EXHIBIT 99.1


CONTACT      Steven O. Cordier
             Vice President and CFO
             Penford Corporation
             303-649-1900
             steve.cordier@penx.com

       PENFORD CORPORATION REPORTS PRIVATE PLACEMENT OF 650,000 SHARES OF
                                  COMMON STOCK

ENGLEWOOD, CO., MARCH 20, 2003 - Penford Corporation (Nasdaq: PENX) (the
"Company" or "Penford") announced today that it has completed a private
placement of 650,000 shares of its common stock with the T. Rowe Price
Small-Cap Value Fund for approximately $7.2 million. The Company intends to
use the proceeds of this placement to reduce outstanding debt. The purchase
price of $11.11 per share was based on a five percent discount to the
volume-weighted average price of Penford common stock over the
three trading days ending March 13, 2003.

The securities issued in the private placement have not been registered under
the Securities Act of 1933, as amended, and may not be offered or sold in the
United States absent an effective registration statement covering such
securities or an applicable exemption from such registration requirements.
Penford has agreed to file a registration statement with the Securities and
Exchange Commission covering the resale of the securities issued in the private
placement. This press release does not constitute an offer or sale of any of
Penford's securities.

ABOUT PENFORD CORPORATION

Penford Corporation develops, manufactures and markets specialty natural-based
ingredient systems for various applications, including papermaking and food
products. Penford has nine locations in the United States, Australia and New
Zealand.

For automated shareholder information, please call 1-888-317-2013.


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