PotashCorp Reduces Second-Quarter Guidance

    Listed: TSX, NYSE                                          Symbol: POT

    SASKATOON, June 25 /CNW/ - Potash Corporation of Saskatchewan Inc.
(PotashCorp) today announced revised earnings guidance for second-quarter
2009, shifting from our initial target of $1.10-$1.50 per share(1) to our
current expectation of approximately $0.70 per share. The change reflects
substantially lower than forecasted potash sales volumes due to deferral of
purchases by customers around the world and lower realized prices for
phosphate fertilizers. Any necessary revisions to annual guidance will be
addressed in our second-quarter news release.

    1.  All references to per-share amounts pertain to diluted net income per

    Potash Corporation of Saskatchewan Inc. is the world's largest fertilizer
enterprise by capacity 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 and third largest in phosphate and
nitrogen; 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 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. Several 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 current global
financial crisis and conditions and changes in credit markets; 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, including water inflow; strikes and other forms of work stoppage
or slowdowns; changes in and the effects of, government policy and
regulations; and earnings, exchange rates and the decisions of taxing
authorities, all of which could affect the company's effective tax rates.
Additional risks and uncertainties can be found in the company's Form 10-K for
the fiscal year ended December 31, 2008 under captions "Forward-Looking
Statements" and "Item 1A - Risk Factors" and in the company's other filings
with the US 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, Tim Herrod, Manager, Investor
Relations, Phone: (306) 933-8543, Fax: (306) 933-8844, Email:
ir@potashcorp.com; Media, Bill Johnson, Director, Public Affairs, Phone: (306)
933-8849, Fax: (306) 933-8844, Email: pr@potashcorp.com; Web Site:

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