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Stake Technology Announces Equity Issue to Raise U.S. $49 Million

August 12,2003
Stake Technology Announces Equity Issue to Raise U.S. $49 Million

TORONTO--Aug. 12, 2003--Stake Technology Ltd. (Stake) (Nasdaq:STKL) (TSX:SOY) is pleased to announce that it has commenced a simultaneous offering of 7 million common shares in the United States and certain provinces of Canada. The Company has entered into an agreement with a syndicate of underwriters led by Desjardins Securities Inc. and BMO Nesbitt Burns Inc. as Joint Bookrunners and Co-lead Managers and TD Securities Inc. as Co-lead Manager, for the purchase by the underwriters of 7 million common shares at a price of US $7.00 per common share for aggregate gross proceeds of US $49.0 million (or approximately Cdn. $67.6 million). The Company has also granted to the underwriters an over-allotment option to purchase, at any time up to thirty days after the closing of the offering, up to an additional 500,000 common shares for additional aggregate gross proceeds of US $3.5 million. If this over-allotment option were fully exercised, the total aggregate gross proceeds to the Company would increase to US $52.5 million (or approximately Cdn. $72.5 million).

The net proceeds from the offering will be used primarily for general corporate purposes, including future acquisitions, internal expansion projects and working capital requirements and to reduce outstanding indebtedness. Closing of the offering is expected to take place on August 27, 2003.

A preliminary short-form prospectus for the offering in Canada and a shelf registration statement for the offering in the United States were previously filed with the securities commissions in Ontario, Manitoba, Saskatchewan, Alberta and British Columbia and with the U.S. Securities and Exchange Commission, respectively. A final short-form prospectus and a prospectus supplement will be filed with the applicable Canadian securities commissions and the U.S. Securities and Exchange Commission, respectively, as soon as possible.

This news release does not constitute an offer to sell or the solicitation of any offer to buy, nor will there be any sale of these securities in any state, province or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state, province or jurisdiction. The offering may only be made in the aforementioned provinces of Canada by means of a final prospectus and in the United States only by means of a prospectus and the related prospectus supplement, copies of which may be obtained from Desjardins Securities Inc., BMO Nesbitt Burns Inc. or TD Securities Inc.

Stake Technology Ltd., soon to be SunOpta Inc., is an owner/operator of high-growth ethical businesses, focusing on integrated business models in the natural and organic food markets. For the last five consecutive years, Stake was included in Profit magazine's 'Profit 100' list of the 100 fastest growing companies in Canada. The company has three business units: the Food Group, which specializes in sourcing, processing and distribution of natural and organic food products integrated from seed through packaged products; the Environmental Industrial Group, a producer, distributor, and recycler of environmentally friendly industrial materials; and the Steam Explosion Technology Group which engineers and markets clean pulping systems using patented steam explosion technology. Each of these business units has proprietary products and services that give it a solid competitive advantage in its sector.

Websites: www.staketech.com or www.sunopta.com www.sunrich.com www.bei.ca www.steamexplosion.com www.sunrichvalley.com www.organickitchen.ca www.wildwestorganicharvest.com www.kettlevalley.net www.opta-food.com

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, 905-455-2528
             or
             Steve Bromley, 905-455-2528
             or
             Susan Wiekenkamp, 905-455-2528, ext 103
             info@staketech.com
             or
             The Equity Group Inc.
             Linda Latman, 212-836-9609
             www.theequity.group.com

    SOURCE: Stake Technology Ltd.

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