum of 24 weeks’ pay. The contract also includes a new menu of healthcare options to control rising healthcare costs and modernized work rules that will provide greater job/work hours flexibility which is required by U.S. Sugar’s significant investment in the new sugar processing and refining operations.

In addition, the Company will pay a “commissioning” bonus if the new milling operations perform according to design parameters in 2008.

“We’re excited about the future. The new contract will enable both management and union members to work together and to work more efficiently as we build this business for the future,” Shide said.