Cenex/Land O'Lakes Agronomy Company has agreed to purchase the distribution business of Terra Industries Inc..

The purchase will include Terra's approximately 400 farm supply retail facilities, seed and chemical distribution and other related businesses, employing more than 2,600 people in 31 states and Canada. The purchase also includes Terra's portion of ownership in the Omnium chemical formulation plants in St. Joseph, Missouri, and Blytheville, Arkansas.

The agreement does not include purchase of Terra's nitrogen manufacturing facilities.

"This opportunity to purchase Terra's distribution business enhances our total cooperative
agriculture supply business,'' said Al Giese, president, Cenex/Land O'Lakes Agronomy Company.
"We're continually looking for ways to improve efficiency as we source and supply products and
services to farmers through local cooperatives. Our regional cooperative's agronomy business
growth and profitability depends on increasing volume and maximizing our distribution and service
capabilities.''

Specifically the acquisition of Terra's distribution business would bring the Agronomy Company and the regional cooperative system an additional $1 billion in crop protection product sales, 2.5 million tons of plant food business, and over $100 million in seed sales. The Agronomy Company ended 1998 with nearly $700 million of crop protection product sales and 5 million tons of plant food sales.

The transaction is expected to be finalized by mid-summer. Giese says farmers currently doing
business with Terra should not experience operational changes.

The Cenex/Land O'Lakes Agronomy Company provides plant food, crop protection products,
information management and agronomy technical services (and seed through an alliance with Land O'Lakes), to producers through local cooperatives. The Agronomy Company is a marketing joint venture of Cenex Harvest States Cooperatives and Land O'Lakes, Inc.

Company news release
N1777