SunOpta Announces Record Second Quarter Results; Revenues Increase 33.5% and Net Earnings Increase 55.4%

August 8, 2007
SunOpta Announces Record Second Quarter Results; Revenues Increase 33.5% and Net Earnings Increase 55.4%

TORONTO--Aug. 8, 2007--SunOpta Inc. (SunOpta or the Company) (Nasdaq:STKL) (TSX:SOY) today announced record results for the second quarter ended June 30, 2007. All amounts are expressed in U.S. dollars.

The Company achieved record revenues for the three months ended June 30, 2007, realizing its 39th consecutive quarter of increased revenue growth versus the same quarter in the previous year. Revenues in the quarter increased by 33.5% to $207,977,000 as compared to $155,745,000 in the second quarter of 2007, led by a 37.9% increase in revenues within the Company's vertically integrated natural and organic food operations. The Company's revenue growth in the quarter reflects an internal growth rate of 16.2% on a consolidated basis and includes internal growth of 19.4% within the SunOpta Food Group.

Operating income (1) for the quarter increased to $11,402,000 as compared to $8,772,000 in 2006, driven by increases in segment operating income in all groups within the SunOpta Food Group and led by the SunOpta Grains and Foods Group and the SunOpta Distribution Group. Net earnings in the quarter were $6,750,000 or $0.11 per diluted common share as compared to $4,343,000 or $0.08 per diluted common share in the prior year.

For the six months ended June 30, 2007 the company has recognized record revenues of $391,417,000 versus $289,057,000 in the same period of the prior year, an increase of 35.4%. Net earnings for the period increased 44.1% to $10,600,000 or $0.17 per diluted common share as compared to $7,355,000 or $0.13 per diluted common share for the same period in 2006.

In the quarter, the SunOpta Food Group reported increased revenues of $189,264,000 as compared to $137,287,000 in the second quarter of 2006, a 37.9% increase. Segment operating income increased to $11,411,000 versus $8,168,000 in 2006, an increase of 39.7%. This increase is after additional corporate cost allocations of $1,326,000. Excluding these allocations, segment operating income increased 55.9%. The improved segment operating income was driven by the continued rebound in sales and margins within sunflower product operations, strong volumes and margins in organic grains, packaged soy milk products and food ingredients, strong demand for organic frozen fruit products and improved margins within the SunOpta Distribution Group. During the second quarter the Company's fruit bar operations continued to implement improvements designed to address ongoing operational issues which have impacted results in the first half of the year. The Company expects significant revenue and margin improvements in these operations as major capacity and equipment upgrades are completed late in the third quarter.

Opta Minerals revenue increased to $18,394,000, due primarily to the acquisition of Bimac Corporation late in 2006, offset by cyclical weakness in the foundry and steel industries. Segment operating income for the quarter declined by 14.0% to $2,061,000 from $2,396,000, due primarily to product mix and reduced sales of higher margin desulphurization products. The Group continues to pursue strategic transactions and new product development to complement its existing product portfolio.

During the quarter the Company completed a $30 million dollar financing within SunOpta BioProcess Inc.(SBI) at a post money valuation of $230 million. The funds from this financing will be used to further leverage its technology and invest directly in the production of cellulosic ethanol. SBI is working toward completion of current proprietary pre-treatment and fiber preparation equipment projects and is pursuing a number of exciting cellulosic ethanol projects in both North America and around the world.

The Company remains well positioned for future growth with working capital of $155,316,000 and total assets of $525,424,000. Capital additions in the quarter were $6,985,000 as compared to $2,069,000 for the same period in the prior year. The long term debt to equity ratio at June 30, 2007 was 0.31:1:00, providing the Company financial resources to invest in internal growth, capital projects and execute on its acquisition program. Book equity per outstanding common share has grown to $3.94 from $3.72 at March 31, 2007.

