April 30, 2001

TORONTO, ONTARIO -

Dominion Citrus Limited First Quarter 2001 Report to Shareholders

First Quarter 2001 Report to Shareholders

Three months ended March 23, 2001

1ST QUARTER HIGHLIGHTS

The company's operating income was $0.564 million for the quarter, compared to $0.380 million a year ago, an improvement of 48%.

Net Earnings, before restructuring costs, was $0.411 million or $0.025 earnings per share, compared to $0.282 million or $0.017 earnings per share last year, a 46% improvement.

The company generated $1.550 million in Cash Flow from Operations during the quarter. This $1.091 million improvement in operating cash flow versus the 1st quarter in FY 2000, was driven by strong operating earnings and improved working capital management.

Cash on hand increased to $1.120 million at March 23, 2001, from a zero balance at December 31, 2000.

Total Revenue of $22.762 million was up 1.3% over the similar period a year ago, while the Gross Margin rate improved by 80 basis points to 16.6%.

The company completed its restructuring with Algonquin Mercantile Corporation and commenced trading on The Toronto Stock Exchange, under the symbol "DMN" on March 7, 2001.

Subsequent to the quarter end, the company announced the appointment of Mr. Gary M. Dephoure as VP Finance & Chief Financial Officer.

DOMINION CITRUS LIMITED ANNOUNCES RECORD REVENUES, OPERATING CASH FLOW AND EARNINGS IN THE FIRST QUARTER

Dominion Citrus Limited (TSE:DMN) announced record revenue, operating cash flow and operating income results for the first quarter of fiscal 2001. Revenue of $22.762 million was up 1.3% versus the 1st quarter last year, while Net Earnings of $0.411 million (excluding a restructuring charge), was $0.025 per common share, compared to $0.282 million or $0.017 per common share in fiscal 2000. This represents a 46% year over year improvement.

Additionally, the company's solid operating results coupled with improved working capital management left the company with $1.120 million in cash and cash equivalents at quarter end, up from a nil balance at December 31, 2000.

"Our earnings to-date in fiscal 2001 reflect solid year over year operating performance across our business segments, with management focused on driving operating margin improvements through business scale, strategic partnerships and cost efficiency initiatives," said Michael Blair, Dominion Citrus Limited Chairman and CEO.

"While wholesale market conditions at the Ontario Food Terminal remain extremely competitive, we have been able to improve our consolidated year over year gross margin rate by 80 basis points to 16.6%. Additionally, the company was able to reduce the total dollars expended on Selling, General & Administrative activities on a year over year basis. Finally, the company started a number of initiatives aimed at improving operating cash flow, which resulted in Dominion Citrus Limited generating $1.550 million in operating cash flow during the quarter" said Blair.

Jacques Lavergne, President said, "The recent secondary offering and listing of Dominion Citrus Limited shares on the Toronto Stock Exchange, presents our company management and all our employees an opportunity to fully align themselves with our primary objective of increasing shareholder value. Our employees are excited about the challenge of growing each of our operating businesses, and I know we are well positioned to take advantage of our scale and solid financial position to leverage the consolidation opportunities occurring in our industry."

Revenue

Dominion Citrus Limited (Dominion Citrus) revenue for the quarter ended March 23, 2001 was $22.762 million, an increase of $0.288 million or 1.3% versus the same period a year ago. The increase in revenue resulted from exceptionally strong revenue performance at the Country Fresh Division, achieved through a better than anticipated tomato pricing environment, as well as the introduction of a new marketing program with a major orange supplier to the Quebec market. The Apple Valley Division experienced a 7.6% improvement in revenue to $1.617 million, with unit volume shipments up in excess of 13%.

Somewhat offsetting this solid performance, was flat revenue from the Ontario Food Terminal Division. While overall case unit volume shipped declined by over 8%, this was offset by better pricing per case across most commodities compared to the 1st quarter 2000. However, an over supply of grapes on the market resulted in a price per case decrease of 17%, while a shortage of Florida vegetables, owing to a late December freeze, mitigated the pricing and unit volume improvements generated by the other commodities.

Gross Margins

Consolidated Gross Margins for the period totalled $3.785 million or 16.6%. This compares favourably with the 15.8% Gross Margin Rate achieved during the 1st quarter 2000. The Gross Margin rate improvement was driven by stronger pricing conditions on carrots and onions in the Dominion Farm operation. Additionally, the Apple Valley and Meschino Banana business units also saw favourable trending in their Gross Margin rates.

