Clewiston, FL — November 12, 2008 — Negotiations between the South Florida Water Management District and management of U.S. Sugar concerning the purchase of the real property of U.S. Sugar have successfully concluded and the terms of an agreement have been reached. A final contract must be considered and approved by U.S. Sugar’s Board of Directors and the Governing Board of the South Florida Water Management District (SFWMD). If approved by the two respective boards, they will be signed in early December. Terms of the pending contract include the sale of U.S. Sugar’s real estate properties, (approximately 181,000 acres), for $1.34 billion and a lease-back of the land for $50 per acre, for a period covering seven crop cycles. The sugar mill, refinery and citrus processing facilities, railroads, office buildings, equipment and the Gilchrist County citrus nursery will remain the property of U.S. Sugar. “After months of negotiations it became clear that the best transaction was for the state to buy the land and for U.S. Sugar to keep the assets. This is a good deal for the state, U.S. Sugar and for our shareholders,” said Robert Coker, senior vice president of public affairs for U.S. Sugar. “The SFMWD is able to purchase all of the land necessary to proceed with Everglades restoration at a cost less than originally anticipated, since additional company assets are not included in the agreement. The company is able to continue farming and ensure that jobs are safeguarded for the next seven years,” Coker said. The SFWMD purchase of 181,000 acres of land (about 285 square miles located in environmentally strategic areas) will help resolve restoration issues for Lake Okeechobee, the Caloosahatchee and St. Lucie estuaries and the Everglades. Sufficient land also will be available for critical water storage and treatment. This acquisition should allow remaining Everglades Agricultural Area farmers and the Everglades to be sustainable well into the future. Consistent with the original statement of principles of the sale to the State, U.S. Sugar will continue to operate all of its businesses as usual for a period covering seven crop cycles. This will enable the Company to fulfill its long-term existing business obligations. During this transition period, BMO Capital Markets Corporation will continue to act as financial advisor to U.S. Sugar. “At the end of seven crops, we will either continue to operate the facilities or sell them based on the best interests of our shareholders,” Coker said. B-roll and high-resolution photographs available at: Distributed
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