Listed: TSX, NYSE Symbol: POT SASKATOON, SK, Feb. 24 /PRNewswire-FirstCall/ -- Potash Corporation of Saskatchewan Inc. (PotashCorp) today purchased an additional 10.01 percent of Sinochem Hong Kong Holdings Limited (Sinofert) for US $126 million, completing the exercise of its option on these shares. This raised PotashCorp's ownership interest in Sinofert to 20 percent and includes the right to nominate a second member to Sinofert's Board of Directors. PotashCorp initially purchased 9.99 percent of Sinofert for $97 million under a Strategic Investment Agreement signed with a subsidiary of Sinochem Corporation on June 7, 2005. Sinochem, a member of the Fortune Global 500 for the past 15 years, had sales of US $20.4 billion in 2004. The initial agreement gave PotashCorp the right to expand its ownership position in Sinofert no earlier than January 27, 2006. An announcement of the decision to exercise this option was made on January 31, 2006. Sinofert is a leading fertilizer enterprise in the People's Republic of China (PRC). On December 19, 2005 it released its 9-month earnings of US $76 million, 51 percent higher than the comparable period in 2004. One of the largest importers of fertilizer products in the PRC in terms of import volume, it is the largest distributor of these products and is also a major producer of phosphate-based fertilizer products. At the end of November 2005, it had 14 branch offices and 1,036 sales centers as part of an extensive distribution network that provided products to 76 percent of total sown lands in China. "This is a significant investment that will have an immediate positive impact on our company and, more importantly, will provide significant growth potential for us over the long term," said Bill Doyle, PotashCorp President and CEO. "We have planted a seed in one of the most fertile agricultural markets in the world. It is the beginning of a new generation of opportunity - through the sale of our products to this key customer and the distribution of all Sinofert products throughout China. Our long-term shareholders will benefit from China's expanding economy and its desire to increase food production." Potash Corporation of Saskatchewan Inc. is the world's largest fertilizer enterprise producing the three primary plant nutrients and a leading supplier to three distinct market categories: agriculture, with the largest capacity in the world in potash, third largest in phosphate and fourth largest in nitrogen; animal nutrition, with the world's largest capacity in phosphate feed ingredients; and industrial chemicals, as the largest global producer of industrial nitrogen products and one of only three North American suppliers of industrial phosphates. This release contains forward-looking statements, which involve risks and uncertainties, including those referred to in the company's annual report to shareholders for 2004 and in filings with the U.S. Securities and Exchange Commission and Canadian provincial securities commissions. A number of factors could cause actual results to differ materially from those in the forward- looking statements, including, but not limited to: fluctuation in supply and demand in fertilizer, sulfur, transportation and petrochemical markets; changes in competitive pressures, including pricing pressures; risks associated with natural gas and other hedging activities; changes in capital markets; changes in currency and exchange rates; unexpected geological or environmental conditions; and government policy changes. DATASOURCE: Potash Corporation of Saskatchewan Inc. CONTACT: Betty-Ann Heggie, Senior Vice President, Corporate Relations, Phone: (306) 933-8521, Fax: (306) 933-8844, E-mail: , Web Site: http://www.potashcorp.com/

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