PotashCorp Announces Open Market Repurchase Program and Declares Quarterly Dividend

    Listed: TSX, NYSE
    Symbol: POT

    SASKATOON, SK, Jan. 23 /CNW/ - Potash Corporation of Saskatchewan Inc.
(PotashCorp) today announced that its Board of Directors has approved its
intention to commence, subject to regulatory approval, an open-market
repurchase program of approximately 5 percent of its outstanding common shares
over a one-year period through a normal course issuer bid. The share buyback
will involve the purchase of common shares at the prevailing market price from
time to time.
    "We have a long history of using our strong cash flow to create value for
our shareholders," said PotashCorp President and Chief Executive Officer Bill
Doyle. "We believe there is no better assets in our industry than the ones
held by our own company. We have tremendous potential today and in the years
ahead, with expected increasing global demand, rising prices for our products
and the unique capability to capitalize in this environment. Reinvesting in
our own company positions us well to maximize long-term value for our
    Under the announced share repurchase program, PotashCorp would be
permitted to repurchase up to 15.82 million of its outstanding shares in the
open market. The actual number of shares purchased, the timing of purchases
and the price at which the shares would be bought would depend on future
market conditions and upon potential alternative uses for cash resources. At
December 31, 2007, the company had 316,411,209 common shares outstanding.
Shares purchased under the program will be cancelled.
    PotashCorp also announced today that its Board of Directors has declared
a quarterly dividend of US $0.10 per share payable May 8, 2008 to shareholders
of record April 10, 2008.

    Potash Corporation of Saskatchewan Inc. is the world's largest fertilizer
enterprise producing the three primary plant nutrients and a leading supplier
to three distinct market categories: agriculture, with the largest capacity in
the world in potash, second largest in nitrogen and third largest in
phosphate; animal nutrition, with the world's largest capacity in phosphate
feed ingredients; and industrial chemicals, as the largest global producer of
industrial nitrogen products and the world's largest capacity for production
of purified industrial phosphoric acid.

    This release contains forward-looking statements. These statements are
based on certain factors and assumptions as set forth in this release,
including foreign exchange rates, expected growth, results of operations,
performance, business prospects and opportunities, and effective income tax
rates. While the company considers these factors and assumptions to be
reasonable, based on information currently available, they may prove to be
incorrect. A number of factors could cause actual results to differ materially
from those in the forward-looking statements, including, but not limited to:
fluctuations in supply and demand in fertilizer, sulfur, transportation and
petrochemical markets; changes in competitive pressures, including pricing
pressures; the results of negotiations with China and India; timing and amount
of capital expenditures; risks associated with natural gas and other hedging
activities; changes in capital markets and corresponding effects on the
company's investments; changes in currency and exchange rates; unexpected
geological or environmental conditions; government policy changes; and
earnings, exchange rates and the decisions of taxing authorities, all of which
could affect our effective tax rates. Additional risks and uncertainties can
be found in our 2006 financial review annual report and in filings with the
U.S. Securities and Exchange Commission and Canadian provincial securities
commissions. Forward-looking statements are given only as at the date of this
release and the company disclaims any obligation to update or revise the
forward-looking statements, whether as a result of new information, future
events or otherwise, except as required by law.

    %SEDAR: 00001608EF

For further information:

For further information: Investors: Denita Stann, Director, Investor
Relations, Phone: (847) 849-4277, Fax: (847) 849-4691, Email:
ir@potashcorp.com; Media: Rhonda Speiss, Manager, Public Relations, Phone:
(306) 933-8544, Fax: (306) 933-8844, pr@potashcorp.com; Web Site:

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