August 16, 2002

Lassonde Industries has reported financial results for the first six months of 2002 that demonstrated the steady nature of the Company's operations. Lassonde grew revenue by 7.5% in the first half of 2002 to reach $134.8 million, which reflected a 10.9% increase in sales in Canada. Net earnings totaled $2.5 million or $0.37 per share compared to $3.4 million or $0.50 per share for the first six months of 2001. The decline in earnings could be attributed to a restructuring charge related to operations in China. With a better distribution system now in place, this large and relatively untapped market is expected to return to profitability by early next year. Lassonde has several avenues available for future growth, which include the introduction of new and innovative packaging, the realization of the benefits from the license agreement with Sunkist Growers and the marketing of a new line of OASIS products.

November 8, 2002

On October 31, 2002 Lassonde Industries reported sales of $67.5 million for the third quarter compared to $68.8 million last year, a decline of 2%. Net earnings deteriorated to $0.13 from $0.46 per share last year, inline with the Company's pre-announcement on September 6. As anticipated, the shortfall was entirely attributable to Beijing Seanoble, the Company's Chinese subsidiary. However, these operations represent just 19% of the Company's consolidated assets and only 7.8% of consolidated sales. Although the earnings decline was disappointing, at least Lassonde remained profitable in the quarter. Importantly, weakness in China was partially offset by growth across all regions of North America.

In spite of the tough quarter, Lassonde purchased the assets of two companies for $10.5 million. The Company acquired the BideHang Group, a Chinese distributor, as part of its restructuring efforts in China. The Company also bought certain assets of Golden Town Apple Products Limited, an Ontario apple-processing company, based in Georgian Bay, with approximately $10 million in annual sales. Lassonde then spent some capital on manufacturing and packaging equipment to diversify Golden Town's product offering. We like the fact that management is continually looking at opportunities to improve and grow the business.

Fortunately, the Company's operations generated cash and although Lassonde made two minor acquisitions, the balance sheet remained stable. During the first nine months of the year, Lassonde's cash increased from $14.9 million to $20.4 million and the Company repaid a total of $4.4 million in debt. With long-term debt of $22.2 million and shareholders' equity of $90.4 million, the debt to equity ratio is only 0.25:1. Further, Lassonde announced a quarterly dividend of $0.09 per share, which yields just over 2% at current price levels.

Although China has experienced some operating difficulties, the sheer size of the market offers great potential. Management has stated that they are "examining all options and actions to be taken in light of current circumstances". To that effect, Lassonde International has hired an investment bank to "identify potential solutions for its subsidiary in this developing market". We will wait patiently and report back with any new developments.

May 23, 2003

Since our last update, Lassonde Industries has quietly recorded steady results in North America. Unfortunately, the Company's investment in China has performed poorly despite management's efforts to improve the situation. With the release of the Company's year-end financial results Lassonde announced the decision to write off its entire investment in China. The Company is actively soliciting buyers although no further details have been disclosed at this time.

Shortly after the problems in China surfaced, Lassonde's stock declined to a low of $15 on October 10, 2002. The financial results have since stabilized and the shares have rebounded 25%. Currently trading at approximately 1.5 times 2002 year-end book value of $12.62 and just over 11 times 2002 earnings, the valuation still appears attractive. Although the setback in China was disappointing, management's decisiveness should positively impact the Company's results going forward.

For fiscal 2002, Lassonde reported net sales of $229.1 million, an increase of 10% from net sales of $208.1 million in 2001. North American operations earned $11.1 million while Chinese operations lost $9.3 million. Including the write-down of the Chinese subsidiary of $3.7 million, the Company reported an operating loss of $1.9 million for the year. On a per share basis, net earnings from continuing operations were $1.66 per share, an increase of 14.5% from the $1.45 per share earned in 2001.

Lassonde subsequently released first quarter results that were in line with expectations. Net sales for the quarter were $53.6 million compared to $52.3 million in the comparable quarter last year, an increase of 2.5%. Earnings from operations were essentially flat on a year over year basis at $2.5 million. Similarly, earnings per share from continuing operations were $0.37 in Q1 2003 compared to $0.38 in Q1 2002. As expected, Lassonde's Board of Directors approved a $0.09 quarterly dividend payment, which yields approximately 2% at current price levels.

As China becomes less of a distraction, we expect that management will refocus on the Company's North American operations. Lassonde expects to launch a new Oasis Plus product line and several Fruite Calcium products in the coming year. In keeping with the Company's health-conscious image, Lassonde plans to sponsor such events as the Montreal Marathon. These initiatives should allow the Company to continue to build its brand image and dominate the pure juice, fruit drink and calcium and nutrient-enhanced markets.

January 30, 2004

As we suggested in our previous comment, Lassonde has reported improving financial results now that the Chinese subsidiary is no longer on the books. For the third quarter of fiscal 2003, revenue increased 10.8% to $61.7 million. Year to date, revenue increased 9.5% to reach a total of $180.0 million. Earnings from continuing operations per share increased to $0.47 from $0.44 in the third quarter of last year. If we include the results of the Chinese subsidiary for comparison purposes, earnings increased to $0.51 from $0.13 per share. For the first 9 months of fiscal 2003, earnings from continuing operations per share increased to $1.29 from $1.19 in 2002. Again, if we include the poor results from the Chinese division the earnings improvement is quite apparent as EPS increased to $1.33 from $0.50, on a nine-month basis.

Lassonde's balance sheet is in solid shape with just over $4 million in cash, no short-term bank debt and only $17.9 million in long-term debt. Working capital, or current assets less current liabilities, totaled $40.8 million, which implies a sound 2 to 1 working capital ratio. Debt to equity is a healthy 19.8% and book value now totals $13.46 per share.

Lassonde's stock price appreciated nicely over the course of 2003, moving from $16.35 to $22.00, or an increase of 35%. Further, Lassonde pays a $0.36 dividend, which yields approximately 1.64% at currently price levels and adds to the total return. Due to the lack of analyst coverage and the generally stable nature of the business, Lassonde flies under the radar screen for many investors. However, we believe that this conservative investment will continue to perform well in the coming year.

April 8, 2004

We have just sold another one of our illiquid Value Favourites, Lassonde Industries. This stock has performed well for us ever since management decided to write off its under-performing division in China at the end of fiscal 2002. Without this segment's drag on earnings, Lassonde began to report small but steady improvements in its financial results. Consequently, Lassonde's stock appreciated from a 52 week low of $17 to reach $23 per share, a gain of 35%. This return was augmented by the Company's $0.36 per share dividend, which yields 2.2% at current price levels. However, we believe that at 1.7 times book value, Lassonde no longer represents "deep value". Because we are seeing more attractive opportunities elsewhere, we have decided to realize our gains.