October 30, 2002

Toronto, Ontario

Third Quarter 2002 Report to Shareholders

Three months ended st1:date Month="9" Day="30" Year="2002">September 30, 2002

• 3rd quarter net earnings up 3% to $500,000 or $0.03 EPS (basic & fully diluted)                     
• Announcement of planned acquisition of Catanti International Foods Inc.
• 4 year collective agreement at Country Fresh Packaging was renewed                                
• Company paid a regular semi-annual dividend of $0.02/share in September            
• Listed on the Toronto Stock Exchange in early 2001, Dominion Citrus has distributed approximately 28% of its earnings to date through dividends

TORONTO, October 30, 2002: Dominion Citrus Limited (TSE:DMN) announces a continuation of quarterly net earnings growth, with the Company achieving a 3% improvement in 3rd quarter net earnings after tax. The Company earned $0.03 EPS (basic) for the quarter, and $0.10 EPS (basic) for the first nine months of fiscal 2002, which compares favourably to the $0.03 (basic) and $0.09 (basic) earned in the quarter and first nine months of fiscal 2001 respectively.

The Company was also active strategically, with a new 4-year collective agreement reached without labour disruption, during the quarter at Country Fresh Packaging. Additionally, subsequent to September 30, 2002, the Company announced that is has tentatively agreed, subject to due diligence and other conditions, to acquire a majority stake in Catanti International Foods Inc. The transaction, assuming successful completion, is expected to close by mid November 2002.

"We are reasonably pleased with our year over year quarterly revenue and earnings growth", said Jacques L. Lavergne, Dominion Citrus Limited's President and CEO. "The third quarter is our toughest period during the year, owing to the availability of locally grown produce / home gardens, while summer vacations tend to dampen overall produce consumption." Lavergne added, "The 3rd quarter last year was especially strong, as the Company won a short term produce supply contract for a sizeable number of grocery stores due to distribution challenges a retailer was experiencing with its new warehouse facility. While we would have liked this incremental revenue volume to repeat in 2002, we are pleased that the Company was able to surpass last year's revenue results without the repeat benefit of this short-term contract. Also, the extended Ontario and Quebec growing seasons lasted well into October, due to exceptionally warm temperatures. While this weather is excellent for extending summer activities, it delayed the traditional import revenue ramp-up we usually experience just after Labour Day."  

Lavergne commented, "The five divisions that comprise Dominion Citrus Limited are all unique, yet integrated. The strategic focus on developing strong offshore import programs from around the world helps mitigate wholesale trading weaknesses that occur from time to time. While the wholesale division had a tougher quarter this year compared to last, the other divisions improved their operating performance versus fiscal 2001."  

"The acquisition of Catanti International Foods Inc., while not a large acquisition in dollar terms, introduces additional marketing and branding expertise into the Company, and should allow Dominion to sell additional volume of product that is a premium label in its category."

Lavergne added, "The wholesale food industry in Canada remains quite fragmented and there are opportunities for cost savings by bringing together various businesses with good strategic plans, excellent brands/reputations and solid balance sheets. We believe there are other opportunities to fuel Dominion's growth strategy. Catanti is the first step on that growth path."

Gary Dephoure
Vice President, Finance and Corporate Secretary
Dominion Citrus Limited
(416) 259-6328 ext 249