Delta and Pine Land Company (NYSE:DLP) (“D&PL”), a leading commercial breeder, producer and marketer of cotton planting seed, today announced financial results for the fourth quarter and year ended August 31, 2005.

Fourth Quarter Results

Net sales were $25.5 million in the 2005 fourth quarter, a slight increase over 2004 fourth quarter net sales of $24.6 million.  After charges of $0.01 per diluted share related to Pharmacia/Monsanto litigation expenses, net loss for the 2005 fourth quarter was $0.24 per diluted share, a decrease from last year’s fourth quarter net loss of $0.75 per diluted share.  In the 2004 fourth quarter, net loss was increased by $0.63 per diluted share as a result of the write-off of acquired in-process research and development (“IPR&D”) and related transaction expenses due to the acquisition of technology licenses from Syngenta, and $0.02 per diluted share for Pharmacia/Monsanto litigation expenses.

Annual Operating Results

The Company recorded net sales of $366.1 million for the fiscal 2005 year, compared to $312.8 million in the prior year.  The 17% increase in sales was primarily driven by higher per-unit technology fees, a shift in sales to higher-value stacked trait units, and an increase in unit sales.  Unit sales of stacked trait products in the U.S. increased more than 13% over the prior year.  In addition, sales of the Company’s top products, DP 555 BG/RR and DP 444 BG/RR, continued to increase and were the two most widely planted cotton varieties in the U.S. in 2005 according to the USDA.  International revenues also increased, primarily due to higher unit sales and prices in Australia, Brazil, and Turkey, and stronger export sales to Greece, Spain, and Mexico.  Sales at the Company’s two joint ventures in China declined, principally due to strong competition from local varieties and reduced cotton plantings. 

After charges of $0.07 per diluted share related to Pharmacia/Monsanto litigation expenses, net income for 2005 increased to $1.08 per diluted share, compared to net income of $0.13 per diluted share for 2004.  For 2004, net income included a reduction of $0.61 per diluted share related to the write-off of acquired IPR&D and related Syngenta transaction expenses, and $0.18 per diluted share for Pharmacia/Monsanto litigation expenses. 

Fiscal year 2005 operating expenses increased over 2004 operating expenses, excluding the 2004 fiscal year IPR&D charge.  This increase was primarily the result of higher research and development expenses related to developing products with new technologies, greater compensation and benefits costs, and higher professional fees.

Tom Jagodinski, President and Chief Executive Officer, said,  “Fiscal 2005 was a strong year for D&PL, and we are pleased to have delivered the highest revenues and operating results in the Company’s 90-year history. We are proud of our strong product portfolio that again led the U.S. in cottonseed sales, as two varieties alone captured almost one-third of the acres planted.  We are continuing to develop new products and technologies to bring additional value to our global farmer customers, and we anticipate releasing a new line-up of products in 2006 containing Monsanto’s second generation traits, Bollgard II® and Roundup Ready® Flex. Although the cotton harvest is not yet complete, early indications are that seed supplies for 2006 will be adequate to meet expected demand in spite of major areas of the U.S. Cotton Belt recently weathering the effects of three hurricanes.”

Stock Repurchase Plan

During fiscal year 2005, the Company purchased approximately 3.2 million shares of its common stock at an aggregate purchase price of $85.5 million.   Those repurchases totaled approximately 8% of the Company’s issued and outstanding stock as of the beginning of the 2005 fiscal year.  The Company initiated a new $50 million stock repurchase program in July, 2005.  The timing and amount of repurchases under the program will depend on market conditions, legal restrictions and other factors.

Quarterly Dividend

The Company also announced that its Board of Directors has declared a dividend of $0.15 per share for the first quarter of fiscal 2006.  The dividend will be paid on December 14, 2005 to shareholders of record on November 30, 2005.

2006 Earnings Outlook

The Company also announced that it will provide earnings guidance for fiscal year 2006 later this year, once the harvest is complete and 2006 U.S. cotton planting estimates have been made.

 Delta and Pine Land Company is a leading commercial breeder, producer and marketer of cotton planting seed.  Headquartered in Scott, Mississippi, with multiple offices in eight states and facilities in several foreign countries, D&PL also breeds, produces and markets soybean planting seed in the U.S.