Monsanto Company reported a 34 percent increase in net income during the second quarter of 1999 compared with net income in the same period of 1998. Monsanto's net income for the quarter was $344 million, or 53 cents per share on a diluted basis, on record sales of $2.6 billion. In the second quarter of 1998, net income was $257 million, or 41 cents per share on a diluted basis, on sales of $2.1 billion.

For the first half of the year, Monsanto reported a 5 percent increase in net income compared
with net income in the first half of 1998. In the first half of 1999, net income was $476 million, or
73 cents per share on a diluted basis, on record sales of $4.9 billion. In the first half of 1998, the
company's net income was $453 million, or 73 cents per share on a diluted basis, on sales of
$3.8 billion.

Net income in the second quarter and first half in both 1999 and 1998 includes income from
discontinued operations. Monsanto announced on July 1 its intent to divest its artificial sweetener
and biogum businesses. The process of selling these businesses is under way. As a result, the
sweetener and biogum businesses have been reclassified as discontinued operations.

Aftertax income from continuing operations was $326 million, or 50 cents per share on a diluted
basis, for the second quarter, and $446 million, or 69 cents per share on a diluted basis, for the
first half of 1999. In 1998, aftertax income from continuing operations was $224 million, or 36
cents per share on a diluted basis, for the second quarter, and $390 million, or 63 cents per
share, for the first half. In 1998, if a one-time net charge for divestitures and other unusual items
was excluded, aftertax income from continuing operations would have been $237 million, or 38
cents per share on a diluted basis, in the second quarter and $403 million, or 65 cents per share,
in the first half.

Monsanto recorded a 72 percent increase in earnings before interest expense and taxes (EBIT)
in the second quarter of 1999 compared with EBIT in the same period last year. EBIT was a
record $641 million in the second quarter of 1999, compared with $372 million in the second
quarter of 1998. EBIT for the first half of 1999 was $946 million, also a record, compared with
$667 million during the same period in 1998, a 42 percent increase. Earnings before interest
expense, taxes, depreciation, and amortization (EBITDA), and excluding unusual items,
increased by 69 percent during the second quarter compared with EBITDA in the same period
in 1998. EBITDA, excluding unusual items, was $817 million for the second quarter 1999,
however, there were no unusual items in 1999. During the same period last year, EBITDA,
excluding unusual items, was $483 million. Unusual items in last year's second quarter included
charges related to the exit of the optical products business and gains from the reversal of past
restructuring reserves. In the first half of 1999, EBITDA, excluding unusual items, improved to
$1.3 billion, from $887 million during the first half of 1998, an increase of 45 percent.

"Our performance so far this year is further evidence that our strategies are valid and that we're
executing them effectively in the marketplace,'' said Robert B. Shapiro, Monsanto chairman and
chief executive officer. "Our agricultural business, led by growth in Roundup herbicide and the
rapid adoption of crops with our biotechnology traits, has significantly outperformed our competition in the face of extremely difficult industry conditions. And our pharmaceutical business has shown world-class capabilities in marketing Celebrex arthritis treatment to industry records.'' Shapiro added that the company is on-track to meet its long-term targets for earnings growth.

The agricultural segment posted second-quarter sales of $1.6 billion, compared with sales in the second quarter last year of $1.4 billion. EBIT, excluding unusual items, was $505 million, compared with EBIT, excluding unusual items, of $483 million for the same period in 1998. EBITDA, excluding unusual items, improved to $618 million for the segment, from EBITDA,
excluding unusual items, of $555 million in the second quarter of 1998.

The agriculture segment was led by strong demand for Roundup herbicide. Total U.S. acres
planted with crops containing Monsanto biotechnology traits rose 38 percent in 1999 from acres
planted the same time a year ago. With the agricultural unit's strong performance, Monsanto is
accelerating the integration of its agricultural and seed businesses, sharpening its focus and
reducing its costs.

Searle, Monsanto's pharmaceutical segment, had EBIT, excluding unusual items, of $212 million
for the second quarter, compared with a $15 million loss before interest expense and taxes in the
second quarter of 1998. On a quarter-to-quarter basis, EBITDA, excluding unusual items, for
Searle improved to $256 million in 1999 from $15 million in 1998.

Searle recorded its best sales period ever, with net sales of $937 million in the second quarter of
1999 compared with $607 million during the same period in 1998, an increase of more than 54
percent. Celebrex arthritis treatment continues to set industry records for a product launch, as
measured by total prescription volume, prescription refill rates for arthritis medications, and
cumulative patient days of use. Celebrex is now the most- prescribed branded arthritis
prescription medication in the United States, with more than 7 million prescriptions dispensed,
including 2.4 million refills, and well over 200 million patient days of use.

Company news release
N2009