St. Louis, Missouri
April 23, 2002

• Sales of $1.2 billion are down 7 percent from first-quarter 2001 sales.
• Sales of seeds and traits are up 17 percent, but were more than offset by lower sales of Roundup herbicide.

Other Developments

• Monsanto and DuPont resolve legal disputes and agree on licenses for Roundup Ready corn and soybeans.
• Approval received for insect-protected cotton in India.

Monsanto Company (NYSE: MON) today reported sales and earnings for the first quarter of 2002.

"Our first-quarter results reflect the ongoing transformation of Monsanto," said Hendrik A. Verfaillie, Monsanto president and chief executive officer.

"We saw greater contribution from our technology-based solutions delivered through our seeds and traits business, while sales of our traditional crop protection products in the first quarter were lower," he said.

"We're well-positioned with all our products as we enter the 2002 planting season in the Northern Hemisphere. The second quarter is the peak quarter for our Roundup herbicide business in North America, and we expect to preserve our market position as we enter the second year following expiration of our U.S. patent for Roundup."

Sales

First-quarter net sales decreased 7 percent to $1.2 billion. The effect of foreign currency exchange rates, particularly the euro and the Brazilian real, negatively affected sales in the quarter by approximately 2 percent when compared with first-quarter 2001 net sales. An increase in trait revenues for Monsanto's corn and soybean technologies in the quarter was more than offset by lower sales of Roundup.

Reported Earnings

First-quarter 2002 net income was $86 million, compared with last year's first-quarter income of $55 million. Results for the first quarter of 2002 reflect a $23 million aftertax benefit from the adoption of a new accounting standard. This new accounting standard, among other things, eliminates goodwill amortization. EPS for the quarter was 33 cents per share (including 9 cents for the goodwill amortization treatment), compared with 21 cents per share for the same period last year. First-quarter 2001 results also included aftertax special items of $13 million, or 5 cents per share, related to restructuring.

Segments

Monsanto reports its results in two segments: Agricultural Productivity and Seeds and Genomics. The Agricultural Productivity segment consists primarily of crop protection products and the company's animal agricultural business. The Seeds and Genomics segment consists of the global seeds and related trait business, and genetic technology platforms. As discussed in this section, EBIT (earnings before taxes and interest) excludes pretax special items.

Sales for the Seeds and Genomics segment increased to $585 million for the first quarter of 2002. The increase was led by continued strong demand for Monsanto's Roundup Ready technology and YieldGard corn traits. Roughly half of the increase in trait revenues resulted from a shift in royalty sales for Roundup Ready corn and soybeans and YieldGard corn traits to the first quarter from the second quarter.

EBIT improved for the Seeds and Genomics segment to $116 million, from a loss of $23 million in the first quarter of 2001. The improvement was driven by the increase in trait revenues, lower selling, general and administrative (SG&A) and research and development (R&D) expenses, and adoption of the new goodwill accounting standard.

In the Agricultural Productivity segment, sales and volumes of Roundup decreased worldwide. The lower average selling prices for Roundup were primarily the result of a shift to lower-priced products in the United States. EBIT declined to $28 million for the first quarter of 2002 as expected, from $152 million in the same period last year, primarily because of lower overall sales of Monsanto's crop protection products.

Other Developments

Monsanto and DuPont recently announced a broad-reaching business agreement that included the resolution of all pending lawsuits and granting of technology licenses, including royalty-bearing licenses to Monsanto's Roundup Ready corn and soybean technologies. The net effect of this agreement was immaterial to Monsanto's earnings in the first quarter, but will contribute to the
company's trait revenues going forward.

In late March, Monsanto's seed partner in India, Maharashtra Hybrid Seeds Company Limited, received commercial approval for Bollgard insect-protected cotton. With this approval, growers in the three largest cotton-producing countries (China, the United States and India) have access to cotton seeds improved through biotechnology.

Because of further devaluation of the Argentine peso, first-quarter earnings were reduced by approximately $24 million, or 9 cents per share. Management continues to closely monitor the economic situation in Argentina, especially any possible effect on 2002 EPS guidance and the company's U.S. dollar-denominated trade receivables position.

Future Guidance

Monsanto's management expects EPS in 2002 to be in the range of $2.23 to $2.27, compared with 2001 EPS of $1.80. As previously reported, the 2002 EPS guidance includes the benefit resulting from the company's adoption of a new accounting standard. This accounting standard eliminates goodwill amortization and is expected to add 40 cents per share to Monsanto's annual earnings.

Second-quarter 2002 EPS is expected to be in the range of $1.40 to $1.45, compared with second-quarter 2001 EPS of $1.60. This guidance includes a 17- cent benefit from the goodwill amortization accounting standard in the second quarter.

Monsanto Company, an 85 percent-owned subsidiary of Pharmacia Corporation, is a leading global provider of technology-based solutions and agricultural products that improve farm productivity and food quality.

References to Roundup products in this release mean Roundup branded and other glyphosate-based herbicides, excluding lawn and garden products.