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                         [IMPERIAL SUGAR COMPANY LOGO]

                         IMPERIAL SUGAR COMPANY SELLS
                          MICHIGAN SUGAR COMPANY TO
                       MICHIGAN SUGAR BEET GROWERS, INC.

        SUGAR LAND, TX, February 13, 2002--Imperial Sugar Company (OTC:IPSU)
("Imperial") today announced that it sold its Michigan Sugar Company
("Michigan") subsidiary, and its Great Lakes Sugar Company ("Great Lakes")
subsidiary to a grower cooperative, Michigan Sugar Beet Growers, Inc.
("Growers") for a gross purchase price of $45.0 million, plus the assumption of
$18.5 million of debt. The transaction closed immediately after signing of the
agreement.

        The purchase price for the transaction was comprised of $29.0 million in
cash, with the remaining $16.0 million financed by Imperial as two separate term
loans to the Growers, one in the principal amount of $15.0 million and the
second in the principal amount of $1.0 million. The Growers have also assumed
the obligations under certain industrial development bonds related to Michigan
Sugar having a face value of approximately $18.5 million, although Imperial will
not be released from its contingent obligations with respect to such industrial
development bonds.

        Upon completion of the transaction, Imperial expects to apply
approximately $19.3 million of the net

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IMPERIAL SUGAR COMPANY                                                    PAGE 2

after-tax proceeds to permanently reduce debt. Michigan is a leading north
central processor of sugar beets producing refined sugar products. Michigan
represented approximately $162 million in net sales in the fiscal year ended
September 30, 2001.

        Imperial will continue to market all refined sugar products for Michigan
under an exclusive ten-year marketing agreement. The marketing fee will be 2.5%
of the net selling price of the refined sugar marketed by Imperial for Michigan
with an incentive factor of 0.5% of the net selling price if certain competitive
targets are met.

        Robert J. McLaughlin, Chief Executive Officer of Imperial Sugar Company
stated, "We are pleased to have concluded this transaction, which represents a
significant component to our plan to reduce debt. We look forward to acting as a
value-added provider of marking services to Michigan, and we will make every
effort to provide a seamless transition of the Michigan business, ensuring that
our customers are well serviced with the quality products they have come to
expect."

        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(TM), Dixie
Crystals(TM), Spreckels(TM), Pioneer(TM), Holly(TM), Diamond Crystal(TM) and
Wholesome Sweeteners(TM) brands. Additional information about Imperial Sugar may
be found on its web site at www.imperialsugar.com.
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Statements regarding payback of debt, operating results, synergies, future
operating efficiencies, cost saving and other statements which are not
historical facts that may be contained in this release are forward-looking
statements that involve certain risks, uncertainties and assumptions. These
include, but are not limited to, 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, and
other factors detailed in the Company's 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.

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