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Stake Signs Agreement to Acquire Wild West Organic Harvest Co-Operative Association

October 10,2002
Stake Signs Agreement to Acquire Wild West Organic Harvest Co-Operative Association

TORONTO--Oct. 10, 2002--Stake Technology Ltd. (Stake) (Nasdaq:STKL)(TSX:SOY) today announced that it has signed an agreement to acquire privately owned Wild West Organic Harvest Co-Operative Association (Wild West), a Vancouver (Richmond), British Columbia based distributor of organic and natural food products, subject to mutual and customary due diligence. The proposed purchase price is a combination of cash and notes and the acquisition is expected to be accretive to earnings. Growing and profitable, Wild West had sales in the past fiscal year of $16.5 million CDN. Closing is expected to take place by the end of October.

Wild West distributes 2,400 products throughout Western Canada to both the mass market and natural food retail outlets. It has an historical annual growth rate of 43% over the last three years and operates from a newly expanded 38,000 square foot refrigerated and frozen warehouse facility. An organic industry fresh food pioneer with 26 years of operation, Wild West runs one of Canada's only certified organic distribution centres.

Jeremy N. Kendall, Chairman and CEO of Stake Technology Ltd., commented, "Wild West represents the first step in creating a unique organic and natural distribution network, which offers organic and natural food product manufacturers the opportunity of achieving cost effective and broad distribution throughout Canada. In addition, Wild West provides Stake with the opportunity of distributing its own organic brands along with branded products produced by Stake for other manufacturers."

Stephen Easterbrook, President of Wild West who will continue in that position once the acquisition is completed, said, "The combination with Stake provides us with the resources to continue Wild West's rapid sales and profit growth. We look forward to completing arrangements and joining a company and corporate culture that will allow us to maintain our vision of building and integrating supply and distribution channels in the organic and natural foods market."

Stake Technology Ltd. is an owner/operator of high-growth ethical businesses, focused on environmental responsibility and the health and well being of its communities. For the last four consecutive years, Stake was included in Profit magazine's `Profit 100' list of the 100 fastest growing companies in Canada. Currently, the company has three business units: the Food Group, which specializes in identity-preserved (IP) grain products and natural and organic food products; from seed to packaged product; the Environmental Industrial Group; a producer, distributor, and recycler of industrial materials; and the Steam Explosion Technology Group who market clean pulping technologies. Each of these business units has proprietary products and services that give it a solid competitive advantage in its sector.


Note: This news release may contain forward-looking information.
Actual future results may differ materially. The risks, uncertainties,
and other factors that could influence actual results are described in
the Company's Annual Report to shareholders and in SEC reports.


CONTACT: Stake Technology Ltd.
Jeremy N. Kendall, Chairman & C.E.O.
John D. Taylor, President & C.O.O.
Susan Wiekenkamp, Information Officer
Tel: 905-455-1990
Investor Relations Counsel
The Equity Group Inc.
Linda Latman, 212/836-9609

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