Monsanto Company (Press Release)

Monsanto Implements Plans
For Financing Mechanisms

Monsanto Company is implementing plans for financing over the next few years to ensure the company has the financial flexibility it needs as it completes pending acquisitions and prepares for the commercialization of its new product pipeline.

"Our objective is to come out of 1999 with an appropriately balanced capital structure, recognizing the significant future income growth we expect from our new products," said Monsanto Chief Financial Officer Gary Crittenden. He also noted that the company expects 1998 third-quarter earnings to be in line with current estimates by financial analysts.

The company has announced four mergers and seed company acquisitions in recent months. Of those, the purchase of Plant Breeding International Cambridge and Cargill Inc.'s international seed operations are essentially complete. Of the two remaining, the merger with Delta and Pine Land Company (D&PL), once customary regulatory reviews are completed, will be accomplished by exchanging approximately 33 million new shares of Monsanto for the outstanding shares of D&PL.

The acquisition of the remaining 60 percent of the shares of DEKALB Genetics Corporation that Monsanto already does not own also is pending regulatory approval. The cost of the acquisition will be $2.3 billion. In conjunction with the acquisition, and in light of current market conditions, the company felt it prudent to have additional liquidity and have mandated Citibank to arrange an additional $2 billion revolving credit facility.

Additionally, the company plans to issue equity as market conditions permit. The proceeds from that equity will be used to retire commercial paper. The equity offering is expected to be of sufficient size to enable the company to retain its flexibility while recognizing the company's expectations for strong future income growth. The offering may take the form of either common stock or another security that would be mandatorily convertible into common stock.

To accommodate both the additional publicly traded debt and equity, Monsanto also intends to increase its shelf filing from $2 billion to $6 billion.

Monsanto is a life sciences company, committed to finding solutions to the growing global needs for food and health by applying advanced bioscience and biotechnology to agriculture, nutrition and health to produce high-value agricultural products, pharmaceuticals and food ingredients.

This news release contains certain forward-looking statements. These forward-looking statements are based on past experience and current expectations, but actual results may differ materially from those anticipated and there can be no guarantee that future results will be similar to those of the past. Certain factors which could cause actual results to differ materially from expected and historical results include: weather; price; new use; patent expiration; local farming practices; local economic conditions; the type of crops planted; the availability, price and desirability of competitive products and practices; as well as economic, competitive, governmental, intellectual property, technological and other factors identified in Monsanto Company's Form 10-K and Form 10-Q filings with the Securities and Exchange Commission. This press release is not an offer to sell nor the solicitation of an offer to buy any security which will be made only be means of a prospectus.

For further information please contact:

Scarlett Lee Foster (314-694-2883)
scarlett.foster@monsanto.com