Mr. Lino Saputo reports

SAPUTO ANNOUNCES NETWORK OPTIMIZATION INITIATIVES IN ITS USA SECTOR

Following the start-up of its recently converted, state-of-the-art goat cheese manufacturing facility in Reedsburg, Wis., Saputo Inc. will permanently close its Lancaster, Wis., facility. The company intends to transition production from its Lancaster facility to Reedsburg, along with that of its facility in Belmont, Wis., the closure of which was previously announced. The Lancaster and Belmont facilities are expected to close in the fourth quarter of fiscal 2024.

"In line with our global strategic plan, the network optimization initiatives announced today will increase operational efficiency and capacity utilization in our USA sector, while further improving our cost structure," said Lino A. Saputo, chair of the board, president and chief executive officer. "The start-up of our Reedsburg facility marks another milestone on our journey to strengthen the competitiveness and the long-term performance of our USA cheese network."

Costs related to the Lancaster facility closure will be approximately $6-million after taxes, including a non-cash fixed assets write-down of approximately $4-million after taxes. These costs will start to be recorded in the third quarter of fiscal 2024. Approximately 100 employees will be impacted by the Lancaster facility closure. Impacted employees will be offered the opportunity to relocate to other Saputo facilities and, if no positions are available, they will be provided with severance and outplacement support.

About Saputo Inc.

Saputo, one of the top-10 dairy processors in the world, produces, markets and distributes a wide array of dairy products of the utmost quality, including cheese, fluid milk, extended-shelf-life milk and cream products, cultured products, and dairy ingredients. Saputo is a leading cheese manufacturer and fluid milk and cream processor in Canada, a leading dairy processor in Australia and the top dairy processor in Argentina. In the United States, Saputo ranks among the top-three cheese producers and is one of the top producers of extended-shelf-life and cultured dairy products. In the United Kingdom, Saputo is the leading manufacturer of branded cheese and dairy spreads. In addition to its dairy portfolio, Saputo produces, markets and distributes a range of dairy-alternative cheeses and beverages. Saputo products are sold in several countries under market-leading brands, as well as private-label brands.

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