Alliance Grain Traders Announces Letter Of Intent for Northern Yorke
Processors in South Australia and Continued Expansions in Turkey: New Pasta
Line and Rice Mill

SYMBOL:TSX: AGT

REGINA, Sept. 7 /CNW/ - Alliance Grain Traders Inc. (TSX: AGT) ("AGTI") is pleased to announce that it has entered into a letter of intent ("LOI") to acquire all of the assets of Northern Yorke Processors ("NYP"), located at Kadina, South Australia. The assets to be acquired include real property, vertical and horizontal storage for pulses and grains, processing plant assets and related handling equipment. Kadina is located approximately 160 km from Adelaide, Australia. This LOI is in addition to the recent announcement of the LOI for the acquisition of Balco Grain Services that was announced August 30, 2010. The new company will be owned and operated by AGTI's wholly owned subsidiary, Australia Milling Group Pty Ltd.

"NYP is a key part of our platform expansion in South Australia with its location on the Yorke Peninsula. Along with the Balco site at Bowmans, we now have origination and processing hubs in South Australia's main production areas and key logistical container advantages to execute our business plan. NYP is ready for operation and will give us processing capacity this year to capitalize on what appears to be a promising 2010 crop while we build out the Bowmans site with new storage and processing assets," said Murad Al-Katib, President and CEO of AGTI.

The NYP transaction will be funded as a part of the CDN $10 million program previously announced in conjunction with the Balco Grain acquisition. Completion of the NYP transaction is subject to a number of conditions, including certain due diligence to be conducted by AGTI, negotiation of definitive agreements, board approval of AGTI and other customary closing conditions. The transaction is currently scheduled to close on or about September 30, 2010.

AGTI is also pleased to announce that it has begun construction on two new projects in Turkey with the addition of a new short-cut pasta line at its Arbella processing facility in Mersin, Turkey and the construction of a state-of-the-art rice processing mill near Edirne, Turkey located 220 km from Istanbul in the heart of the Turkish rice production area. The pasta processing line will add an additional 36,000 mt of pasta capacity while the rice mill is planned at 65,000 mt annually. Both the pasta line expansion and the new rice mill project are slated for completion in the first quarter of 2011, with a total investment of CDN $15 million.

"Our Arbella pasta business is on target as we are nearing capacity on the long-cut pasta line we installed in 2009. This new short-cut pasta line will allow us to meet the growing export demand for Arbella in the penne, rigatoni and Arbella Family children's pasta segments. We are now exporting to over 50 countries and see continued repeat business driving this growth. In the rice segment, we felt the need to have our own facility to truly meet the quality and reliability expectations of our customers. We are millers of commodities into staple foods. Medium grain rice milling is complementary to our pulses milling and durum wheat milling businesses. It shares common technology, know-how and markets. The new mill will be an excellent addition to our growing list of international factories," added Huseyin Arslan, Executive Chairman of the Board of Directors of AGTI.

Alliance Grain Traders Inc. Profile

Alliance Grain Traders Inc. (AGTI) is a pulse processor and exporter engaged in the business of value-added processing (cleaning, splitting, sorting and bagging) of pulses and specialty crops, for export and domestic markets. Through its processing facilities located in some of the best pulse growing regions in Canada, the U.S., Turkey and Australia, AGTI handles a full range of pulses and specialty crops including lentils, peas, chickpeas, beans and canary seed. Through its subsidiaries in Turkey, the Arbel Group, AGTI also produces Arbella Pasta, rice, and milled wheat products, such as bulgur and semolina.

Cautionary Statements

Certain statements in this press release are forward-looking statements. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable by AGTI at the time of preparation, may prove to be incorrect. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of AGTI (including its operating subsidiaries) to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, the actual results of harvests, fluctuations in the price of lentils and other crops, failure of plant, equipment or processes to operate as anticipated, accidents or labour disputes, risks relating to the integration of acquisitions or to international operations as well as those factors referred to in the section entitled "Risk Factors" in the Annual Information Form of AGTI dated March 30, 2010 which is available on SEDAR at www.sedar.com, and which should be reviewed in conjunction with this document. Although AGTI has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. AGTI expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except in accordance with applicable securities laws.

For further information: Omer Al-Katib, Investor Relations, [phone] [email protected]