CALGARY, Alberta -- Agrium Inc. (TSX and NYSE: AGU) announced today that it has entered into an agreement to acquire certain fixed assets and inventory of Pursell Technologies Inc. and certain of its affiliates (PTI) for a purchase price of $74.5-million (U.S.).  The transaction is subject to regulatory approval.  The PTI acquisition is expected to increase Agrium’s sales and earnings in the growing and environmentally friendly specialty fertilizer business.

Agrium has pioneered the development of cost-effective controlled release fertilizer products for use in broad acre crop applications, and this transaction is expected to further support that effort.  PTI is well known within the industry for coating technologies used in POLYON® polymer-coated fertilizers and TriKote® polymer/sulfur coated fertilizers, used in high value turf and ornamental applications.  The combination of complementary Pursell and Agrium technologies and products is expected to reduce costs, expand output and enhance the quality and availability of Agrium’s environmentally friendly polymer-coated controlled release fertilizer, ESN®, for broad acre crops.  Agrium intends to combine the sales and earnings from the PTI acquisition with those of its other specialty fertilizer products into a new business segment.  

“With the addition of Pursell, we enhance our position as a global leader in environmentally friendly controlled release fertilizers and add another stable earnings stream to our portfolio of businesses and products,” said Mike Wilson, Agrium President and CEO.  “The strategic combination of Agrium and PTI should further advance our polymer-coating technological capabilities.  We are also excited about the potential to expand our offering of complementary specialty products to our customers and to add the experienced marketing and technology team of Pursell.”

In addition, Agrium has purchased patented technology for emerging non-fertilizer controlled release products for the consideration of $12.5-million plus contingent payments based on a percentage of future sales.
 
About Pursell Technologies Inc.:
Pursell Technologies Inc. is a premier developer and manufacturer of controlled release fertilizers and pesticides. Based in Sylacauga, AL, the company has been in the fertilizer business since 1904. Pursell Technologies’ POLYON® polymer-coated fertilizers, PRECISE® controlled release crop protection products and TRIKOTE® polymer-coated, sulfur coated fertilizers are marketed worldwide to turf and horticulture professionals.  Full-year 2006 EBITDA from the acquired PTI assets is expected to be approximately $10-million.

About Agrium
Agrium Inc. is a leading global producer and marketer of agricultural nutrients and industrial products and a major retail supplier of agricultural products and services in both North and South America.  Agrium produces and markets three primary groups of nutrients: nitrogen, phosphate and potash as well as controlled release fertilizers and micronutrients. Agrium’s strategy is to grow through incremental expansion of its existing operations and acquisitions as well as the development, commercialization and marketing of new products and international opportunities.

Certain statements in this press release constitute forward-looking statements.  Such forward-looking statements involve known and unknown risks and uncertainties, including those referred to in the management discussion and analysis section of the Corporation’s most recent annual report to shareholders, which may cause the actual results, performance or achievements of the Corporation to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.  A number of factors could cause actual results to differ materially from those in the forward-looking statements, including, but not limited to, receiving regulatory approvals to proceed with the transaction, the successful integration of PTI’s business, weather conditions, the future supply, demand, price level and volatility of natural gas, future prices of nitrogen, phosphate and potash, the differential pricing of natural gas in various markets, the exchange rates for U.S. and Canadian currencies, future fertilizer inventory levels, future nitrogen, potassium and phosphate consumption in North America, future crop prices, future levels of nitrogen imports into North America and future additional fertilizer capacity and operating rates, assumptions pertaining to the continued market growth, asset valuation and financing arrangements. Agrium disclaims any intention or obligation to update or revise any forward-looking information as a result of new information or future events.

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