UGG today announced its intent to purchase the assets and ongoing business of Alix Fertilizer Ltd., a retail crop input business located in central Alberta. Alix Fertilizer currently sells dry and anhydrous ammonia fertilizer, crop protection products, and seed and provides a broad range of agronomic and custom application services. 

UGG will also be investing in a new dry fertilizer blending and storage facility at Alix during the
summer of 2000. This will expand capacity and increase the efficiency of the current operation. 

Upon closing the transaction, Alix Fertilizer management and staff will join UGG and continue to
operate the business, in co-operation with other UGG locations. 

"UGG is a good company and I expect we'll continue to provide the same high level of service
that customers receive right now,'' said Norm Stone of Alix Fertilizer 

Alix is located midway between Stettler and Lacombe at the junction of highways 12 and 601.
This acquisition will complement UGG grain handling and crop input facilities in Stettler, Olds and
Carseland. 

"We're looking at making Alix a key part of our long term plans for central Alberta,'' said Todd
Ormann, UGG Territory Manager. 

"I expect local farmers will begin to notice increased competition for their grain almost
immediately," said Ormann. 

The companies expect the purchase to be completed by March 31, 2000, subject to signing of a
purchase agreement and satisfaction of due diligence conditions. Terms of the deal are not being
disclosed. 

UGG is one of western Canada's largest agribusiness firms. Founded in 1906, the Winnipeg based company is diversified into crop input sales, grain merchandising, livestock production services and farm business communications. UGG is publicly traded on the Toronto Stock Exchange and Winnipeg Stock Exchange under the symbol "UGG''. 

Company news release
N2569