TSX: MFI
    www.mapleleaf.com

    TORONTO, July 20 /CNW/ - Maple Leaf Foods (TSX: MFI) today announced that
it has closed the sale of its animal nutrition business to Nutreco Holding NV
("Nutreco") for CAD$500 million plus closing adjustments.
    "We are very pleased to complete this sale to Nutreco," said Michael
McCain, President and CEO of Maple Leaf Foods. "This is another major step on
our transformational journey as we build a highly profitable, value-added
bakery, meat and meals company. The transaction will result in a significant
de-leveraging of our balance sheet and provide Maple Leaf with even more
flexibility to re-invest in our value-added businesses."
    Maple Leaf Foods is reorganizing its protein value chain operations,
which include its animal nutrition, hog production, and fresh and further
processed meats operations, to focus on growth in its branded, value-added
protein and bakery businesses. The Company is on track to complete this
process by the end of 2009, with the objective to significantly increase
earnings and reduce its exposure to underlying currency and commodity
influences.
    Proceeds from the transaction will initially be used to pay down
short-term debt. Proceeds from the transaction will provide the Company with
significant resources to invest in global expansion of its value-added protein
and bakery businesses. The Company's initial estimate of its pre-tax gain on
the transaction is approximately $300 million. The final gain on the sale will
be disclosed after all final adjustments have been accounted for.

    Maple Leaf Foods Inc. is a leading food processing company, headquartered
in Toronto, Canada. The Company employs approximately 22,500 people at its
operations across Canada and in the United States, the United Kingdom and
Asia, and had sales of $5.9 billion in 2006.