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SunOpta Supports Hurricane Relief

August 08,2005
SunOpta Supports Hurricane Relief

TORONTO--Aug. 8, 2005--SunOpta Inc. (SunOpta or the Company) (Nasdaq:STKL) (TSX:SOY) today announced results for the three months and six months ended June 30, 2005. All amounts are expressed in U.S. dollars.

The Company achieved record revenues for the three months ended June 30, 2005, realizing its first quarter with revenues in excess of $100 million. Revenues in the quarter increased to $103 million from $81 million in the second quarter of the prior year, a 27.1% or $22 million increase. Revenue growth was led by a 29.1% increase in revenues within the Company's vertically integrated natural and organic food operations. The Company's revenue growth rate includes an internal growth rate of 12.8% and growth via acquisitions of 14.3%. For the six months ended June 30, 2005 revenues increased 31.8% to $189 million, compared to $143 million in the prior year.

Revenues in the second quarter exclude any significant contribution from the recently announced acquisitions, and therefore the Company fully expects future quarters to continue to exceed $100 million in revenues. Consequently, the Company is raising its revenue guidance for fiscal 2005 from $385 million to $415 million.

Net earnings after minority interest for the second quarter were $3,307,000 or $0.06 per diluted common share compared to $6,024,000 or $0.11 per diluted common share in the second quarter of the prior year. Earnings in the prior year included a one time award related to a legal settlement. Net earnings after minority interest for the six months ended June 30, 2005 were $9,912,000 or $0.17 per diluted common share compared to $7,894,000 or $0.14 per diluted common share in the prior year. Excluding one-time items in both years, net earnings per diluted common share for the six months ended June 30 were $0.10 in 2005 and $0.11 in 2004.

Net earnings in the second quarter and first six months of 2005 were assisted by strong demand for grain products, and in particular sunflower, and aseptically-packaged products including soy, rice and tea beverages. The shortfall in worldwide supply of sunflower has increased demand and margin for available product.

Net earnings in the quarter versus the prior period were negatively impacted by market issues in the Canadian Food Distribution Group. As previously disclosed, the Company's Distribution Group has encountered issues related to supply, freight, competition and integration in recent quarters and has been focused on addressing these issues. Demand for low-carb products peaked in the second quarter of 2004 and then declined, resulting in a significant downturn in the demand for oat fiber within the SunOpta Ingredients Group. The Company announced that it has implemented significant profit improvement plans in the second quarter, including expansion of its fiber portfolio, expansion of target markets, aggressive pursuit of international sales and cost reductions. These action plans are expected to improve results over the coming quarters.

Earlier today the Company confirmed the receipt of the first StakeTech Steam Explosion equipment contract with Abener Energia S.A. of Seville, Spain, a wholly-owned subsidiary of Abengoa S.A., for the first commercial production facility in the world to convert wheat straw into ethanol. This facility, which is scheduled to be operational in the fall of 2006, will be built in Babilafuente (Salamanca), Spain and is located adjacent to an existing cereal grain to ethanol plant operated by Abengoa. Abengoa is the largest ethanol producer in Europe and the second largest in the world.

Jeremy Kendall, Chairman and Chief Executive Officer of SunOpta stated that "We are pleased with our revenue growth and strategic direction of the Company, however, we are conscious of our need to improve margins in the near term, and with the implementation of profit improvement plans and our marketing strategies, we are confident about the future prospects of SunOpta."

SunOpta Inc. is an operator of high-growth ethical businesses, focusing on integrated business models in the natural and organic food markets. For the last seven consecutive years, SunOpta was included in Profit magazine's 'Profit 100' list of the 100 fastest growing companies in Canada. The Company has three business units: the SunOpta Food Group, which specializes in sourcing, processing and distribution of natural and organic food products integrated from seed through packaged products; the Opta Minerals Group, a producer, distributor, and recycler of environmentally friendly industrial materials; and the StakeTech Steam Explosion Group which engineers and markets proprietary steam explosion technology systems for the pulp, bio-fuel and food processing industries. Each of these business units has proprietary products and services that give it a solid competitive advantage in its sector.

For further information, please contact:
SunOpta Inc.
Jeremy N. Kendall, Chairman & CEO
Steve Bromley, President & COO
John Dietrich, Vice President & CFO
Susan Wiekenkamp, Information Officer
Tel: 905-455-2528, ext 103
swiekenkamp@sunopta.com
Website:  www.sunopta.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 filings. The attached consolidated balance sheet and consolidated statement of earnings are unaudited. The information provided here should be considered in conjunction with the other information included within various SEC documents including Form 10Q reports filed during 2004 and Form 10K report filed March 16, 2005.

