CROWN SECTOR POSTS SOLID FINANCIAL PERFORMANCE IN 2004

Saskatchewan's Crown corporation sector posted strong revenue and earnings in 2004, while at the same time keeping government's commitment to provide Saskatchewan families with the lowest-cost bundle of basic utility rates in Canada.

The results were made public today when Crown Investments Corporation of Saskatchewan (CIC) tabled its 2004 Annual Report with the Legislative Assembly. CIC is the financial holding company for Saskatchewan's commercial Crown corporations and publicly owned investments.

"In 2004, CIC and its subsidiaries had consolidated earnings of $312.1 million on revenue of $4.1 billion," Crown Management Board Minister Pat Atkinson said. "This good performance allowed us to pay total dividends of $268 million to the province's General Revenue Fund (GRF) to support health, education, infrastructure and agriculture in Saskatchewan.

"We also kept our commitment to provide the lowest-cost bundle of basic utility rates in Canada by delivering a rebate of $137 to 380,000 Saskatchewan households in December 2004. The cost of this commitment was just over $52 million."

The $268 million dividend included a regular dividend of $188 million plus $80 million in special dividends – $5 million in support of Centennial projects and events, and $75 million for the Canadian Agriculture Income Stabilization (CAIS) Program.

"This is a significant contribution to programs and services that are priorities for government and for Saskatchewan citizens," Atkinson said. "Since 1995 the Crown sector has provided $2.1 billion to the GRF in dividends and equity repayments."

Total Crown sector debt at the end of 2004 was $3.4 billion. The debt ratio remained constant at 51 per cent because debt increased by less than $3 million. Since 1991, Crown sector debt has been reduced by $2 billion.

CIC's 2004 Annual Report is available on the internet at www.cicorp.sk.ca/pubs/annreport2004.html. A Summary Annual Report for the Crown sector, including a report on the 2004 basic utility bundle and rebate program, will be mailed to all homes in Saskatchewan in late May.

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For More Information, Contact:

Karen Schmidt CIC Regina Phone: (306) 787-5889