DuPont and Pioneer Hi-Bred International, Inc. today announced that they have been informed by the European Commission that DuPont's acquisition of the 80 percent of Pioneer not currently owned by DuPont has received merger clearance.

The European Commission clearance is another significant step in the process that will result in
completion of the merger, which is expected to close late this summer. This transaction will be another major step in DuPont's life sciences strategy and will strengthen and accelerate its capacity to discover, develop and commercialize a new generation of products across the value chains for food and feed crops, food ingredients, industrial applications and nutrition science.

Under the terms of the merger agreement, Pioneer shareholders will receive $40 per share. In
aggregate, 45 percent of the shares will receive cash and 55 percent of the shares will receive DuPont stock. Pioneer shareholders will have certain rights to elect which form of consideration they receive. The total equity value of the transaction is estimated to be approximately $7.7 billion for the 80 percent of Pioneer not currently owned by DuPont.

In September 1997, DuPont and Pioneer formed a research alliance and in January 1998, a separate joint venture company - Optimum Quality Grains, L.L.C. DuPont also invested $1.7 billion in Pioneer to acquire a 20 percent equity interest.

Pioneer Hi-Bred International, Inc. is the world's leading supplier of agricultural genetics and is the leading developer and integrator of agricultural technology. Headquartered in Des Moines, Iowa, Pioneer develops, produces, and markets a full line of seeds, forage and grain additives and services to grain and livestock producers, grain processors and other customers worldwide.

DuPont is a science company, delivering science-based solutions that make a difference in people's lives in food and nutrition; health care; apparel; home and construction; electronics; and transportation. Founded in 1802, the company operates in 65 countries and has 92,000 employees.

Company news release
N1878