SunOpta Announces 2007 Year End Financial Results and Also Provides Restated 2007 Quarterly Results

July 21, 2008

TORONTO, Jul 21, 2008 (PrimeNewswire via COMTEX News Network) -- SunOpta Inc. (Nasdaq:STKL) (TSX:SOY) today announced financial results for the year ended December 31, 2007 and also provided restated quarterly financial results for the quarters ended March 31, 2007, June 30, 2007 and September 30, 2007. All amounts are expressed in US dollars.

For fiscal 2007 the Company had revenues of $804,494,000 as compared to revenues of $598,026,000 in 2006, an increase of 34.5%. Fiscal 2007 revenues in the SunOpta Food Group increased to $727,290,000 from $530,453,000 in 2006, or 37.1%, including internal growth of 21.2%. The Company's consolidated internal revenue growth was 18.2%. Revenues in Opta Minerals Inc. increased 17.3% from 2006 to 2007 to $75,365,000 and revenues in SunOpta BioProcess Group declined 44.5% during the same period to $1,839,000. As a result the Company has now realized 41 consecutive quarters of consolidated revenue growth versus the same quarter in the previous year.

Earnings for the year were $407,000, or $0.01 per diluted common share as compared to $10,959,000 or $0.19 per diluted common share in 2006. Earnings for the year were impacted by certain one-time issues as noted below.

Segment operating income(1) decreased in 2007 to $5,662,000, or 75.7% compared to 2006. Segment operating income in the SunOpta Food Group decreased $10,659,000 or 46.3%, driven by a reduction of $24,083,000 in the SunOpta Fruit Group, that resulted from higher inventory, commodity, storage and processing costs, which the group did not fully pass on to customers and higher SG&A to support this segment. This shortfall was offset by strong gains in the balance of the Company's Food operations. The SunOpta Grains and Foods Group realized a 156.2% increase in segment operating income, driven by strong demand for natural and organic grains and grains based ingredients and packaged products combined with the turnaround in the group's sunflower business. The SunOpta Distribution Group realized a 65.3% increase in segment operating income as a result of continued internal growth and efficiency gains combined with the impact of acquisitions completed in 2006 and 2007. The SunOpta Ingredients Group also realized a 13.5% increase in segment operating earnings as a result of increased volumes and operating efficiencies.

(1) Earnings before dilution gain, goodwill impairment, interest, taxes and minority interest.

Segment operating income within Opta Minerals Inc. in 2007 was $6,668,000 as compared to $6,876,000 in 2006, a decline of $208,000, or 3.0%, reflecting the positive impact of acquisitions completed in 2006 and 2007, offset by declines in certain legacy sectors due to cyclical economic weakness. The combined SunOpta BioProcess and Corporate Group segment operating income declined $6,769,000 from 2006 to 2007 due to reduced margins on certain equipment contracts, a provision of $3,342,000 against a disputed equipment supply contract and increased corporate, legal and professional fees, related primarily to the incremental year end activities.

At December 31, 2007, the Company's balance sheet reflected a current working capital ratio of 1.87 to 1.00, long-term debt to equity ratio of 0.39 to 1.00 and total debt to equity ratio of 0.62 to 1.00. The Company had total assets on December 31, 2007 of $564,540,000 and a net book value of $3.97 per outstanding share. The Company has obtained a waiver from its lending syndicate for the fiscal year ended December 31, 2007 and March 31, 2008 and amendments to certain covenants for the fiscal quarters ending June 30, 2008, September 30, 2008, December 31, 2008 and March 31, 2009 and the fiscal year ending December 31, 2008.

The Company has restated financial results for the quarters ended March 31, 2007, June 30, 2007 and September 30, 2007 to reflect adjustments required to account primarily for the previously announced inventory write-downs and other adjustments in the SunOpta Fruit Group. Earnings per share for the quarter ended March 31, 2007 were amended to $0.02 per diluted common share versus the previously reported $0.06 per diluted common share; earnings for the quarter ended June 30, 2007 were amended to $0.05 per diluted common share versus the previously reported $0.11 per diluted common share; and earnings per share for the quarter ended September 30, 2007 were amended to $0.05 per diluted common share versus the previously reported $0.08 per diluted common share.

The Company expects to file its annual report on Form 10-K for the year ended December 31, 2007 and amended quarterly reports on Forms 10-QA for the quarters ended March 31, 2007, June 30, 2007 and September 30, 2007 by the close of business on July 21, 2008. In addition, the Company expects to file a Form 10-Q for the quarter ended March 31, 2008 by July 31, 2008. At that time the Company plans to host a shareholder conference call to discuss the results and ongoing business activities.

The Company anticipates filing results for the second fiscal quarter ended June 30, 2008 by August 9, 2008 and plans to host a shareholder call at the time to further discuss the results and update ongoing business activities.

