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Monsanto Canada Inc. and First Line Seeds Ltd. announced today that Monsanto Canada has acquired a majority equity position in the Guelph-based seed company. The agreement, effective immediately, significantly expands both companies' capabilities to service the Canadian soybean market.

The partnership between Monsanto and First Line Seeds will broaden the availability of soybeans with enhanced agronomic traits - the first wave of traits developed using biotechnology - to farmers throughout Canada, providing widespread access to the yield and productivity benefits offered by this technology. It also helps build the infrastructure necessary to market soybeans with second-wave, quality traits, that can deliver higher value to Canadian soybean growers and improved products to Canadian consumers.

"The agreement builds on the commitment both companies have made to the Canadian soybean industry,'' said Peter Hannam, president of First Line Seeds. "This agreement gives Canadian soybean producers even better access to the newest technologies in soybean production to meet their specific needs.''

"Working with First Line Seeds, we can share our global resources with an Ontario-based company focused exclusively on meeting the needs of Canadian soybean producers,'' said Jim Inksetter, business manager, corn and soybeans, for Mississauga-based Monsanto Canada.

Both Hannam and Inksetter point to the relationship with Asgrow Seed Company, that is an integral part of the agreement between First Line Seeds and Monsanto, as an example of the benefits the agreement will bring to Canadian producers. Asgrow Seed Company is wholly-owned by Monsanto Company of St. Louis, Missouri, and is the leading soybean breeder, developer and distributor in the United States.

"We will be working closely with our colleagues at Asgrow to conduct joint research and development and marketing efforts,'' Hannam says. ``Practically speaking, this relationship will start at the research level with the sharing of quality germplasm and will also include licencing agreements that will allow both companies to market and distribute varieties developed by one another. We also expect to benefit from Asgrow's tremendous  success with the introduction of Roundup Ready(R) soybeans into the U.S. market,'' Hannam says, noting that First Line Seeds will be launching its Roundup Ready varieties into the Canadian market during the 1998 season.

Hannam says innovation and a commitment to providing Canadian soybean producers with access to leading edge seed products and technology are hallmarks of First Line Seeds' success to-date. "This agreement further strengthens our ability to innovate and ensures that First Line Seeds will continue to have early access to new seed technologies and be in a position to make that technology available to Canadian producers, so that they remain competitively positioned in the global marketplace.''

Asgrow co-president, Danny Kennedy, notes that in the immediate short-term, the main difference Canadian soybean growers will notice in terms of the companies, their products or services, is that a limited number of Asgrow soybean varieties, will be made available through First Line Seeds distribution network. "For the spring of 1998, the majority of both companies' product lineups will continue to be distributed through their existing channels,'' Kennedy says. "Over the next few months, however, growers will start to notice the combination of the two lineups, as First Line Seeds will be marketing and distributing both First Line Seeds brand and Asgrow brand soybeans.''

Under the terms of the agreement between the two companies, the day-to-day management of First Line Seeds remains unchanged. The company's board of directors, which currently includes several of First Line Seeds 13 producer shareholders will, however, be expanded to include Monsanto and Asgrow representation and First Line Seeds will also become part of Monsanto's global organization.

Hannam and Inksetter note that while First Line Seeds and Monsanto are different in terms of size and structure, they share a common vision and commitment to the soybean industry. First Line Seeds is an innovative seed company with strong ties to both the soybean producer and the food soybean consumer. Monsanto is a life sciences company recognized as a leading developer and supplier of technologies which enhance the value of soybean production. ``We think that makes for a good marriage that will be of benefit to the Canadian soybean producer.''

(R) Roundup Ready is a registered trademark of Monsanto Company, Monsanto Canada Inc., licensee.

SOURCE Monsanto Canada Inc.
CONTACT:
Peter Hannam, First Line Seeds Ltd., (519) 821-0882;
Jim Inksetter, Monsanto Canada Inc., (905) 814-2471;
John Nelson, Asgrow Seed Company, (515) 331-7104

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