The unfavourable Florida weather conditions caused significant availability issues, and put margin pressure on higher margin commodities emanating from that State. As a result, the Ontario Food Terminal saw an overall Gross Margin decline of slightly greater than 1.0 points due to the convergence of bad weather and a poor selling market for grapes.

Expenses

Total operating expenses of $3.221 million for the quarter represent 14.2% of revenue, marginally above the 14.1% level from last year. The company was successful in reducing its Selling, General & Administrative costs from 4.8% of revenue in the 1st quarter 2000, to 4.6% this year.

Warehouse & Delivery costs were $2.128 million for the quarter, or 9.3% of revenue. This compares with a 9.2% rate in 2000. The key contributor to this slightly unfavourable year over year trend was the Apple Valley subsidiary, which experienced a 2.0 point increase in these costs. The main drivers were higher freight costs associated with a new co-packing arrangement with a major customer, significantly increased natural gas costs for the plant, and higher dumping fees associated with raw waste disposal.

Other Income (Expense)

Foreign exchange gains for the three months ended March 23, 2001 were $0.111 million and compares favourably to the $0.090 million generated for the same period last year. The company took a Restructuring Charge of $0.200 million in the quarter, related to a Material Event that occurred subsequent to the quarter end. The Notes to the Financial Statements provide more detail with respect to the Material Event and Restructuring Charge.

Net Earnings

Net earnings of $0.289 million ($0.018 per share) is reported for the three months ended March 23, 2001, which represents a small improvement from the $0.282 million ($0.017 per share) reported for the 1st quarter 2000. Excluding the restructuring charge, Net Earnings improved 46% to $0.411 million ($0.025 per share), compared to $0.282 million ($0.017 per share).

Liquidity and Capital Resources

Cash flow from operating activities was $1.550 million for the quarter ended March 23, 2001, resulting from net earnings of $0.289 million, adjusted for non-cash items of $0.217 million. Improvements in the use of cash relating to operating assets and liabilities generated an additional $1.044 million in cash flow.

The generation of working capital cash was primarily the result of a decrease in the accounts receivable and inventory balances, partially offset by lower accounts payable/cheque float balances.

The company paid down its $0.295 million liability on the revolving line of credit during the quarter, due to the strong cash flow generated from operations, and utilized $0.128 million in cash for the company's capital expenditure program.

The company is in a solid cash position, with $1.120 million cash and cash equivalents on hand as at March 23, 2001.

Capital Expenditures

Capital expenditures of $0.128 million during the quarter were planned and in line with the company's annual capital appropriation program. The new capital consisted of replacement equipment for aged assets.

Debt

Dominion Citrus- long-term debt as at March 23, 2001 totalled $2.367 million. As at March 23, 2001, the company's shortterm revolving bank lines of credit of $3.000 million were unused, and remain available to the company.

Outlook

Management feels the Company is poised for further growth and is focused on leveraging the infrastructure of its existing businesses to further diversify and broaden its customer base, geographic coverage, market penetration and product and service offerings. A new integrated financial and management operating system is currently under review. This new system is expected to enhance management's ability to monitor and respond to changing market conditions on a more timely and profitable basis.

DOMINION CITRUS LIMITED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

3 MONTHS ENDED MARCH 23, 2001

(Unaudited)

The consolidated interim financial statements should be read in conjunction with the company's most recent annual consolidated financial statements, as they do not conform in all respects with the requirements of Canadian GAAP as pertaining to audited annual financial statements. The interim statements follow the same accounting policies and procedures as the most recent audited statements; and while reviewed by the Audit Committee of the Board of Directors' for overall compliance, have not been subjected to the same degree of testing and verification as the audited annual financial statements.

The following event occurred subsequent to March 23, 2001 quarter end, and has been recognized in the most recent financial statements.

Material Event

On March 26, 2001, the company announced the appointment of a new VP Finance and CFO, and entered into a three-year employment contract expiring March 26, 2004 with Mr. Gary M. Dephoure. The contract provides for a payment in the event of termination without cause.

Restructuring Charge

Associated with the Material Event, the company has taken a general restructuring charge in the amount of $0.200 million, relating primarily to the separation agreement with a former executive of the company.