Harris Trust and Savings Bank, as Administrative Agent and Collateral Agent, and a group of the Company's present senior lenders are providing the Company in connection with its emergence a $256.1 million senior secured exit financing facility with varying dates of maturity up to December 31, 2006. GE Capital is providing the Company in connection with its emergence a three year $110 million accounts receivable securitization facility. The Company anticipates closing both financings and finalizing related Plan documents in August, at which time the Plan will become effective, and the Company will emerge from bankruptcy.

James C. Kempner, President and CEO of Imperial commented, "With this important legal milestone passed, we look forward to our emergence from bankruptcy later this month. A number of individuals and entities have made this accomplishment possible, including customers, suppliers, lenders and shareholders. However, I want to reserve the most thanks for Imperial's management and employees whose hard work, dedication and long hours over the past seven months under difficult conditions have made the Company's reorganization possible." Mr. Kempner went on to state, "With its strengthened balance sheet and significantly reduced cost structure, Imperial Sugar Company will emerge from bankruptcy a strong and viable competitor in the rapidly evolving domestic sugar industry."

Imperial Sugar Company is the largest processor and marketer of refined sugar in the United States and a major distributor to the foodservice market. The Company markets its products nationally under the Imperial, Dixie Crystals, Spreckels, Pioneer, Holly, Diamond Crystal and Wholesome Sweeteners brands. Additional information about Imperial Sugar may be found on its web site at www.imperialsugar.com

Statements regarding the Companys anticipated emergence from bankruptcy, the outcome of the reorganization plan, the Companys ability to sustain current operations during the pendency of the reorganization including its ability to maintain normal relationships with customers, the ability of the Company to establish normal terms and conditions with suppliers and vendors, costs of the reorganization process, the adequacy of financing arrangements during the reorganization period, the Company's ability to close the exit financing facility and accounts receivable securitization facility, prospects of the Company following emergence from bankruptcy and other statements which are not historical facts contained in this release are forward-looking statements that involve certain risks, uncertainties and assumptions. These include, but are not limited to, the results of the bankruptcy proceedings, court decisions and actions, the negotiating positions of various constituencies, the results of negotiations, market factors, the effect of weather and economic conditions, farm and trade policy, the ability of the Company to realize planned cost savings, the available supply of sugar, available quantity and quality of sugarbeets and other factors detailed in the Companys Securities and Exchange Commission filings. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated.

Contact:
Mark Q. Huggins
Managing Director and
Chief Financial Officer
(281) 490-9587

Investor Relations:
Morgen-Walke Associates
Gordon McCoun
Media Contact: Steve DiMattia
(212) 850-5600