CLEWISTON, FL— U.S. Sugar Corporation today announced plans to modernize and automate its sugar processing facilities in Clewiston and close its Bryant Mill. With state-of-the-art and highly automated equipment, the resulting 38,000 tons-per day facility scheduled to come on line in phases over the next three years will be among the largest in the world.

“In order to successfully compete in a changing sugar market with increased foreign sugar imports as a result of NAFTA and other trade agreements, we are automating our facilities to lower our costs,” said Bob Buker, Executive Vice President.

“Unfortunately, one of the consequences of increased trade, automation and new technology will be the loss of 300-350 jobs in our sugar processing operations,” Buker said.

Scheduled to be in full operation in October, 2007, U.S. Sugar’s modernized sugar processing facility will be completely integrated with its refining operations at the Clewiston site. The Bryant Mill facility, built in 1963, is scheduled to close in early 2007. Severance packages for all those whose jobs are eliminated with this consolidation will be a subject of discussion in the upcoming union negotiations.

“As trade agreements limit the amount of sugar that American producers can sell and many U.S. industrial sugar users move their operations overseas to take advantage to lower labor and environmental costs, the domestic sugar industry is faced with decreased sales and revenue,” Robert Coker, Senior Vice President, Public Affairs.

“NAFTA will completely open U.S. borders to Mexican sugar in 2008 and CAFTA, which we will actively oppose in Congress, would allow an additional 100,000 tons of foreign sugar into an already over-supplied U.S. market,” Coker said.

“Doing nothing is not an option for U.S. Sugar. Doing nothing puts everyone at risk,’ Buker said. “We are building a stronger company and a stronger business so that we can survive and thrive in the future.”

U.S. Sugar is one of America’s premier privately held agribusiness companies. The Company farms sugarcane and citrus on 196,000 acres in Hendry, Glades and Palm Beach counties with the most efficient and progressive farming techniques available in the world. With state-of-the-art technology for both sugar refining and citrus processing, U.S. Sugar’s vertical integration provides a direct connection from the farm to the marketplace while maintaining the highest standards for worker safety, food quality and environmental protection.