7 March 2025

Saputo Dairy Australia (SDA) is pleased to announce it has entered into a binding agreement to sell its King Island Dairy business. As part of the agreement, impacted employees will receive an offer to transfer their employment to the new owner to help support the future of King Island Dairy and its renowned specialty cheese products.

Following last September’s closure announcement, Saputo continued to work collaboratively with the Tasmanian Government as part of ongoing efforts to identify a more favourable outcome. As King Island Dairy’s historic roots are deeply embedded in the region, SDA remained hopeful of finding an alternative solution given the substantial impact on employees and the broader community.

Gerard Lourey, SDA Director of Operations and Supply Chain, said that while the pathway to achieving a sale has not been straightforward, Saputo took great care to find a suitable buyer that we believe is committed to continuing the manufacturing operations and preserving jobs on King Island.

“We are very pleased to have reached a sale agreement for the buyer to purchase the King Island Dairy facility and brand, the onsite Cheese Store and two local farms that provide a guaranteed milk supply.

“We deeply appreciate the ongoing support of our dedicated King Island employees, suppliers, customers, the local council and the Tasmanian Government during this challenging period for King Island Dairy. We thank them for their patience, resilience and collaboration.

“While King Island Dairy will not be part of our portfolio moving forward, SDA remains committed to further growing the value of our domestic and premium export products as part of our long-term vision for success in Australia,” he said.

All impacted employees have been advised of the sale, with the sale transaction expected to be completed by mid-year. SDA will work closely with the site team and provide all necessary support to ensure a successful transition to the new owner.

Note to editors: The buyer is a newly formed entity, King Island Dairy 2 Pty Ltd, led by two experienced Australian businessmen with supply chain and manufacturing expertise. While SDA has disclosed the sale to notify and provide certainty for our employees, the buyer will make their own announcement in the coming days.

About Saputo Dairy Australia

Saputo Dairy Australia produces, markets and distributes a wide range of high-quality dairy and non-dairy products for the domestic and international markets including cheese, dairy alternative cheese, fluid milk, extended shelf-life milk and cream products, cultured products and dairy ingredients. Saputo is a leading dairy processor in Australia and is part of Saputo Inc., one of the top ten dairy processors in the world. Saputo Dairy Australia products are sold in several countries under well-known brand names such as Caboolture, CHEER™, Cracker Barrel*, Devondale, Great Ocean Road, King Island Dairy, Liddells, Mersey Valley, MG Ingredients, Mil Lel, Sheese, South Cape, Sungold and Tasmanian Heritage.
Visit us online: www.saputodairyaustralia.com.au | www.saputo.com
*Cracker Barrel is a registered trademark of Lactalis Heritage Dairy used under licence.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS
This media release contains statements which are forward-looking statements. These forward-looking statements include, among others, statements with respect to the expected sale of its King Island Dairy business, the timing of this expected sale, as well as SDA’s production, employees, projects and objectives. The words “may”, “could”, “should”, “will”, “would”, “believe”, “plan”, “anticipate”, intend” or “expect”, or the negative of these terms or variations of them, the use of conditional or future tense or words and expressions of similar nature, are intended to identify forward-looking statements. All statements other than statements of historical fact included in this news release may constitute forward-looking statements within the meaning of applicable securities laws.

By their nature, forward-looking statements are subject to inherent risks and uncertainties. Actual results could differ materially from those stated, implied, or projected in such forward-looking statements. As a result, Saputo Inc. and SDA cannot guarantee that any forward-looking statements will materialize, and we warn readers that these forward-looking statements are not statements of historical fact or guarantees of future performance in any way. Assumptions, expectations, and estimates made in the preparation of forward-looking statements and risks and uncertainties that could cause actual results to differ materially from current expectations are discussed in our materials filed with the Canadian securities regulatory authorities from time to time, including the “Risks and Uncertainties” section of Saputo Inc.’s Management's Discussion and Analysis dated June 6, 2024, available on SEDAR+ under Saputo Inc.'s profile at www.sedarplus.ca, and also include uncertainties as to the timing of the intended sale, the risk that the intended sale may not be completed in a timely manner or at all, and the possibility that any or all of the various conditions to the consummation of the intended sale may not be satisfied or waived.

Forward-looking statements are based on Management’s current estimates, expectations and assumptions. Management believes that these estimates, expectations, and assumptions are reasonable as of the date hereof, and are inherently subject to significant business, economic, competitive, and other uncertainties and contingencies regarding future events, and are accordingly subject to changes after such date. Forward-looking statements are intended to provide stakeholders with information regarding Saputo Inc. and SDA, and may not be appropriate for other purposes. Undue importance should not be placed on forward-looking statements, and the information contained in such forward-looking statements should not be relied upon as of any other date.

Unless otherwise indicated by Saputo Inc. or SDA, forward-looking statements in this news release describe our estimates, expectations and assumptions as of the date hereof, and, accordingly, are subject to change after that date. Except as required under applicable securities legislation, Saputo Inc. and SDA do not undertake to update or revise forward-looking statements, whether written or verbal, that may be made from time to time by itself or on our behalf, whether as a result of new information, future events, or otherwise. All forward-looking statements contained herein are expressly qualified by this cautionary statement.

- Ends -

Media inquiries: sda.communications@saputo.com