PotashCorp Raises Second Quarter Guidance Listed: TSX, NYSE Symbol: POT SASKATOON, SK, June 17 /PRNewswire-FirstCall/ -- Potash Corporation of Saskatchewan Inc. (PotashCorp) announced today that higher than anticipated potash prices and volumes combined with better than expected nitrogen prices will result in the company exceeding its initial guidance for the second quarter of $0.70 to $0.90 per diluted share. The company now believes that second quarter earnings should exceed $1.00 per diluted share, exclusive of the Canadian/US dollar exchange rate. Strong demand in both North America and offshore has tightened the supply/demand situation in potash creating a significant improvement in potash fundamentals. Offshore potash price increases have now surpassed the increase in ocean freight rates which masked the improvement in this nutrient in previous quarters. Domestic prices are also up. In addition, the nitrogen market is very tight due to a strong spring season and capacity shutdowns in the US. As a result, nitrogen prices have increased significantly since the beginning of the quarter. "The strength of the potash market and our prime position within it are a real benefit to our shareholders," said Bill Doyle, PotashCorp President and CEO. "With the significant growth in the potash market, PotashCorp is finally going to utilize some of our excess capacity as our competitors are operating close to capacity. This provides the company with a considerable competitive advantage moving forward." The company's annual guidance will be discussed in conjunction with the second-quarter results on Thursday, July 29, 2004. 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, fourth largest in phosphate and third 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 2003 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 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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