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 and natural health products integrated from seed through packaged products; Opta Minerals Inc. (TSX:OPM) (66.6% owned by SunOpta), a producer, distributor, and recycler of environmentally friendly industrial materials; and the SunOpta BioProcess Inc. which engineers and markets proprietary steam explosion technology systems for the bio-fuel, pulp and food processing industries. Each of these business units has proprietary products and services that give it a solid competitive advantage in its sector.

The SunOpta Inc. logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=3958

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 the timing for filing the Company's periodic report and release of financial results. Whether actual timing will agree with expectations and predications of the Company is subject to many risks and uncertainties including, but not limited to, completion of the Company's internal and the external accounting procedures, which is partially 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.

 SunOpta Inc.
 Consolidated Statements of Earnings and Comprehensive Income
 For the years ended December 31, 2007 and 2006
 Unaudited
 (Expressed in thousands of U.S. dollars, except per share amounts)
 -------------------------------------------------------------------
                                          2007       2006         %
                                             $          $     change


 Revenues                               804,494    598,026      34.5%

 Cost of goods sold                     676,360    496,292      36.3%
                                        ----------------------------

 Gross profit                           128,134    101,734      26.0%

 Warehousing and distribution
  expenses                               20,899     16,114      29.7%
 Selling, general and administrative
  expenses                               97,911     59,272      65.2%
 Intangible asset amortization            4,201      2,864      46.7%
 Other expense, net                       1,187      1,147       3.5%
 Foreign exchange (gain) loss              (539)       186    (389.8%)
                                        ----------------------------

 Earnings before the following            4,475     22,151     (79.8%)

 Dilution gain                              693         --        --
 Goodwill impairment                       (996)        --        --
 Interest expense, net                   (8,823)    (7,021)     25.7%
                                        ----------------------------

 (Loss) earnings before income taxes     (4,651)    15,130    (130.7%)

 (Recovery of) provision for
  income taxes                           (6,101)     3,129    (295.0%)
                                        ----------------------------

 Earnings before minority interest        1,450     12,001     (87.9%)

 Minority interest                        1,043      1,042       0.1%
                                        ----------------------------

 Earnings for the year                      407     10,959    (96.3%)
                                        ----------------------------

 Earnings per share for the year

  Basic                                    0.01       0.19
                                        ------------------

  Diluted                                  0.01       0.19
                                        ------------------

 SunOpta Inc.
 Consolidated Balance Sheets
 As at December 31, 2007 and 2006
 Unaudited
 (Expressed in thousands of U.S. dollars)
 -------------------------------------------------------------------
                                                     2007      2006
                                                        $         $

 Assets

 Current assets
 Cash and cash equivalents                          30,302       954
 Accounts receivable                                87,729    73,599
 Inventories                                       182,729   126,736
 Prepaid expenses and other current assets          10,201     8,129
 Current income taxes recoverable                    1,491     1,829
 Deferred income taxes                               1,749     1,824
                                                   -----------------
                                                   314,201   213,071

 Property, plant and equipment                     116,389    87,487
 Goodwill                                           55,503    50,521
 Intangible assets                                  62,076    46,879
 Deferred income taxes                              14,110     5,615
 Other assets                                        2,261     1,157
                                                   -----------------
                                                   564,540   404,730
                                                   -----------------
 Liabilities

 Current liabilities
 Bank indebtedness                                  58,806    40,663
 Accounts payable and accrued liabilities           93,462    80,851
 Customer and other deposits                         1,300       957
 Current portion of long-term debt                  13,119     8,433
 Current portion of long-term liabilities            1,304     1,736
                                                   -----------------
                                                   167,991   132,640

 Long-term debt                                     85,595    69,394
 Long-term liabilities                               3,275     3,607
 Deferred income taxes                              11,430    12,156
                                                   -----------------
                                                   268,291   217,797
                                                   -----------------

 Minority interest                                  13,863    10,230

 Preferred shares of subsidiary company             27,409        --

 Shareholders' Equity

 Capital stock                                     176,547   112,318
 Authorized
   Unlimited common shares without par value
 Issued
  64,149,593 (December 31, 2006 -
   57,672,053) common shares
 Additional paid in capital                          5,967     4,188
 Retained earnings                                  51,845    51,338
 Accumulated other comprehensive income             20,618     8,859
                                                   -----------------
                                                   254,977   176,703
                                                   -----------------
                                                   564,540   404,730
                                                   -----------------



 SunOpta Inc.
 Consolidated Statements of Cash Flows
 For the years ended December 31, 2007 and 2006
 Unaudited
 (Expressed in thousands of U.S. dollars)
 -------------------------------------------------------------------
                                                   2007        2006
 Cash provided by (used in)                           $           $