Steve Bromley, President and Chief Executive Officer of SunOpta commented, "We are very pleased with our second quarter results, driven by solid internal growth of over 19% within our vertically integrated food operations. These earnings are consistent with our expectations for the second quarter and reflect our continued dedication to the growth of our business, both top line and bottom line. Based on these results, we are pleased to increase our annual revenue guidance to $775 to $800 million and confirm our net earnings guidance of $0.35 to $0.40 per share, including the dilutive impact of the additional shares issued during the first quarter."

About SunOpta Inc.

SunOpta Inc. is an operator of high-growth ethical businesses, focusing on integrated business models in the natural and organic food, supplements and health and beauty markets. 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; Opta Minerals Inc. (TSX:OPM) (70.4% owned by SunOpta), a producer, distributor, and recycler of environmentally friendly industrial materials; and SunOpta BioProcess Inc. (80% owned by SunOpta), 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.

Forward-Looking Statements

Certain statements included in this press release may constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to references to business strategies, competitive strengths, goals, capital expenditure plans, business and operational growth plans and references to the future growth of the business. These forward looking statements are based on certain assumptions and analyses made by the Company in light of its experience and its interpretation of current conditions, historical trends and expected future developments as well as other factors that the Company believes are appropriate in the circumstance. However, whether actual results and developments will agree with expectations and predications of the Company is subject to many risks and uncertainties including, but not limited to; general economic, business or market risk conditions; competitive actions by other companies; changes in laws or regulations or policies of local governments, provinces and states as well as the governments of United States and Canada, many of which are beyond the control of the Company. Consequently all forward-looking statements made herein are qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by the Company will be realized.

(1) Operating income and segment operating income are defined as net earnings before other income, interest expense (net), income taxes and minority interest.

SunOpta Inc.
Condensed Consolidated Statements of Earnings
For the three months ended June 30, 2007 and 2006
(Expressed in thousands of U.S. dollars, except per share amounts)
----------------------------------------------------------------------

(Unaudited)                                 June 30,  June 30,
                                                2007      2006      %
                                                   $         $  Change
----------------------------------------------------------------------
Revenues                                     207,977   155,745   33.5%

Cost of goods sold                           167,859   128,399   30.7%
                                            --------------------------

Gross profit                                  40,118    27,346   46.7%

Warehousing and distribution expenses          4,969     3,834   29.6%
Selling, general and administrative
 expenses                                     22,962    14,600   57.3%
Intangible amortization                        1,012       737   37.3%
                                            --------------------------

Earnings before the following                 11,175     8,175   36.7%

Interest expense, net                        (1,817)   (1,748)    3.9%
Other expense                                  (217)     (194)   11.9%
Foreign exchange                                 227       597 (62.0%)
                                            --------------------------

                                             (1,807)   (1,345)   34.3%
                                            --------------------------

Earnings before income taxes                   9,368     6,830   37.2%

Provision for income taxes                     2,296     2,087   10.0%
                                            --------------------------

Net earnings before minority interest          7,072     4,743   49.1%

Minority interest                                322       400 (19.5%)
                                            --------------------------

Net earnings for the period                    6,750     4,343   55.4%
                                            --------------------------

Net earnings per share for the period

   - Basic                                      0.11      0.08
                                            ==========================

   - Diluted                                    0.11      0.08
                                            ==========================
SunOpta Inc.
Condensed Consolidated Statements of Earnings
For the six months ended June 30, 2007 and 2006
(Expressed in thousands of U.S. dollars, except per share amounts)
----------------------------------------------------------------------

(Unaudited)                                  June 30, June 30,
                                                 2007     2006       %
                                                    $        $  Change
----------------------------------------------------------------------
Revenues                                      391,417  289,057   35.4%

Cost of goods sold                            316,457  238,083   32.9%
                                             -------------------------

Gross profit                                   74,960   50,974   47.1%

Warehousing and distribution expenses           9,907    7,492   32.2%
Selling, general and administrative expenses   43,989   27,787   58.3%
Intangible amortization                         1,995    1,281   55.7%
                                             -------------------------

