July 30, 2002

Toronto, Ontario

Second  Quarter 2002 Report to Shareholders
Three months ended June 30, 2002

Second Quarter 2002 Report to Shareholders
Three months ended st1:date Month="6" Day="30" Year="2002">June 30, 2002

*  2nd quarter operating income up 5.2%
*  Dividend of $0.02 declared for payment on September 27, 2002
*  Vice President of Business Development appointed

TORONTO, July 30, 2002: Dominion Citrus Limited (TSE:DMN) announces a continuation of strong operating results for the second quarter and first six months of fiscal 2002.

Performance Highlights:

    -   2nd quarter gross margin of 18.3% versus 15.7% in 2001 

    -   2nd quarter operating income of $1.214 million versus $1.154 million last
        year, up 5.2% 

    -   Six months operating income of $1.952 million is up 11.3% year over year 

    -   Process improvements and cost control efforts at The Apple Valley Juice 
        Corporation have improved performance, with the division earning a
        profit during  the quarter

"We are satisfied with the trend in our operating performance during the 2nd quarter and for the first six months of the year", said Jacques L. Lavergne, Dominion Citrus Limited President and CEO. "Our operating income grew by 5.2% during the quarter, and is running at over an 11% improvement year to date. The strategic initiatives to expand the international import programs and implement various cost efficiency measures, were instrumental in helping the Company improve its operating margin results year over year."

Lavergne commented, " While our quarterly revenue is down year over year, a significant component of the change is due to a short-term direct supply contract that occurred in 2001. Unfortunately, the one time spike in revenue generated by supplying a number of discount stores of a major grocery retailer in the 2nd quarter last year was not repeatable in 2002. However, I am pleased with the year over year improvements we achieved in our gross margin profitability, which is a key metric for improving our earnings per share results over time."

"The Company's bottom line performance was impacted by weaker than expected results from our investing activities, when the funds from our debenture offering were placed in the equity markets in late April. Unfortunately, the extreme volatility the financial markets experienced over the last 60 days had a bearing on our hedged portfolio performance. However, we are comfortable with the long term portfolio holdings, and believe that the short term portfolio performance is not indicative of future results or a permanent impairment," added Lavergne.

At today's regular Board meeting, the Director's declared a dividend of $0.02 per share, payable September 27, 2002, to shareholder's of record at the close of business on September 13, 2002. Additionally, the Board approved the newly created position of Vice President of Business Development and appointed Peter M. Kozicz to the position, effective September 1, 2002.

 "I am pleased to announce that Peter will be joining the Company in this newly created position", said Jacques Lavergne. "Peter brings a tremendous amount of diverse financial, operating and real estate experience to the position, and his mandate will be to actively focus on strategic business opportunities and acquisitions for the Company both inside and outside Canada. As we announced at our Annual Meeting, the Company is actively looking for accretive businesses, and the creation of this position will focus the Company on developing potential opportunities while allowing other senior executives to remain focused on operational improvements and internal growth." 

Dominion Citrus Limited 2nd Quarter Results

3 months ended June 30, 2002 & June 29, 2001

o:p>		2002	2001
Revenue		$26,006,000	$32,740,000
Gross Margin %		18.3%	15.7%
Operating Income		$1,214,000	$1,154,000
Net Income		$603,000	$754,000
EPS (basic)		$0.04	$0.05
EPS (fully diluted)		$0.03	$0.05
Total Assets		$25,376,000	$21,102,000
Dividends Paid		$326,000	nil

Dominion Citrus Limited Six Month Results

Gary M. Dephoure
V.P. Finance and CFO
416 259-6328 ext 249