CALIFORNIA AMMONIA CO. (CALAMCO)

If you are a nitrogen-based fertilizer user, this is your opportunity to reduce your fertilizer costs and ensure a reliable supply of fertilizer through a grower-owned cooperative! We invite you to become a part of the CALAMCO success story by investing in your future with a company that has proven itself to be a winner!

CALAMCO is a California-based cooperative made up of approximately 1500 grower-members from throughout California, as well as fertilizer dealers and our industry partner, the J. R. Simplot Company. Since its inception in 1957, CALAMCO shareholders have been enjoying the benefits their stock has entitled them.

Shareholder Benefits:

• Patronage returns averaging over 20% since 1961.

• Ownership of one of only two ammonia terminals in California guarantees a reliable supply of product.

• Expansive array of nitrogen-based products to choose from; purchased through the authorized dealer of your choice.

• Attractive financing available on stock purchases.

Lowell W. Berry, founder of the Best Fertilizers Co. in 1932, had a vision to form California Ammonia Co. (CALAMCO), a joint venture involving The Best Fertilizers Co. and a group of California farmers. CALAMCO was incorporated in 1957 for the principal purpose of manufacturing and selling anhydrous ammonia to its own stockholder-patrons in accordance with their preferred patronage rights. 1958 marked the construction of the ammonia plant at Lathrop.

CALAMCO's life blood is a reliable supply of anhydrous ammonia. In order to ensure shareholders' needs be fulfilled on a consistent and economical basis, CALAMCO entered into a long term supply contract with the Ocelot Ammonia Company, located in Kitimat, British Columbia, Canada, with it's first ammonia shipment arriving in 1987. This Contract helped diminish vulnerability from exposure to erratic and unpredictable world markets.

In 1994 CALAMCO and the J.R. Simplot Company, were able to successfully renegotiate the operating contract between the two organizations. The contract defines the terms in which Simplot purchases ammonia for its needs in the organization's manufacturing plants in California. In March of 2001, CALAMCO and the J.R. Simplot Company entered into another, long-term contract to terminal UAN32 solution at our facility located at the Port of Stockton. CALAMCO built and operates a 40, 000-ton capacity storage facility. Under the new contract, the J.R. Simplot Company procures and markets the UN32 solution which carries shareholder coverage.