SUGAR LAND, TX, August 29, 2001 -- Imperial Sugar Company today announced that its Second Amended and Restated Joint Plan of Reorganization (the "Plan"), confirmed by the U.S. Bankruptcy Court on August 7, 2001, has become effective.

In accordance with the Plan, the Company's former common stock (OTC BB:IPRL) is canceled.  Former shareholders in the Company will receive approximately 0.0062 shares of common stock in the reorganized company for each share previously held.  Issuance of shares to former shareholders is expected to occur in September.  Additionally, former shareholders will receive warrants to acquire common stock in the reorganized company, which will expire in seven years, on the basis of 0.0343 warrants for each share of common stock previously held.  Issuance of the warrants and the setting of their exercise price are expected to take place within six months of the effective date when a determination is made of the maximum number of shares of new common stock to be issued to those creditors who will receive new common stock in settlement of their claims.  The Company plans to have the new common stock and warrants listed on a national securities exchange as soon as practicable.

In conjunction with the emergence, the Company completed its previously announced $256.1 million senior secured credit facility led by Harris Trust and Savings Bank, as Administrative and Collateral Agent and its $110 million accounts receivable securitization facility with GE Capital.

With the reorganization completed, all of us at Imperial Sugar are looking forward to turning our full attention back to enhancing the profitability of our core business segments - the processing, selling and marketing of refined sugar, where we are a leader in industrial, private label and consumer branded products, and in the growing foodservice industry, in which we are the share leaders in a number of important product categories., stated James C. Kempner, President and CEO of Imperial.  Mr. Kempner went on to say, I want to once again thank our employees, customers and suppliers, including the growers who supply sugarbeets to our Holly, Spreckels and Michigan factories, and the cane sugar millers who supply raw sugar to our Imperial, Colonial and Savannah refineries.  Without their support this reorganization would not have been possible.