Marysville, Ohio
July 7, 2003

Consumer demand remains strong in the face of unfavorable weather

The Scotts Company, the global leader in the consumer lawn and garden industry, today said it expects sales in fiscal 2003 will grow in the mid-single digits on a percentage basis compared to last year.

"Even with the challenges we faced in the third quarter, particularly April, we're confident that we will achieve double-digit adjusted net income growth this year," said Jim Hagedorn, chairman and chief executive officer. "We continue to strive for our original goal of 15 percent net income growth and remain encouraged by strong consumer demand for our products. At our largest retail partners, including Kmart, consumer purchases of our products is up 7 percent on a year-to-date basis and about 3 percent for the quarter. In markets like the Midwest, where weather in May and June was favorable for gardening activities, consumer purchases were even stronger."

Hagedorn said shipments to independent garden centers and hardware stores -- a major focus for Scotts in 2003 -- have increased about 9 percent year-to-date.

For the recently ended third quarter -- the peak of the gardening season -- sales will be essentially flat to the $689 million reported for the same period last year. The Company said sales in May and June improved from 2002, but were not enough to offset the impact of cold and wet weather in April. Adjusted net income in the quarter, which excludes restructuring and other items, is expected to range from $89-93 million.

The Company will report complete third quarter and year-to-date results on July 31, 2003. Scotts management will hold a conference call that same day to discuss these results and provide a more complete overview related to the balance of the year.

"Overall, we expect the category in the U.S. will grow 4 to 5 percent this year and we believe we have gained market share throughout the season," Hagedorn said. "These facts demonstrate that the fundamentals of the business remain as strong as ever. While we could not have predicted the impact of wet and cold weather in many critical markets, we are controlling expenses to help offset this year's challenges.

"There are a lot of great stories at Scotts. Our European business continues to perform in line with expectations and our U.S. advertising strategy has been strongly accepted by consumers. Even with our challenges, we continue to post strong results while investing in long-term initiatives like new product categories such as pottery, retail channel development, improved in-store execution and Scotts LawnService. Those investments are why we remain steadfast in our long-term goals to continue growing sales in the mid to high single digits and consistently grow earnings by double digits."

The Scotts Company is the world's leading supplier of consumer products for lawn and garden care, with a full range of products for professional horticulture as well. The company owns the industry's most recognized brands. In the U.S., the company's Scotts®, Miracle-Gro® and Ortho® brands are market leading in their categories, as is the consumer Roundup® brand which is marketed in North America and most of Europe exclusively by Scotts and owned by Monsanto. In the Europe, Scotts' brands include Weedol® Pathclear®, Evergreen®, Levington® Miracle-Gro®, KB®, Fertiligene® and Substral®.