Jan. 10 2003 - The Wave News Network - Heinz Canada and Snow crest Packers Ltd. today jointly announced they have finalized an agreement for Snow crest Packers Ltd. to acquire Omstead Foods Ltd. Headquartered in Abbotsford, B.C. Snow crest Packers Ltd. is a leading supplier of fruits and vegetables in Western Canada.

The sale includes a distribution center and the production operations at the two Omstead factories in Wheatley, Ontario employing about 400 people. The two plants provide frozen vegetables and coated appetizers for the foodservice market and fish for export sales. Key export markets for fish are Japan, Taiwan, Europe and the United States. The collective agreements with the two unions representing Omstead employees will remain in effect.

Both companies called the proposed transaction a mutually beneficial agreement that complements their respective growth strategies.

"The proposed divestiture of the Omstead business advances Heinz's strategy of focusing on growth in its core branded foodservice lines including Heinz ketchup, single serve items, premium sauces, pizza sauces and Chef Francisco soups," said Heinz Canada President and CEO James J. Krushelniski. "It will enable us to allocate greater resources and expertise toward product innovation and marketing programs in our key grocery and foodservice branded product categories."

Snow crest Packers Ltd. General Manager Michael Walker said, "We are extremely pleased about the proposed agreement to acquire the Omstead business and are confident that the company will continue its long record of success. We look forward to strengthening Omstead's market position in the frozen foodservice category and to leveraging the synergies with Snowcrest's related existing frozen fruit and vegetable business."

As part of the proposed agreement, Heinz Canada will provide services in functions such as consumer relations, IT, finance, sales, marketing and customer relations to successfully transition the Omstead business to Snow crest Packers for a period of approximately twelve months.

About OMSTEAD FOODS LTD.: Based in Wheatley, Ontario, Omstead Foods Ltd. has operated since 1911 making it one of the oldest food companies in southwestern Ontario. The company currently provides a wide range of frozen vegetable products including carrots, peas, celery and beans to the Canadian foodservice market. Its coated appetizer line includes onion rings, potatoes, cheese, zucchini, mushrooms and other vegetables. Omstead also operates a fish business - providing pickerel, yellow perch and smelt from Lake Erie for export to the U.S., Japan and Europe. Omstead Foods Ltd. was acquired by Heinz in 1991.

About Snow crest PACKERS LTD.: Based in Abbotsford, B.C., Snow crest Packers Ltd. is a leading supplier of frozen fruits and vegetables in Western Canada for more than 40 years. The company currently markets products under the brand names Snow crest, Delnor, Pennysaver and Brentwood.

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Heinz Canada and Snowcrest Packers finalize deal for Omstead Foods