 Operating activities
 Earnings for the year                               407      10,959
 Items not affecting cash;
   Amortization                                   15,058      11,701
   Deferred income taxes                          (8,752)         72
   Minority interest                               1,043       1,042
   Write-off of other assets                       1,005          --
   Goodwill impairment                               996          --
   Stock based compensation                          867         556
   Loss on disposal of property,
    plant and equipment                              663          --
   Write-off of legal receivable                     501          --
   Loss on fair value of interest
    rate swap at inception                           254          --
   Non-cash interest accretion                       217          --
   Dilution gain                                    (693)         --
   Other                                             744         (11)
   Changes in non-cash working capital,
    net of businesses acquired                   (47,387)    (14,815)
                                                --------------------
                                                 (35,077)      9,504
                                                --------------------
 Investing activities
 Acquisition of companies,
  net of cash acquired                           (21,319)    (33,188)
 Purchases of property,
  plant and equipment, net                       (29,686)    (10,911)
 Proceeds from sale of property,
  plant and equipment                                 65         193
 Purchase of patents, trademarks
  and other intangible assets                     (1,805)        (95)
 Increase in other assets                         (1,076)         --
 Other                                              (282)      2,605
                                                --------------------
                                                 (54,103)    (41,396)
                                                --------------------

 Financing activities
 Increase in line of credit facilities            18,011      12,666
 Proceeds from the issuance of preferred
  shares by subsidiary                            27,954          --
 Borrowings under long-term debt                  33,216      15,373
 Repayment of long-term debt                     (21,127)     (4,534)
 Payment of deferred purchase consideration       (2,156)       (356)
 Proceeds from the issuance of
  common shares, net of issuance costs            54,989       4,501
 Proceeds from exercise of warrants                7,501          --
 Other                                              (357)       (390)
                                                --------------------
                                                 118,031      27,260
                                                --------------------
 Foreign exchange gain on cash held
  in foreign currency                                497         131
                                                --------------------

 Increase (decrease) in cash and
  cash equivalents during the year                29,348      (4,501)

 Cash and cash equivalents - beginning of year       954       5,455
                                                --------------------
 Cash and cash equivalents - end of year          30,302         954
                                                --------------------



SunOpta Inc.
Segmented Information
For the years ended December 31, 2007 and 2006
Unaudited
(Expressed in thousands of U.S. dollars)
 --------------------------------------------------------------------
                                                  Twelve months ended
                                                    December 31, 2007
                              ---------------------------------------
                                                    SunOpta
                                           Opta  BioProcess
                              SunOpta  Minerals        and   Consoli-
                           Food Group      Inc.   Corporate    dated
                                    $         $           $         $
                              ---------------------------------------
 Total revenues
  from external
  customers                   727,290    75,365       1,839   804,494
                              ---------------------------------------
 Segment Operating
  Income(1)                    12,348     6,668     (13,354)   5,662
                              ---------------------------------------

 The SunOpta Food Group has the following segmented reporting:

                                                 Twelve months ended
                                                   December 31, 2007
                       ---------------------------------------------

                                                    SunOpta
                        SunOpta   SunOpta           Distri-  SunOpta
                       Grains &  Ingredi-  SunOpta   bution     Food
                          Foods      ents    Fruit    Group    Group
                              $         $        $        $        $
                       ---------------------------------------------

 Total revenues
  from external
  customers             246,392    74,704  186,684  219,510  727,290
                       ---------------------------------------------

 Segment Operating
  Income(1)              14,993     6,008  (17,682)   9,029   12,348
                       ---------------------------------------------

                                                  Twelve months ended
                                                    December 31, 2006
                             ----------------------------------------
                                                    SunOpta
                                           Opta  BioProcess
                              SunOpta  Minerals         and  Consoli-
                           Food Group      Inc.   Corporate    dated
                                    $         $           $         $
                             ----------------------------------------
 Total revenues
  to external
  customers                   530,453    64,261       3,312   598,026
                             ----------------------------------------

 Segment Operating
  Income(1)                    23,007     6,876      (6,585)   23,298
                             ----------------------------------------

The SunOpta Food Group has the following segmented reporting:

                                                 Twelve months ended
                                                   December 31, 2006
                       ---------------------------------------------

                                                    SunOpta
                        SunOpta   SunOpta           Distri-  SunOpta
                       Grains &  Ingredi-  SunOpta   bution     Food
                          Foods      ents    Fruit    Group    Group
                              $         $        $        $        $
                       ---------------------------------------------
 Total revenues
  from external
  customers             185,646    66,465  142,817  135,525   530,453
                       ----------------------------------------------
 Segment Operating
  Income(1)               5,852     5,293    6,401    5,461    23,007
                       ----------------------------------------------

(1)(Segment Operating Income is defined as "Earnings before
 the following" excluding the impact of "other expense, net")

This news release was distributed by PrimeNewswire, www.primenewswire.com

SOURCE: SunOpta Inc.

SunOpta Inc.
          Jeremy N. Kendall, Chairman
          Steve Bromley, President & CEO
          John Dietrich, Vice President & CFO
          Tony Tavares, Chief Operating Officer
          Susan Wiekenkamp, Information Officer
            905-455-2528, ext 103
            susan.wiekenkamp@sunopta.com
          www.sunopta.com

          Lytham Partners, LLC
          Investment Community Inquiries:
          Joe Diaz
            diaz@lythampartners.com 
          Robert Blum
          Joe Dorame
          602-889-9700

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