Second Quarter 2004 Report to Shareholders

Six months ended June 26, 2004 and June 27, 2003

DOMINION CITRUS LIMITED ANNOUNCES SECOND QUARTER RESULTS

First Half Highlights

• Revenue of $64,451,000, up $3,553,000, or 5.8% over last year.
  
• Gross margins of 17.8%, up from 17.2% last year.
  
• Operating income of $2,317,000, up 4.6% from last year.
  
• Net earnings of $1,432,000, up 1% over last year.
  
• Fully diluted earnings per share of $0.064, down $0.009 per share from
  last year, reflecting the impact of average shares outstanding being
  15.6% above last year.
  
• Cash provided by operations of $1,805,000 for the first six months
  versus cash used of $865,000 last year.

Second Quarter Highlights

• Revenue of $34,414,000 up $1,747,000, or 5.3%, over last year.
  
• Net earnings of $605,000, down from net earnings of $741,000 reported
  last year.
  
• Fully diluted earnings per share of $0.026, down $0.01 per share from
  last year, reflecting both the lower net earnings and the impact of
  average shares outstanding being 15.1% above last year.
  
• The Company declared a semi-annual dividend of $0.073125 per
  preference share, which was paid in July.
  
• Generated operating cash flow before changes in working capital of
  $885,000.
  
• Bank indebtedness declined $1,519,000 year over year despite funding
  the Bo-Fruits acquisition.
  
• Subsequent to quarter end, the Company announced the construction of
  a 58,000 sq. ft. state-of-the-art processing and warehousing facility in
  Toronto.

TORONTO, August 4, 2004: Dominion Citrus Limited (TSE:DMN) announced revenues for the six months ended June 26, 2004 of $64,451,000, up 5.8% over last year while net earnings of $1,432,000 ($0.064 per share fully diluted) increased 1% from net earnings of $1,417,000 ($0.073 per share fully diluted).

Revenues were $34,414,000 for the second quarter, an increase of 5.3% over the same period last year and net earnings of $605,000 ($0.026 per share fully diluted, reflect the impact of average shares outstanding being 15.1% above last year). Net earnings decreased $136,000 from net earnings of $741,000 ($0.036 per share fully diluted) reported last year.

“These results reflect intense competition driven by price wars in the Ontario retail grocery market and lower commodity pricing accompanied by shortages of some commodities due to adverse weather conditions,” said
Jacques Lavergne, President and CEO.

“We are pleased that our sales growth trend continues to improve on the strength of our acquisition strategy despite price deflation and commodity shortages,” said Lavergne. “We remain focused on executing our expansion strategy and implementing productivity initiatives that, together position us well for future growth”.

Lavergne commented “Our recent announcement to build a 58,000 square foot refrigerated warehouse and processing facility will provide the Company with consolidation synergies, greater operational flexibility and lower costs. The new facility will position the business to expand its core operation and enable the Company to offer new third party services.”

At today’s Board meeting, the Directors declared a common share dividend of $0.025 per common share, payable September 27, 2004, to shareholders of record at the close of business on September 10, 2004.

Forward-Looking Statements

The Company and its representatives periodically make written and oral statements, including those contained in the Annual Report, which may pertain to the Company or the environment in which Dominion Citrus operates. By their nature, forwardlooking statements are subject to risks and uncertainties, which could result in actual performance or conditions being materially different from anticipated results.

Readers should not place undue reliance on these forward-looking statements when making decisions, and should consider the date onto which the statements were made. Except as required by applicable security law, management disclaims any intention or obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise.

Fiscal 2004 Outlook

Management is focused on managing its core business while implementing its growth strategy as it seeks accretive acquisition opportunities. The produce wholesaling and processing segment continues to be extremely competitive with revenue growth in 2004 being impacted negatively by commodity price deflation and some supply shortages while favourably impacted by the annualized revenues generated by the Catanti, Delta and Bo-Fruits acquisitions. Competitive pressures are continuing as a result of the ongoing consolidation in the retail grocery sector, intensified by price wars as retail supermarket chains battle for market share. The Company continues to search for consolidation and growth opportunities by pursuing accretive acquisitions in both the produce and other food segments of its business.

About Dominion

Dominion is a diversified food company supplying fresh produce, premium juices, maple syrup and Mediterranean food products to a wide variety of customers in retail, foodservice and food distribution businesses. The Company provides procurement, processing, repacking, sorting, grading, warehousing and distribution services to over 400 customers, with its major domestic markets being Ontario and Quebec. The Company also supplies products to customers in the United States and Europe. The website can be accessed at www.dominioncitrus.com.

 
Investors:
E.A. Atkinson
V.P. Finance, CFO &
Corporate Secretary
416 521-6288
email: t.atkinson@dominioncitrus.com

Media:
J.L. Lavergne
President & CEO
416-521-6289
email: j.lavergne@dominioncitrus.com