SunOpta Inc.
Condensed Consolidated Statements of Earnings
For the three months ended June 30, 2005 and 2004
Unaudited
(Expressed in thousands of U.S. dollars, except per share amounts)

----------------------------------------------------------------------
                                             June 30, June 30,       %
                                                 2005     2004  Change
                                                    $        $
----------------------------------------------------------------------

Revenues                                      102,858   80,946     27%

Cost of goods sold                             84,352   64,690     30%
                                            --------------------------

Gross profit                                   18,506   16,256     14%

Warehousing and distribution expenses           2,589    1,442     80%
Selling, general and administrative expenses   10,269    8,964     15%
                                            --------------------------

Earnings before the following                   5,648    5,850    (3%)

Interest expense, net                            (594)    (135)   340%
Other income (expense)                           (203)   2,482
Foreign exchange                                   45      389   (88)%
                                            --------------------------

                                                 (752)   2,736
                                            --------------------------

Earnings before income taxes                    4,896    8,586   (43%)

Provision for income taxes                      1,354    2,562   (47%)
                                            --------------------------

Net earnings before minority interest           3,542    6,024   (45%)
                                            --------------------------

Minority interest                                 235        -      -
                                            --------------------------

Net earnings for the period                     3,307    6,024   (45%)
                                            --------------------------

Net earnings per share for the period

   - Basic                                       0.06     0.11   (45%)
                                            --------------------------
                                            --------------------------

   - Diluted                                     0.06     0.11   (45%)
                                            --------------------------
                                            --------------------------


SunOpta Inc.
Condensed Consolidated Statements of Earnings
For the six months ended June 30, 2005 and 2004
Unaudited
(Expressed in thousands of U.S. dollars, except per share amounts)

----------------------------------------------------------------------
                                            June 30, June 30,        %
                                                2005    2004    Change
                                                   $       $
----------------------------------------------------------------------
Revenues                                     189,081 143,448       32%

Cost of goods sold                           154,939 114,921       35%
                                           ---------------------------

Gross profit                                  34,142  28,527       20%

Warehousing and distribution expenses          5,193   2,598      100%
Selling, general and administrative
 expenses                                     20,056  16,943       18%
                                           ---------------------------

Earnings before the following                  8,893   8,986      (1%)

Interest expense, net                           (896)   (343)     161%
Other income                                   3,832   2,367       62%
Foreign exchange                                  80     248     (68%)
                                           ---------------------------

                                               3,016   2,272       33%
                                           ---------------------------

Earnings before income taxes                  11,909  11,258        6%

Provision for income taxes                     1,589   3,364     (53%)
                                           ---------------------------

Net earnings before minority interest         10,320   7,894       31%
                                           ---------------------------

Minority interest                                408       -        -
                                           ---------------------------

Net earnings for the period                    9,912   7,894       26%
                                           ---------------------------


Net earnings per share for the period

   - Basic                                      0.18    0.15       20%
                                           ---------------------------
                                           ---------------------------

   - Diluted                                    0.17    0.14       21%
                                           ---------------------------
                                           ---------------------------


SunOpta Inc.
Condensed Consolidated Balance Sheets
As at June 30, 2005 and December 31, 2004
Unaudited
(Expressed in thousands of U.S. dollars, except per share amounts)

----------------------------------------------------------------------
                                                 June 30, December 31,
                                                    2005         2004
                                                       $            $
----------------------------------------------------------------------

Assets

Current assets
Cash and cash equivalents                          7,699        8,081
Accounts receivable                               50,736       38,446
Inventories                                       75,849       49,537
Prepaid expenses and other current assets          4,509        4,472
Current income taxes recoverable                       -        2,000
Deferred income taxes                                421          421
                                               -----------------------

                                                 139,214      102,957

Property, plant and equipment                     73,431       62,619
Goodwill and intangibles                          47,216       43,934
Deferred income taxes                              6,177        6,831
Other assets                                       3,511        3,831
                                               -----------------------

                                                 269,549      220,172
                                               -----------------------
                                               -----------------------
Liabilities

Current liabilities
Bank indebtedness                                 20,693            -
Accounts payable and accrued liabilities          44,765       35,668
Customer and other deposits                          679          431
Current portion of long-term debt                  6,775        4,819
Current portion of long-term payables                338        1,548
                                               -----------------------

