New York, New York
September 26, 2003

Standard & Poor's equity analyst covering diversified industrial and materials companies has upgraded the STARS ranking on shares of Monsanto Co. (NYSE: MON) from "Avoid" (** out of *****) to "Hold" (*** our of *****) at $24.23 per share. A leading provider of independent research, indices and ratings, Standard & Poor's made this announcement through Standard & Poor's MarketScope, its real-time market intelligence service.

"Brazil's acting president has indicated he would sign a decree enabling the legal planting of genetically modified soybeans. The decree, if signed, would likely come just in time for the bulk of Brazil's soy planting season," says Stewart Glickman, Diversified Industrials and Materials Analyst, Standard & Poor's Equity Research Services. "A major producer of herbicides and genetically-modified seeds and traits, Monsanto is trading at 17 times our 2004 earnings per share estimate of $1.45, above peers. However, a decline has brought its shares near our 12-month target price of $23, based on relative P/E (price/earnings ratio), and on our discounted cash flow model using an estimate of 5%-6% long-term free cash flow growth. With a 2.1% dividend yield, we would hold Monsanto," concludes Glickman.

Standard & Poor's Stock Appreciation Ranking System (STARS), which was first introduced on December 31, 1986, reflects the opinions of Standard & Poor's equity analysts on the price appreciation potential of 1,200 U.S. stocks for the next 12 month period. Rankings range from five-STARS ("Buy") to one-STARS ("Sell").

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