Monsanto Company (NYSE: MON) today announced that its Board of Directors declared a quarterly dividend increase on its common shares from 13 cents per share to 14.5 cents per share, or an increase of approximately 12 percent.  The dividend is payable on July 30, 2004, to shareowners of record on July 9, 2004.

The company also announced that it is increasing its fiscal year 2004 earnings per share (EPS) guidance because of continued good performance globally so far this year, particularly in Brazil and Asia, and in U.S. seeds and traits.  The company now expects EPS will be in the range of $1.55 on an ongoing basis for the 2004 fiscal year, with approximately 45 percent of total EPS on an ongoing basis expected in the third quarter.

The company also remains committed to its $500 million, three-year share repurchase plan.  As previously reported, through March 26, 2004, Monsanto had repurchased $132.6 million of its common shares since the end of July 2003, when the repurchase program was authorized.

"The share repurchase program and the dividend increase reflect Monsanto's strong cash generating capabilities and the continuation of our strategy to return value to our shareowners," said Monsanto Chairman, President and Chief Executive Officer Hugh Grant.

Monsanto Company is a leading global provider of technology-based solutions and agricultural products that improve farm productivity and food quality.

Roundup is a trademark owned by Monsanto Company and its wholly owned subsidiaries.
References to Roundup products in this release mean Roundup branded and other glyphosate based herbicides, excluding lawn-and-garden products.

Reconciliation of Non-GAAP Financial Measure

This release uses the non-GAAP financial measure of earnings per share (EPS) excluding the effect of certain items.  A non-GAAP EPS financial measure (which the company sometimes refers to as EPS from ongoing business) may exclude the impact of restructuring charges, charges associated with the settlement of litigation, gains and losses on the sale of assets, and certain other items.  The specific items that are excluded from, and result in, the company's non-GAAP EPS financial measure are clearly identified as such in this release.  The disclosure of EPS excluding the effect of certain items is intended to supplement investors' understanding of the company's operating performance.  This non-GAAP financial measure may not be comparable to similar measures used by other companies.  Furthermore, this non-GAAP financial measure is not intended to replace net income (loss), cash flows, financial position, or comprehensive income (loss), as determined in accordance with accounting principles generally accepted in the United States.  The non-GAAP financial measure used in this release is reconciled to the most directly comparable financial measure calculated and presented in accordance with GAAP below.

Reconciliation of Non-GAAP EPS

Fiscal Year 2004
                                                             Target

Net Income                                              $0.70
2004 Restructuring Charges - Net               $0.46
Estimated 2004 Discontinued Operations
and Related Restructuring Charges - Net      $0.13
Goodwill Impairment Charge
for Global Wheat Business                          $0.26
Net Income from Ongoing Business             $1.55