At an investor meeting hosted by Monsanto (NYSE: MON) today, company executives will discuss the company’s ongoing business transition from a company built around its agricultural chemical business to one fueled by its seeds and traits business. As a part of the strategic evolution, executives will describe the company’s priorities to drive a 10 percent compounded annual growth rate in 2005 and 2006.

With seeds and traits the clear growth driver for the company’s future, executives continue to focus on mid-term growth objectives.

“The seeds and traits business represents the future of Monsanto, both in terms of our business offerings and growth opportunities,” Monsanto Chairman, President and Chief Executive Officer Hugh Grant said. “With the gross profit for the seeds and traits business surpassing that of our Roundup herbicide franchise this fiscal year, the accelerated growth in our seeds and traits will drive our business in the next few years.”

Grant will begin the investor meeting with an overview of Monsanto’s current operations and growth objectives. Following Grant, four other executives will present information on key focus areas for growth for the company. Those presentations include: Executive Vice President of International Commercial Operations Brett Begemann presenting on Monsanto’s Roundup strategy; Executive Vice President of North America Commercial Operations Carl Casale on Monsanto’s overall seeds and traits strategy;

Chief Technology Officer Robb Fraley on the company’s technology-rich pipeline; and Chief Financial Officer Terry Crews on the financial commitments and measures of company success.

Seeds and Traits Drive Mid-Term Growth

Monsanto is in the process of managing a unique portfolio – including a maturing Roundup business and a growth-oriented technology business, Grant indicated.

“We’re at the leading edge of our business evolution,” said Grant. “But as Monsanto becomes a predominantly seeds and traits company, the growth in this business will become more pronounced and more important to the overall growth of the company.”

To drive the company’s mid-term growth, the company is focusing on a number of key priorities:

• Managing the decline of the Roundup business to stabilization;

• Accelerating growth in the seeds and traits business;

• Leveraging the company’s rich pipeline and technology leadership;

• Setting achievable financial targets and delivering on them; and,

• Implementing cost actions quickly.

Grant indicated that for fiscal year 2004, the company expects to generate $1.2 billion in gross profit for the seeds and traits business, accentuating the continuing growth in that sector. In his presentation, Casale will outline the factors driving the increased success of the seeds and traits business.

Among the most important areas of growth opportunity for the seeds and traits business is the increased penetration of Monsanto’s biotech traits as well as the increasing adoption of seed with multiple “stacked” biotech traits, like YieldGard Plus corn – a product combining protection from European Corn Borer and the corn rootworm that recently earned U.S. Environmental Protection Agency registration.

Casale also indicated that Monsanto’s U.S. commercial organization has been challenged to continue the success and expansion of programs to market grain domestically. With domestic markets established for grain awaiting European Union approval, Casale said the potential U.S. market for Monsanto’s Roundup Ready corn is likely to reach more than 50 million acres – significantly higher than previous expectations.

“We’ve made a conscious effort to make business decisions that allow our business to grow based on the dynamics of our key markets,” said Casale. “We’re not simply hoping for positive resolutions of political and regulatory situations that are beyond our control.”

Financial Focus Underpins Evolution and Growth

Grant indicated that the company’s mid-term view of growth is focused on cash generation, reducing costs in the Roundup business, and delivering on earnings-per-share (EPS) goals.

“Going into 2003, we set realistic commitments – and we’re delivering on them,” said Crews. “Achieving these goals has put us in a position of financial strength to approach our strategic priorities going forward.”

Crews indicated the company now expects free cash flow for calendar year 2003 to be closer to the $100 million end of the $50-million-to-$100-million guidance the company provided in October. Guidance for free cash flow in fiscal year 2004 remains the same, expected to be in the range of $350 million to $400 million. Additionally, the company’s EPS guidance for fiscal year 2004 remains unchanged in the range of $1.40 to $1.50, excluding the effect of previously announced restructuring actions.

For more information regarding the company’s free cash flow and EPS guidance, see the reconciliations included in Crews’ slide presentation on the company’s web site.

Monsanto Company is a leading global provider of technology-based solutions and agricultural products that improve farm productivity and food quality.

Roundup, YieldGard and Roundup Ready are trademarks owned by Monsanto Company and its wholly owned subsidiaries.