CROWN SECTOR POSTS STRONG FINANCIAL RESULTS FOR 2008

Saskatchewan's Crown corporation sector had a remarkably solid year financially in 2008, showing record earnings and revenue, in spite of the current global economic crisis.

On a consolidated basis, Crown Investments Corporation (CIC) and its subsidiaries earned a profit of $977 million on revenue of $4.8 billion in 2008. This is an increase of $280.7 million in profits and $385.2 million in revenue over 2007. CIC is the financial holding company for 12 subsidiary commercial Crown corporations.

"It was an exciting, extraordinary year in the Crown sector, which speaks volumes about the strength of our Saskatchewan economy in these turbulent times," Crown Corporation Minister Ken Cheveldayoff said. "There was record demand for Crown corporation services. Our challenge ahead will require change and investment in the Crown sector to sustain and support Saskatchewan's economic momentum."

CIC's earnings as a holding company, which are recorded as non-consolidated earnings, determine the corporation's ability to pay dividends to the province's General Revenue Fund (GRF). Earnings for 2008 were $749.3 million, up $172.4 million from 2007. The increase was due mainly to the sale of Investment Saskatchewan's 49.5 per cent interest in Saskferco, the nitrogen fertilizer plant west of Regina, which generated net proceeds of $816.9 million.

This allowed CIC to pay a special dividend of $365 million to the GRF for 2008.

"The special $365 million dividend will fund government priorities such as highways, debt reduction and the Environmental Green Fund - Go Green," Cheveldayoff said. "In addition, the sale of Saskferco generated a significant return which, we can reinvest in the province. The sale was a triple play because it also benefited our partner Mosaic Canada, and brought Yara International, a world leader in its industry, to Saskatchewan."

In 2009, CIC will declare a regular dividend of $185 million and a special dividend of $110 million.

Other highlights for CIC and the Crown sector in 2008 include:

• A return on equity of 22.2 per cent, compared with 17.8 per cent in 2007;
• Continued stability in the debt ratio, which was 44.6 per cent, compared with 49.6 per cent in 2007;
• Placement of 48 new interns in the Crowns under the Gradworks internship program, which provides work experience and mentorship for recent post-secondary graduates. From the program's inception in 2004 to the end of 2008, there were 268 internships. Nearly 92 per cent of those who have completed their internships have stayed in Saskatchewan, where they have found permanent jobs in the Crowns and other companies;
• CIC's strong cash position allowed CIC to repay $130 million in equity advances to the GRF, helping the province pay down debt in 2008;
• Increased demand for Crown corporation services:
  o 36,000 more registered vehicles in the province;
  o more than 6,000 new customers for SaskEnergy and about 5,700 new services installed in almost 500 communities, resorts, First Nations and rural areas;
  o record new customer connects for SaskPower: 16,162 new service applications.

CIC's 2008 Annual Report is available online at www.cicorp.sk.ca.

-30-

For more information, contact:

Debbie Clark
Crown Investments Corporation
Regina
Phone: 306-787-5451
Email: dclark@cicorp.sk.ca