                                                  73,250       42,466

Long-term debt                                    33,015       31,003
Long-term payables                                   862        1,232
                                               -----------------------

                                                 107,127       74,701
                                               -----------------------

Minority interest                                  8,946        1,378
                                               -----------------------

Shareholders' Equity

Capital stock                                    106,160      105,794
Contributed surplus                                3,235        3,330
Retained earnings                                 36,733       26,821
Cumulative other comprehensive income              7,348        8,148
                                               -----------------------

                                                 153,476      144,093
                                               -----------------------

                                                 269,549      220,172
                                               -----------------------
                                               -----------------------


SunOpta Inc.
Condensed Notes to Consolidated Financial Statements
For the three and six months ended June 30, 2005
Unaudited
(Expressed in thousands of U.S. dollars, except per share and
 share amounts)

                                                    Three months ended
                                                         June 30, 2005
                             -----------------------------------------
                                                StakeTech
                                                    Steam
                             SunOpta      Opta  Explosion
                                Food  Minerals  Group and
                               Group     Group  Corporate Consolidated
                                   $         $          $            $
                             -----------------------------------------

    Total revenues to
     external customers      92,555     9,839        464      102,858
                             -----------------------------------------

    Segment earnings (loss)
     before other income
     (expense), interest
     expense (net), income
     taxes and minority
     interest                 5,054     1,621       (982)       5,693
                             -----------------------------------------

    Other income (expense)        -         -       (203)        (203)
                             -----------------------------------------

    Segment earnings (loss)
     before interest
     expense (net),  income
     taxes and minority
     interest                 5,054     1,621     (1,185)       5,490
                             -----------------------------------------

    Interest expense, net         -         -        594          594
                             -----------------------------------------

    Provision for income
     taxes                        -         -      1,354        1,354
                             -----------------------------------------

    Minority interest             -       235          -          235
                             -----------------------------------------

    Net earnings (loss)       5,054     1,386     (3,133)       3,307
                             -----------------------------------------



    The SunOpta Food Group has the following segmented reporting:

                                                    Three months ended
                                                         June 30, 2005
                 -----------------------------------------------------
                   Grains &                           Canadian
                        Soy     SunOpta  Packaged         Food SunOpta
                   Products Ingredients  Products Distribution    Food
                      Group       Group     Group        Group   Group
                          $           $         $            $       $
                  ----------------------------------------------------

    Total
     revenues
     from
     external
     customers      27,779      24,878    13,176       26,722  92,555
                  ----------------------------------------------------

    Segment
     earnings
     before other
     income
     (expense),
     interest
     expense
     (net),
     income taxes
     and minority
     interest        2,283       1,651       508          612   5,054
                  ----------------------------------------------------

                                                      Six months ended
                                                         June 30, 2005
                            ------------------------------------------
                                                StakeTech
                                                    Steam
                             SunOpta      Opta  Explosion
                                Food  Minerals  Group and
                               Group     Group  Corporate Consolidated
                                   $         $          $            $
                            ------------------------------------------

    Total revenues to
     external customers     170,760    17,577        744      189,081
                            ------------------------------------------

    Segment earnings (loss)
     before other income
     (expense), interest
     expense (net) and
     income taxes and
     minority interest        8,397     2,458     (1,882)       8,973
                            ------------------------------------------

    Other income (expense)        -         -      3,832        3,832
                            ------------------------------------------

    Segment  earnings
     before interest
     expense (net) , income
     taxes and minority
     interest                 8,397     2,458      1,950       12,805
                            ------------------------------------------

    Interest expense, net         -         -        896          896
                            ------------------------------------------

    Provision for income
     taxes                        -         -      1,589        1,589
                            ------------------------------------------

    Minority interest           104       304          -          408
                            ------------------------------------------

    Net earnings (loss)       8,293     2,154       (535)       9,912
                            ------------------------------------------


SunOpta Inc.
Condensed Notes to Consolidated Financial Statements
For the three and six months ended June 30, 2005
Unaudited
(Expressed in thousands of U.S. dollars, except per share and
share amounts)

The SunOpta Food Group has the following segmented reporting:

                                                      Six months ended
                                                         June 30, 2005
                  ----------------------------------------------------
                    Grains &                          Canadian
                         Soy     SunOpta Packaged         Food SunOpta
                    Products Ingredients Products Distribution    Food
                       Group       Group    Group        Group   Group
                           $           $        $            $       $
                   ---------------------------------------------------

