EXHIBIT 99.1

                     [LETTERHEAD OF IMPERIAL SUGAR COMPANY]

          IMPERIAL SUGAR COMPANY COMPLETES SALE OF SUGAR BEET FACTORIES
                              TO AMERICAN CRYSTAL

     SUGAR LAND, TX, October 9, 2002 -- Imperial Sugar Company (OTCBB:IPSU)
today announced that it has completed the sale of its beet processing facilities
in Sidney, Montana and Torrington, Wyoming, and its Hereford, Texas beet
factory, to American Crystal Sugar Company, a cooperative based in Moorhead,
Minnesota, for approximately $34 million. This transaction has been completed
simultaneously with a parallel transaction whereby American Crystal has leased
the Torrington facility to the Western Sugar Cooperative.

     "We are pleased that we have been able to close this transaction in such a
timely manner," said Robert A. Peiser, Imperial Sugar's president and chief
executive officer. "That is a tribute to the fact that this is a good
transaction for all parties involved and to the cooperation evidenced by all of
the parties."



IMPERIAL SUGAR COMPANY                                                    Page 2

     Mr. Peiser added, "This transaction enhances our financial structure by
enabling us to further reduce debt and lowering our working capital needs. At
the same time, it allows the Company to concentrate its resources in its most
strategic regions of the Southeast, Texas and the West Coast."

     To maintain a seamless transition for its customers, Imperial Sugar will
service certain Sidney and Torrington customers from its refineries in Sugar
Land, Texas, Gramercy, Louisiana, and Port Wentworth, Georgia; sugar beet
factories in Mendota and Brawley, California; and a packaging facility in Tracy,
California.

     Mr. Peiser continued, "Our California facilities remain an excellent fit
with our long-term strategic objectives as they are close to large population
centers and to many of our large industrial customers. We remain committed to
the California beet industry and look forward to continuing to grow our
relationship with our grower suppliers and customers in those areas."

     Mr. Peiser concluded, "We are also excited by the strength of our Imperial,
Dixie Crystal and Holly brands in our core regions in Texas and in the
Southeast, as well as the strength of the Pioneer brand owned by Michigan Sugar
Company, with which we have a strong marketing relationship. Looking ahead, we
plan to develop initiatives to build further on our strong brands and loyal
customer base."

     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 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.

Statements regarding future market prices and margins, future operating results,
sugarbeet acreage, future operating efficiencies, future government and
legislative action, cost savings, the



IMPERIAL SUGAR COMPANY                                                    Page 3

future status of financing arrangements, liquidity and ability to finance our
operations, proposed sales of assets or businesses and other statements which
are not historical facts contained in this release are forward-looking
statements that involve certain risks, uncertainties and assumptions. These
include, but are not limited to, market factors, energy costs, 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,
available quantity and quality of sugarbeets, court decisions and actions, the
results of negotiations, actual or threatened acts of terrorism or armed
hostilities, legislative and administrative actions 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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