TSX: MFI

    TORONTO, Dec. 16 /CNW/ - Maple Leaf Foods (TSX:MFI) is pleased to
announce that it has closed its previously announced financing to issue, on a
private placement basis, 7,368,421 units at a price of $9.50 per unit for
aggregate proceeds of $70 million. The net proceeds after issuance costs will
be used for general corporate purposes.
    "This financing provides Maple Leaf Foods with the flexibility to support
our strategic initiatives and rebuild our business through these difficult
credit markets," said Michael Vels, Chief Financial Officer. At the same time,
the structure provides the Company with the flexibility of minimizing dilution
to existing shareholders. The transaction reflects the strong support of our
major shareholders and other new investors, who are confident in our ability
to build shareholder value."
    Each unit will consist of one subscription receipt for Maple Leaf Foods
common shares and 0.4 common share purchase warrants. Each subscription
receipt will entitle the holder to receive one common share of the Company on
August 4, 2009 or, at the election of the Company, the return in cash of all
the unit proceeds at a value of $9.50 per unit. Each whole common share
purchase warrant is exercisable into one common share of the Company until
December 16, 2010 at a price of $9.50.

    Maple Leaf Foods Inc. is a leading food processing company, headquartered
in Toronto, Canada. The Company employs approximately 23,000 people at its
operations across Canada and in the United States, the United Kingdom and
Asia. The company had sales of $5.2 billion in 2007.

    This press release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of the securities
in any jurisdiction in which such offer, solicitation or sale would be
unlawful. This press release is not an offer of securities for sale in the
United States. The securities may not be offered or sold in the United States
absent registration or an exemption from registration.