DuPont Agriculture & Nutrition today launched a plan to increase investment in plant genetics, biotechnology and other high-value growth opportunities, while further improving competitiveness in low-growth areas of its nutrition and crop protection businesses by reducing operating costs about USD 100 million a year.

Under the plan, DuPont will reinvest all of the USD 100 million savings into its seed business. These actions will help expand the company's competitive advantage in the seed market and increase the speed to market of seed products with next-generation biotech traits.

"We are aggressively adjusting our capital and resource allocation to the highest value growth opportunities for our customers and shareholders," said Erik Fyrwald, group vice president, DuPont Agriculture & Nutrition.

DuPont will consolidate manufacturing assets, leverage technology centers and refocus product marketing strategies in its nutrition and crop protection businesses.

These changes include the closing or streamlining of manufacturing units at about 10 sites and the reduction of approximately 1,500 positions globally, with most of the changes expected to be completed in 2007. Based on current estimates, DuPont expects to record a charge of about USD 200 million in the fourth quarter of 2006 for restructuring and asset impairments.

"These actions will accelerate the momentum that is building for our seed business," Erik said. "Our seed products are performing very well around the globe. Our competitive yield advantage improved in 2006 and that is going to mean significantly improved financial performance for the business in 2007."

Along with strong 2006 product performance for customers, independent research done this year found Herculex® XTRA insect control, which DuPont co-developed, to be superior to other insect control options on the market today. Looking ahead, North America seed orders for 2007 planting are very strong. The company expects sales of corn hybrids with "triple stacks" to be 10 times higher than 2006, significantly increasing revenue per acre captured by the business.

In Latin America, total Agriculture & Nutrition sales exceeded the USD 1 billion mark for the first time in 2006 on the strength of gains in corn, soybean, crop protection and soy protein products in Brazil and elsewhere. Excellent seed product performance and new crop protection product launches like picoxystrobin are driving growth in Brazil despite a difficult agricultural economy. Higher sales there will contribute to improved 2006 fourth quarter results compared to 2005. In addition, seed sales outside North America also passed the USD 1 billion milestone for the first time in 2006.

DuPont also is on track to deliver Optimum™ GAT™ herbicide resistant trait, which will give growers a new choice in glyphosate-tolerance soybean seed that maximizes yield potential, improves crop safety and expands weed control options, including for broader use of DuPont's sulfonylurea herbicides.

Other growth opportunity areas in the Agriculture & Nutrition plan include:

• Increased sales and marketing resources for the seed business.

• Investments in safer crop protection products by delivering our research pipeline products, including the planned 2008 introduction of Rynaxypyr™, a next generation ultra-low toxicity insecticide.

• Growth for The Solae Company's SoleCina™ which enables food processors to convert a proprietary blend of vegetable and meat protein into a nutritious finished product.

• Launch of Crystalon™ vertical form fill and seal liquid packaging technology.

• Continued investment in the markets of Brazil, Eastern Europe/Russia, India and China for all businesses.
  Driving growth in its portfolio of leading biofuel technologies.

"While we are excited about the opportunities that lie ahead, we recognize that this will be a difficult time for employees," Erik said. "We are committed to assisting those affected by these changes in their transition to other opportunities within or outside of DuPont."

In cases where redeployment is not possible, employees will receive assistance in accordance with local country and legal entity practices. More details of the plan will be available at a later date.

The actions announced today are part of the resource and capital deployment initiatives targeted to increase the company's return on invested capital.