    Total revenues
     from external
     customers       48,585      44,449   25,522        52,204 170,760
                   ---------------------------------------------------

    Segment
     earnings
     before other
     income
     (expense),
     interest
     expense (net)
     and  income
     taxes            3,396       2,757      942         1,302   8,397
                   ---------------------------------------------------

                                                    Three months ended
                                                         June 30, 2004
                  ----------------------------------------------------
                                                StakeTech
                                                    Steam
                    SunOpta                     Explosion
                       Food      Opta Minerals  Group and
                      Group              Group  Corporate Consolidated
                          $                  $          $            $
                  ----------------------------------------------------

    Total
     revenues to
     external
     customers      71,664              8,992        290       80,946
                  ----------------------------------------------------

    Segment
     earnings
     (loss)
     before other
     income
     (expense),
     interest
     expense
     (net),  and
     income taxes    5,542              1,716     (1,019)       6,239
                  ----------------------------------------------------

    Other income
     (expense)           -                  -      2,482        2,482
                  ----------------------------------------------------

    Segment
     earnings
     before
     interest
     expense
     (net) and
     income taxes    5,542              1,716      1,463        8,721
                  ----------------------------------------------------

    Interest
     expense, net        -                  -        135          135
                  ----------------------------------------------------

    Provision for
     income taxes        -                  -      2,562        2,562
                  ----------------------------------------------------

    Net earnings
     (loss)          5,542              1,716     (1,234)       6,024
                  ----------------------------------------------------

    The SunOpta
     Food Group
     has the
     following
     segmented                                      Three months ended
     reporting:                                          June 30, 2004
                 -----------------------------------------------------
                   Grains &                           Canadian
                        Soy     SunOpta  Packaged         Food SunOpta
                   Products Ingredients  Products Distribution    Food
                      Group       Group     Group        Group   Group
                          $           $         $            $       $
                  ----------------------------------------------------

    Total
     revenues
     from
     external
     customers      24,630      16,688    10,943       19,403  71,664
                  --------------------- ------------------------------

    Segment
     earnings
     before other
     income
     (expense),
     interest
     expense
     (net) and
     income taxes    1,366       2,262       493        1,421   5,542
                  --------------------- ------------------------------


SunOpta Inc.
Condensed Notes to Consolidated Financial Statements
For the three and six months ended June 30, 2005
Unaudited
(Expressed in thousands of U.S. dollars, except per share and
share amounts)

                                                      Six months ended
                                                         June 30, 2004
                            ------------------------------------------
                                                StakeTech
                                                    Steam
                             SunOpta      Opta  Explosion
                                Food  Minerals  Group and
                               Group     Group  Corporate Consolidated
                                   $         $          $            $
                            ------------------------------------------

    Total revenues to
     external customers     127,180    15,831        437      143,448
                            ------------------------------------------

    Segment earnings (loss)
     before other income
     (expense), interest
     expense (net) and
     income taxes             8,908     2,368     (2,042)       9,234
                            ------------------------------------------

    Other income (expense)        -         -      2,367        2,367
                            ------------------------------------------

    Segment  earnings
     before interest
     expense (net) and
     income taxes             8,908     2,368        325       11,601
                            ------------------------------------------

    Interest expense, net         -         -        343          343
                            ------------------------------------------

    Provision for income
     taxes                        -         -      3,364        3,364
                            ------------------------------------------

    Net earnings (loss)       8,908     2,368     (3,382)       7,894
                            ------------------------------------------



The SunOpta Food Group
has the following
segmented reporting:
                                                      Six months ended
                                                         June 30, 2004
                   ---------------------------------------------------
                    Grains &                          Canadian
                         Soy     SunOpta Packaged         Food SunOpta
                    Products Ingredients Products Distribution    Food
                       Group       Group    Group        Group   Group
                           $           $        $            $       $
                   ---------------------------------------------------

    Total revenues
     from external
     customers       42,313      31,973   19,490        33,404 127,180
                   ---------------------------------------------------

    Segment
     earnings
     before other
     income
     (expense),
     interest
     expense (net)
     and  income
     taxes            1,833       4,074      422         2,579   8,908
                   ---------------------------------------------------
    CONTACT: SunOpta Inc.
             Jeremy N. Kendall, Steve Bromley, John Dietrich,
             Susan Wiekenkamp, 905-455-2528 ext. 103
             Email: swiekenkamp@sunopta.com
             Website:  www.sunopta.com

    SOURCE: SunOpta Inc.

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