SASKATOON, Saskatchewan -- Potash Corporation of Saskatchewan Inc. today purchased an additional 10.01 percent of Sinochem Hong Kong Holdings Limited for US $126 million, completing the exercise of its option on these shares.



This raised PotashCorp's ownership interest in Sinofert to 20 percent and includes the right to nominate a second member to Sinofert's Board of Directors. PotashCorp initially purchased 9.99 percent of Sinofert for $97 million under a Strategic Investment Agreement signed with a subsidiary of Sinochem Corporation on June 7, 2005.



Sinochem, a member of the Fortune Global 500 for the past 15 years, had sales of US $20.4 billion in 2004. The initial agreement gave PotashCorp the right to expand its ownership position in Sinofert no earlier than January 27, 2006. An announcement of the decision to exercise this option was made on January 31, 2006.



Sinofert is a leading fertilizer enterprise in the People's Republic of China (PRC). One of the largest importers of fertilizer products in the PRC in terms of import volume, it is the largest distributor of these products and is also a major producer of phosphate-based fertilizer products. At the end of November 2005, it had 14 branch offices and 1,036 sales centers as part of an extensive distribution network that provided products to 76 percent of total sown lands in China.



Potash Corporation of Saskatchewan Inc. is the world's largest fertilizer enterprise producing the three primary plant nutrients. It is a leading supplier to three distinct market categories: agriculture, animal nutrition and industrial chemicals.



SOURCE: Potash Corporation of Saskatchewan Inc. via PR Newswire.