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Monsanto reports first-quarter earnings
St. Louis, Missouri
April 22, 1999

Monsanto Company reported aftertax income of $132 million, or 20 cents per share on a diluted basis, on sales of $2.5 billion in the first quarter of 1999. In the first quarter of 1998, aftertax income was $196 million, or 32 cents per share on a diluted basis, and sales were $2 billion. Higher interest expense and amortization costs during the first quarter of 1999 more than offset improved earnings from operations, resulting in lower aftertax income when compared with results from the first quarter of 1998.

Based on an EBIT measure (earnings before interest expense and taxes), the company recorded
first-quarter 1999 income of $350 million, compared with $362 million in the first quarter of 1998. EBITDA (earnings before interest expense, taxes, depreciation and amortization) was $539 million for the first quarter of 1999. In the same period last year, EBITDA was $499 million.

"We're encouraged by early 1999 events,'' said Robert B. Shapiro, chairman and chief executive officer. "Most notably, early patient demand for Celebrex arthritis treatment is at an unprecedented level for any new drug. Celebrex is on track to become the most successful new
product ever launched in the history of the U.S. pharmaceutical industry. Additionally, we're
advancing our product pipeline, integrating our recently acquired seed companies, experiencing
strong demand for crops with biotechnology traits, and seeing continued solid performances from
our core businesses like Roundup herbicide.''

The agricultural segment had a strong quarter, recording EBIT of $281 million for the period
even though higher amortization costs in 1999 associated with the seed company acquisitions and higher expenses relating to economic weakness in several world areas depressed the segment's EBIT compared with 1998 first-quarter EBIT of $306 million. EBITDA for the agricultural
segment improved to $396 million for the quarter. This compares with EBITDA of $384 million
in the first quarter of 1998.

Sales for the agricultural segment increased 31 percent principally because of solid performances
for the core herbicide and biotechnology crop businesses. Volume growth of Roundup approached the historic 20 percent trend line for the quarter, with demand especially strong in China, Canada and the United States. Grower demand for seed with Monsanto's transgenic traits continued to grow substantially during the quarter. First-quarter results also benefited from sales from DEKALB Genetics Corp., Plant Breeding International Cambridge, and certain operations of Cargill Inc.'s seed businesses, all acquired during 1998.


Searle, Monsanto's pharmaceutical segment, had EBIT of $78 million for the first quarter, more
than a six-fold increase from EBIT of $12 million in the same period in 1998 despite the inclusion
of $100 million of partnering income in 1998 results. On a quarter-to-quarter comparison,
Searle's EBITDA was $113 million in 1999 vs. $41 million in 1998.

Pharmaceutical sales of $825 million for the quarter were robust, led by the launch of Celebrex in
mid-February in the United States. Celebrex is the first of a new class of compounds, known as
COX-2 inhibitors, and is indicated for treating the pain and inflammation of both rheumatoid
arthritis and osteoarthritis. By the end of the first quarter, more than 2 million prescriptions were
written for Celebrex, and sales reached $279 million. Celebrex also has been approved for sale
in eight additional markets since the beginning of 1999 -- Peru, Brazil, Canada, Mexico,
Colombia, Argentina, Switzerland and Hong Kong. Excluding Celebrex, Searle's global trade
sales for all other products increased 26 percent compared with first-quarter 1998 results.

EBIT for the nutrition and consumer products segment was $39 million for the quarter, down
from EBIT of $82 million in last year's first quarter, primarily because of the divestiture of the
Ortho lawn-and-garden business and lower sweetener sales. Sales of Roundup lawn-and-garden
products continued to be strong. EBITDA for the nutrition and consumer products segment was
$65 million in the first-quarter of 1999, and $111 million in the same period during 1998.

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