Nu-Gro and Pickseed sign supply agreement

Brantford, Ontario
July 3, 2002

The Nu-Gro Corporation (TSE-NU) announced today that it has signed an agreement with Pickseed Canada Inc. to combine their respective expertise to maximize the sales of grass seed in the Canadian consumer market. Prior to finalizing this agreement Nu-Gro increased its ownership in EroGreen Seeds, Inc from 70% to 100%.

The transaction includes a long term supply agreement under which Pickseed will source raw materials and package grass seed products at its Lindsay, Ontario and Sherwood Park, Alberta facilities. The transaction also includes a license to use the Pickseed. and Oseco. brands. Nu-Gro sales are expected to increase by $4 million in fiscal 2003 as a result of this transaction.

Nu-Gro is Canada’s leading seller of packaged consumer lawn and garden products. Popular brand names include CIL®, Wilson®, Vigoro®, So-Green® and Green Earth®. "Nu-Gro’s customers will benefit from combining shipments of grass seed with other product lines and from one source for in-store merchandising in the lawn and garden category", said John Hill, Nu-Gro’s President and CEO.

Pickseed is a leading North American enterprise in the research, development, production, distribution and export of forage and turfgrass seeds. "We are enthusiastic about combining the brand marketing and distribution strengths of Nu-Gro with the research, development and production strengths of Pickseed", said Rob Clark, President of the Pickseed Companies Group.

Company news release
4621

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