CALGARY, ALBERTA -- (Marketwire) -- 10/01/08 -- ALL AMOUNTS ARE STATED IN U.S.$

Agrium Inc. ("Agrium" or the "Company") (TSX: AGU) (NYSE: AGU) announced today that it has received approval from the Toronto Stock Exchange (TSX) to repurchase up to five percent of the number of its currently issued and outstanding common shares (being 7,899,116 common shares) through a normal course issuer bid (the "Bid"). The Bid will commence on October 6, 2008 and terminate on October 5, 2009. The shares purchased under the bid will be cancelled. Agrium presently has a total of 157,982,323 shares outstanding. The timing and exact number of shares purchased will be determined at Agrium's discretion. All repurchases will be on the open market and are expected to be funded from existing cash. Agrium has not repurchased any of its shares for cancellation within the last twelve months.

"We believe the current price of our shares does not reflect Agrium's achievements nor our strong future prospects," said Mike Wilson, President and CEO. "Although we are announcing a buy back of up to five percent of our outstanding shares, that amount could be increased depending on our share price performance, future financial position and growth opportunities. This announcement demonstrates our commitment to build and strengthen shareholder value for all of Agrium's stakeholders."

About Agrium

Agrium Inc. is a major retail supplier of agricultural products and services in both North and South America and a leading global producer and marketer of agricultural nutrients and industrial products. Agrium produces and markets three primary groups of nutrients: nitrogen, phosphate and potash as well as controlled release fertilizers and micronutrients. Agrium's strategy is to grow through incremental expansion of its existing operations and acquisitions as well as the development, commercialization and marketing of new products and international opportunities.

Forward-Looking Statements

Certain statements in this press release constitute forward-looking statements including in respect of the ability of Agrium to fund purchases of its common shares pursuant to the Bid and the expected benefits of this Bid. Such forward-looking statements involve known and unknown risks and uncertainties, including those referred to in the management discussion and analysis section of the Company's most recent annual report to shareholders, which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. A number of factors could cause actual results to differ materially from those in the forward-looking statements, including, but not limited to, general economic, market and business conditions, changes in the Company's anticipated financing requirements and the method of financing such requirements and changes in securities and other laws or regulations and the interpretation thereof. Agrium disclaims any intention or obligation to update or revise any forward-looking information as a result of new information or future events.