Savannah Foods announces first quarterearnings.

SAVANNAH, Ga.--(BUSINESS WIRE)--(Jan. 21, 1997)-- Savannah Foods & Industries, Inc. announced today that net income for its first fiscal quarter ended December 29, 1996 was $9,148,000 or $0.35 per share.

This is improved from the first quarter earnings of its last fiscal year of $3,543,000,

Savannah Foods is one of the largest sugar processors in the United States and trades on the New York Stock Exchange under the symbol SFI. The company's President William W. Sprague III said the improvement in first quarter fiscal 1997 earnings resulted primarily from an increase in volumes and margins at the company's cane sugar refineries, from increased sales of higher value products, and from continued cost reduction efforts and the impact of past cost reductions.

The company expects the earnings level for the full 1997 fiscal year to continue at first quarter levels and to significantly exceed net income for fiscal 1996 which ended September 29, 1996. The company's net income for the full 1996 fiscal year was $5,972,000 or $0.23 per share. Mr. Sprague noted that earnings for the company's March quarter are typically down from the December quarter levels and then increase in the June and September quarters. He said he expects this cycle to repeat in fiscal 1997.

The company also expects to generate cash flow in fiscal 1997 sufficient to reduce its long-term debt to less than $20 million. From the end of fiscal 1994 to the end of fiscal 1996 the company reduced its long-term debt from $140 million to $60 million.

The statements made by the company that are forward looking involve risks and uncertainties that include, but are not limited to, market factors, the effects of weather on domestic U.S. sugarbeet and cane crops, U.S. Government farm and trade policy and other factors detailed in the company's filings with the Securities and Exchange Commission.

Summary first quarter unaudited financial information follows on the next page.

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                  Savannah Foods & Industries, Inc.
                               (SFI)


     Interim Report For The First Quarter Ended December 29, 1996
                            (Unaudited)
    (Amounts in thousands except for shares and per share amounts)


        Consolidated Condensed Income Statement Information


                                        Quarter Ended

                                December 29,        December 31,
                                   1996                 1995
                                ------------        ------------

Net sales                        $303,121             $304,409
                                 ========             ========

Income from operations           $ 16,408             $  8,550

Other income & expense                 72                  259

Interest expense                   (1,960)              (3,359)

Provision for income taxes         (5,372)              (1,907)
                                 ---------            ---------

Net income                       $  9,148             $  3,543
                                 ========             ========

Earnings per share                  $0.35                $0.14
                                 ========             ========

Dividends per share                $0.025               $0.025
                                 ========             ========

Weighted average shares
 outstanding                   26,238,196           26,238,196
                               ==========           ==========




        Consolidated Condensed Balance Sheet Information


                                December 29,        September 29,
                                   1996                 1996
                                ------------        -------------

Working capital                  $106,891              $94,606

Property, plant and
 equipment                        181,864              186,546

Other assets                       30,739               31,163
                                 --------              -------

                                 $319,494             $312,315
                                 ========             ========

Long-term debt                    $59,111              $59,754

Deferred employee
 benefits                          78,180               78,834

Stockholders' equity              182,203              173,727
                                 --------             --------

                                 $319,494             $312,315
                                 ========             ========

Note 1: This condensed financial statement information is presented as supplemental information to the Company's Quarterly Report on Form 10-Q which will be filed with the Securities and Exchange Commission. The statements made by the Company that are forward looking involve risks and uncertainties that include, but are not limited to, market factors, the effects of weather on domestic U.S. sugarbeet and cane crops, U.S. Government farm and trade policy and other factors detailed in the Company's filings with the Securities and Exchange Commission.

Note 2: Certain prior year amounts have been reclassified to conform to current year presentation.

CONTACT: Savannah Foods & Industries, Inc.

F. Sprague Exley, 912/234-1261

FAX: 912/651-4905

or

Gregory H. Smith, 912/234-1261

FAX: 912/651-4905