Minneapolis, Minnesota
February 20, 2002

Land O'Lakes 2001 results reflect solid financial and business performance, significant strategic growth, positive market momentum and a continued commitment to its cooperative heritage and mission, Land O'Lakes Senior Vice President and Chief Financial Officer (CFO) Dan Knutson today told delegates and visitors at the national food and agricultural cooperative's 81st Annual Meeting.

In 2001, Land O'Lakes sales were up 4 percent to $6.0 billion and earnings, before incomes taxes and an extraordinary item, were up approximately $4 million to $90 million, Knutson today told approximately 2,500 delegates and visitors gathered at the Minneapolis Convention Center.

The Land O'Lakes CFO added that net earnings were down from $103 million in 2000, to $71 million in 2001 largely the result of the impact of extraordinary expenses, in 2001, related to the acquisition of Purina Mills, and the year 2000 gain on the sale of Land O'Lakes fluid dairy assets (which was partially offset by the net impact of the write-down of certain cheese assets and losses related to repositioning of the retail agronomy segment).

Knutson added that Land O'Lakes returned $47 million in cash to members in 2001. Over the past five years, Land O'Lakes has returned approximately $250 million in cash to members.

Land O'Lakes Financial Performance

During Operations Reports, Land O'Lakes business unit leaders reported:

• increased earnings in butter, deli cheese, dry cheese and foodservice products, the result of improved value-added margins, the strength of the LAND O LAKES(R) brand, aggressive marketing and enhanced operating efficiency;
• increased sales and continued strong earnings in Feed, driven, in part, by the successful implementation of the Land O'Lakes Farmland Feed joint venture;
• positive growth in seed, with significant increases in soybean, corn and alfalfa seed volumes, and notable growth in the reach of the CROPLAN GENETICS(R) brand; and
• $10 million in Agronomy earnings, despite a continued industry downcycle.

Land O'Lakes also accomplished significant strategic growth over the past year, Knutson said, adding that the company's acquisition of Purina Mills, Inc., represented one of the most complex and strategic initiatives ever for Land O'Lakes.

"This $359-million acquisition solidifies our number-one position in the feed industry, opens the door to $50 million in synergies, as well as to increased earnings and cash flows," Knutson said. "It will provide long-term benefits, not just to our farmer-owned feed business, but to our entire system."

Other growth initiatives cited by the cooperative CFO were:

• the acquisition of Kraft's Melrose, Minn., cheese plant and the formation of Melrose Dairy Proteins as a joint venture with Dairy Farmers of America;
• the formation of cheese marketing alliances with Davisco Foods International and Alto Dairy Cooperative; and
• an increased investment in MoArk, an egg production and marketing joint venture, which facilitated additional acquisitions.

Land O'Lakes is a national, farmer-owned food and agricultural cooperative, with annual sales of $6 billion. Land O'Lakes does business in all fifty states and more than fifty countries. It is a leading marketer of a full line of dairy-based consumer, foodservice and food ingredient products across the U.S.; serves international customers with a variety of food and animal feed ingredients; and provides  farmers and local cooperatives with an extensive line of agricultural supplies (feed, seed, crop nutrients and crop protection products) and services.