Monsanto Company (NYSE: MON) announced today the pricing terms of the new series of Senior Notes due 2025 which are to be issued in exchange for a portion of its outstanding 7 3/8 percent Senior Notes due 2012, which were issued in 2002.

The total exchange price for each $1,000 principal amount of 7 3/8 percent Senior Notes tendered, using a yield of 4.608 percent, will be $1,163.39, consisting of $1,000 principal amount of new Notes and $168.09 in cash. The interest rate on the new Notes will be 5.50 percent. The yield on the new Notes will be 5.539 percent and the issue price of the new Notes will be $995.30, which has been determined by reference to the yield on the designated 30-year benchmark security as of the pricing time, which was 4.439 percent. Holders who exchange their 7 3/8 percent Senior Notes will also receive accrued interest on the Notes to the settlement date, or $2.05 per $1,000 principal amount of the Notes exchanged.

Holders who tendered their Senior Notes after 5 p.m., EDT, on Aug. 5, 2005, will receive, for each $1,000 principal amount of Senior Notes tendered, the applicable total exchange price less the early participation payment as specified in the Offering Memorandum.

The exchange offer is limited to holders of the 7 3/8 Senior Notes that have certified certain matters to Monsanto, including their status as "qualified institutional buyers" within the meaning of Rule 144A under the Securities Act of 1933. The exchange offer is scheduled to expire at 5 p.m., EDT, on Aug. 22, 2005, unless extended, and the exchange of old Senior Notes for new 5.50 percent Senior Notes is currently scheduled to occur on Aug. 25, 2005.

The exchange agent for the exchange offer is Global Bondholder Services Corporation. Eligible holders may call the exchange agent at 866-470-4200 or 212-430-3774 for more information.

The new Notes will not be registered under the Securities Act or any state securities laws. Therefore, the new Notes may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and any applicable state securities laws.

This press release is not an offer to sell or a solicitation of an offer to buy any security. The offer to exchange is being made solely by the Offering Memorandum and related letter of transmittal.

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