Earnings before the following                  19,069   14,414   32.3%

Interest expense, net                         (3,729)  (3,147)   18.5%
Other expense                                   (406)    (279)   45.5%
Foreign exchange                                  309      389 (20.6%)
                                             -------------------------

                                              (3,826)  (3,037)   26.0%
                                             -------------------------

Earnings before income taxes                   15,243   11,377   34.0%

Provision for income taxes                      4,119    3,490   18.0%
                                             -------------------------

Net earnings before minority interest          11,124    7,887   41.0%

Minority interest                                 524      532  (1.5%)
                                             -------------------------

Net earnings for the period                    10,600    7,355   44.1%
                                             -------------------------

Net earnings per share for the period

   - Basic                                       0.17     0.13
                                             =========================

   - Diluted                                     0.17     0.13
                                             =========================
SunOpta Inc.
Condensed Consolidated Balance Sheets
As at June 30, 2007 and December 31, 2006
(Expressed in thousands of U.S. dollars, except per share amounts)
----------------------------------------------------------------------

(Unaudited)                                      June 30, December 31,
                                                     2007         2006
                                                        $            $
----------------------------------------------------------------------

Assets

Current assets
Cash and cash equivalents                          29,680          954
Accounts receivable                                99,708       73,599
Inventories                                       171,626      126,736
Prepaid expenses and other current assets           7,896        8,129
Current income taxes recoverable                        -        1,829
Deferred income taxes                               1,824        1,824
                                                 ---------------------

                                                  310,734      213,071

Property, plant and equipment                     103,675       87,487
Goodwill                                           54,433       49,457
Intangible assets, net                             48,771       47,943
Deferred income taxes                               5,349        5,615
Other assets                                        2,462        1,157
                                                 ---------------------

                                                  525,424      404,730
                                                 =====================
Liabilities

Current liabilities
Bank indebtedness                                  63,813       40,663
Accounts payable and accrued liabilities           81,799       80,851
Customer and other deposits                           570          957
Current portion of long-term debt                   7,947        8,433
Current portion of long-term payables               1,289        1,736
                                                 ---------------------

                                                  155,418      132,640

Long-term debt                                     68,456       69,394
Long-term payables                                  3,065        3,607
Deferred income taxes                              12,268       12,156
                                                 ---------------------

                                                  239,207      217,797
                                                 ---------------------

Preference shares issued by subsidiary             26,890            -

Minority interest                                  10,809       10,230

Shareholders' Equity

Capital stock                                     166,876      112,318
Contributed surplus                                 4,634        4,188
Retained earnings                                  61,938       51,338
Cumulative other comprehensive income              15,070        8,859
                                                 ---------------------

                                                  248,518      176,703
                                                 ---------------------

                                                  525,424      404,730
                                                 =====================
SunOpta Inc.
Condensed Consolidated Statements of Cash Flow
For the three months ended June 30, 2007 and 2006
(Expressed in thousands of U.S. dollars, except per share amounts)
----------------------------------------------------------------------

                                                     June 30, June 30,
                                                         2007     2006
(Unaudited)                                                 $        $
----------------------------------------------------------------------
Cash provided by (used in)

Operating activities
Net earnings for the period                             6,750    4,343
Items not affecting cash
    Amortization                                        3,496    2,731
    Deferred income taxes                                 983      115
    Minority interest                                     322      400
    Other                                                 307      449
Changes in non-cash working capital                  (21,997)      229
                                                     -----------------

                                                     (10,139)    8,267
                                                     -----------------
Investing activities
Purchase of property, plant and equipment             (6,985)  (2,069)
Acquisition of companies, net of cash acquired       (13,380)        -
Other                                                    (88)      182
                                                     -----------------

