ANNOUNCEMENT
Fertilizer Update Regarding Hurricane Katrina

FROM : Howard Johnson's Enterprises Inc.–
September 1, 2005

The damage and resulting confusion from hurricane Katrina is making it very difficult to get solid facts about the impact on unloading facilities, barges, vessels and production facilities. Here is what we know so far in communicating with traders and producers alike.

CF Industries who is the largest nitrogen producer in the NO, LA area did not sustain serious damage to their plant. They do have power and are bringing the plant back on line.

That is the good news. Here is the bad news!

1. Many full barges of urea and DAP have either sunk or leaked to the point that the product is unusable.
2. Many of the unloading facilities used for discharging vessels are severely damaged and may not be able to accept incoming vessels for weeks. Vessels in route to the U.S. may be diverted.
3. Eighty percent of the natural gas produced in the gulf region has been disrupted. The price of natural gas has soared to $12 mmbtu. Fertilizer producers have increased prices dramatically and urea has increased as much as $50.00 per ton.
4. Barging capacity appears to have been greatly diminished for urea and DAP.
5. The huge increase in ammonia prices will put strong upward prices on DAP.

Until we can get a clearer picture of what to expect over the next 60 days it is impossible to determine where prices will settle. Supplies of both nitrogen and phosphates will become very tight at the river terminals. Some terminals may even run dry.

There is also the possibility of matters worsening depending on the impact of hurricane Rita now in the Gulf of Mexico making tracks toward the Texas coast. We will definitely be watching this storm in the days ahead and hoping for the best.

Sincerely,

Chris Skibba
Southern Regional Manager
Howard Johnson's Enterprises, Inc.
O.704-814-7955
F. 704-814-0390
C. 414-526-6833