DEKALB Genetics Corporation and Ayala Agricultural Development Corporation (AADC), a wholly owned subsidiary of Ayala Corporation, have formed a joint venture to produce and market DEKALB brand hybrid corn seeds in the Philippines. An additional joint venture, DEKALB Ayala Philippines Research Company, will work to develop new tropical corn varieties. Terms of the agreements were not disclosed.

"We are delighted to have Ayala Agricultural Development Corporation as a partner," said Richard T. Crowder, Senior Vice President of International. "The Philippines is a key corn market and it is strategically important. AADC is one of the leading corn marketers in the country and a proven first-class producer and distributor. By working together, we believe that AADC's already
strong position in the Philippines can be enhanced."

AADC President Antonio Laurel said he welcomed the expansion of DEKALB's market presence in the Philippines as a partner of AADC. "We look forward to this opportunity to work with DEKALB to develop and market new tropical corn varieties that will increase corn productivity in our country and push us forward to corn production self-sufficiency," Laurel said. "This is very much in line with the government's thrust on food security and countryside development."

While DEKALB currently has little market presence in the Philippines, it is a leader in other tropical corn markets including Indonesia, Vietnam, and Thailand, where DEKALB works in association with its licensee, the C.P. Group of Thailand. In the Philippines, a corn market of about 8 million acres, the growing environment for corn is characterized by severe disease pressure, noted Patrick Wei, DEKALB's Vice President of Asian and Pacific Operations.

"In our research joint venture, we can draw upon DEKALB's strong worldwide collection of tropical germplasm, especially material from South Africa, Zimbabwe, Thailand, Brazil, and Mexico," Wei said. "DEKALB has developed and evaluated this material under stressful conditions similar to the Philippines'. We are confident that we can develop corn hybrids with strong defensive traits and superior yields that will further strengthen our product lines."

DEKALB and Ayala Agricultural Development would also expect to introduce Roundup Ready(R) corn hybrids and hybrids with transgenic insect resistance to the Philippines in the near future, Wei added. DEKALB, working with Monsanto Company, is the first and only seed company to offer Roundup Ready corn technology. Roundup Ready hybrids were introduced in 1998 to the U.S. market -- where they were planted on nearly 1 million acres -- and the company is working aggressively to expand the technology into international markets.

Ayala Corporation is the oldest business house and the largest and most widely diversified conglomerate in the Philippines. Listed in 1976, Ayala Corporation now ranks highest among listed companies in the Philippine Stock Exchange in terms of market capitalization. AADC is Ayala Corporation's agribusiness subsidiary and is engaged in the production and marketing of
hybrid seed corn, coconut farming, and cattle farming. In 1997, AADC's research program developed and successfully launched two new corn hybrids that topped the government trials.

Based in DeKalb, Ill., DEKALB Genetics Corporation is a worldwide leader in agricultural genetics and biotechnology for seed and swine. DEKALB Genetics Corporation Class B Common Stock is traded on the New York Stock Exchange under the symbol DKB.

NOTE: Roundup Ready(R) is a registered trademark of, and used under license from, Monsanto Company.

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