                                                     (20,453)  (1,887)
                                                     -----------------
Financing activities
Increase (decrease) in bank indebtedness               32,306  (7,478)
Borrowings under long-term debt                             -      258
Repayment of long-term debt                           (1,518)  (1,160)
Repayment of deferred purchase consideration                -    (260)
Proceeds from the issuance of common shares               887    2,107
Proceeds from the issuance of preference shares by
 subsidiary                                            27,880        -
Other                                                      54    (241)
                                                     -----------------
                                                       59,609  (6,774)


Foreign exchange gain on cash held in a foreign
 currency                                                 214        2
                                                     -----------------

Increase (decrease) in cash and cash equivalents
 during the period                                     29,231    (392)
Cash and cash equivalents - Beginning of the period       449    5,068
                                                     -----------------

Cash and cash equivalents - End of the period          29,680    4,676
                                                     -----------------
SunOpta Inc.
Condensed Consolidated Statements of Cash Flow
For the six months ended June 30, 2007 and 2006
(Expressed in thousands of U.S. dollars, except per share amounts)
----------------------------------------------------------------------

                                                     June 30, June 30,
                                                         2007     2006
(Unaudited)                                                 $        $
----------------------------------------------------------------------
Cash provided by (used in)

Operating activities
Net earnings for the period                            10,600    7,355
Items not affecting cash
    Amortization                                        6,927    5,346
    Deferred income taxes                               1,311      436
    Minority interest                                     524      532
    Other                                                 544      557
Changes in non-cash working capital                  (58,323)  (6,467)
                                                     -----------------

                                                     (38,417)    7,759
                                                     -----------------
Investing activities
Purchase of property, plant and equipment            (12,362)  (4,824)
Acquisition of companies, net of cash acquired       (13,380) (12,197)
Acquisition of patents, trademarks and licences         (887)        -
Other                                                 (1,331)      171
                                                     -----------------

                                                     (27,960) (16,850)
                                                     -----------------
Financing activities
Increase in bank indebtedness                          21,734    5,358
Borrowings under long-term debt                         1,500    2,800
Repayment of term debt                                (7,504)  (2,304)
Repayment of deferred purchase consideration          (1,089)    (260)
Proceeds from the issuance of common shares            52,616    2,977
Proceeds from the issuance of preference shares by
 subsidiary                                            27,880        -
Other                                                       -    (370)
                                                     -----------------
                                                       95,137    8,201


Foreign exchange (loss) gain on cash held in a
 foreign currency                                        (34)      111
                                                     -----------------

Increase (decrease) in cash and cash equivalents
 during the period                                     28,726    (779)
Cash and cash equivalents - Beginning of the period       954    5,455
                                                     -----------------

Cash and cash equivalents - End of the period          29,680    4,676
                                                     -----------------
SunOpta Inc.
Segmented Operations
For the three months ended June 30, 2007 and 2006
(Expressed in thousands of U.S. dollars, except per share amounts)
(Unaudited)
----------------------------------------------------------------------

                                                    Three months ended
                                                         June 30, 2007
                            ------------------------------------------
                                                 SunOpta
                            SunOpta     Opta   BioProcess
                              Food   Minerals        and
                              Group      Inc.   Corporate Consolidated
                                  $         $           $            $

    Total revenue           189,264    18,394         319      207,977
                            ------------------------------------------

    Segment operating
     income                  11,411     2,061     (2,070)       11,402
                            ------------------------------------------
    The SunOpta Food Group has the following segmented reporting:

                                                    Three months ended
                                                         June 30, 2007
                    --------------------------------------------------
                     SunOpta
                      Grains                          SunOpta  SunOpta
                          &      SunOpta SunOpta  Distribution   Food
                      Foods  Ingredients  Fruit         Group    Group
                           $           $       $             $       $

    Total revenues
     from external
     customers        64,618      18,495  54,908        51,243 189,264
                     -------------------------------------------------

