PotashCorp Announces Expansion of Purified Phosphoric Acid Plant Listed: TSX, NYSE Symbol: POT SASKATOON, SK, Sept. 23 /PRNewswire-FirstCall/ -- Potash Corporation of Saskatchewan Inc. (PotashCorp) today announced an 82,000 tonne expansion of its purified phosphoric acid plant at Aurora, North Carolina. The $73.0 million expansion will increase the company's total annual purified acid capacity to 327,000 tonnes and is expected to be fully operational by the second quarter of 2006. This expansion will not increase the company's overall capacity in phosphoric acid (P(2)O(5)), which is the key ingredient in purified acid. Rather, PotashCorp will be redirecting its existing P(2)O(5) capacity to higher-margin products sold to industrial customers in North America. Historically, these products have provided a significantly higher gross margin than phosphate fertilizers. This expansion will accommodate growing demand in both North and South America. With this expansion, PotashCorp will continue to capitalize on its competitive advantages in purified phosphoric acid production. Foremost of these is the company's access to high-quality rock in North Carolina with fewer impurities, resulting in superior product quality. The close proximity of this ore body to the Aurora processing facility and the vertical integration of the Aurora phosphate complex also bring inherent cost savings to the process. When the expansion is complete, the plant -- already the world's largest and lowest-cost producer -- will be even larger and more efficient. "This investment furthers our decommoditization strategy for our phosphate business into higher-margin products," stated Bill Doyle, President and CEO. "We have a defined and distinct advantage in this area and with our advanced production technology and 15 years of operating experience, we believe we can bring further value to our customers." 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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