    Segment
     operating
     income            4,695       1,972   2,955         1,789  11,411
                     -------------------------------------------------
                                                    Three months ended
                                                         June 30, 2006
                            ------------------------------------------
                                                 SunOpta
                            SunOpta     Opta   BioProcess
                              Food   Minerals        and
                              Group      Inc.   Corporate Consolidated
                                  $         $           $            $

    Total revenue           137,287    18,260         198      155,745
                            ------------------------------------------

    Segment operating
     income                   8,168     2,396     (1,792)        8,772
                            ------------------------------------------
    The SunOpta Food Group has the following segmented reporting:

                                                    Three months ended
                                                         June 30, 2006
                    --------------------------------------------------
                     SunOpta
                      Grains                          SunOpta  SunOpta
                          &      SunOpta SunOpta  Distribution   Food
                      Foods  Ingredients  Fruit         Group    Group
                           $           $       $             $       $

    Total revenue     49,862      17,138  39,491        30,796 137,287
                     -------------------------------------------------

    Segment
     operating
     income            2,273       1,774   2,870         1,251   8,168
                     -------------------------------------------------

SunOpta Inc.
Segmented Operations
For the six months ended June 30, 2007 and 2006
(Expressed in thousands of U.S. dollars, except per share amounts)
(Unaudited)
----------------------------------------------------------------------

                                                      Six months ended
                                                         June 30, 2007
                            ------------------------------------------
                                                 SunOpta
                            SunOpta     Opta   BioProcess
                              Food   Minerals         and
                              Group      Inc.   Corporate Consolidated
                                  $         $           $            $

    Total revenue           355,526    34,857       1,034      391,417
                            ------------------------------------------

    Segment operating
     income                  19,346     3,508     (3,476)       19,378
                            ------------------------------------------
    The SunOpta Food Group has the following segmented reporting:

                                                      Six months ended
                                                         June 30, 2007
                    --------------------------------------------------
                     SunOpta
                      Grains                          SunOpta  SunOpta
                          &      SunOpta SunOpta  Distribution   Food
                      Foods  Ingredients  Fruit         Group    Group
                           $           $       $             $       $

    Total revenue    117,209      36,473  96,342       105,502 355,526
                     -------------------------------------------------

    Segment
     operating
     income            7,403       2,991   4,410         4,542  19,346
                     -------------------------------------------------
                                                      Six months ended
                                                         June 30, 2006
                            ------------------------------------------
                                                 SunOpta
                            SunOpta     Opta   BioProcess
                              Food   Minerals         and
                              Group      Inc.   Corporate Consolidated
                                  $         $           $            $

    Total revenue           256,558    31,305       1,194      289,057
                            ------------------------------------------

    Segment operating
     income                  14,997     3,394     (3,588)       14,803
                            ------------------------------------------
    The SunOpta Food Group has the following segmented reporting:

                                                      Six months ended
                                                         June 30, 2006
                    --------------------------------------------------
                     SunOpta
                      Grains                          SunOpta  SunOpta
                          &      SunOpta SunOpta  Distribution   Food
                      Foods  Ingredients  Fruit         Group    Group
                           $           $       $             $       $

    Total revenues
     from external
     customers        89,016      35,251  70,587        61,704 256,558
                     -------------------------------------------------

    Segment
     operating
     income            4,066       3,480   4,370         3,081  14,997
                     -------------------------------------------------

CONTACT: SunOpta Inc.
Jeremy N. Kendall, Chairman
Steve Bromley, President & CEO
Joseph Riz, Executive Vice President
John Dietrich, Vice President & CFO
Susan Wiekenkamp, Information Officer
Tel: 905-455-2528, ext 103
susan.wiekenkamp@sunopta.com
Website: www.sunopta.com
OR
Investment Community Inquiries:
Lytham Partners, LLC
Joe Diaz
Robert Blum
Joe Dorame
Tel: 602-889-9700
diaz@lythampartners.com

SOURCE: SunOpta Inc.