Dow AgroSciences LLC, a subsidiary of The Dow Chemical Company (NYSE: DOW), and Monsanto Company (NYSE: MON) announced today a global business agreement that establishes cooperative arrangements that will give farmers new technology options and more choice in the products to meet their needs.

"At Dow AgroSciences, we're focused on bringing new solutions like Herculex™ and WideStrike™ insect resistant traits to our customers, and this agreement is another step in expediting innovation," said Jerome Peribere, president and chief executive officer, Dow AgroSciences. "We're pleased to have reached a settlement that will bring new product options to the market and have a long-lasting impact for our customers."

Hugh Grant, Monsanto's president and chief executive officer, added, "The key to this agreement was that our companies were able to focus on our farmer customers and deliver an outcome that will offer them tremendous benefits and choice in the seasons ahead. This agreement will provide farmers with greater access to new technology offerings and trait combinations with the industry's leading weed control system in Roundup Ready. This agreement is expected to be another important contributor to the growth of Monsanto's Roundup Ready Corn 2 technology in the coming seasons."

The companies reached an agreement that creates new and growing business opportunities for both companies. Under this agreement:

• Dow and Monsanto cross licensed intellectual property and product licenses in corn and soybeans on a non-exclusive basis. Dow received a commercial license to certain Monsanto seed stock and biotechnology traits for both corn and soybeans. In addition, Dow receives royalty-bearing rights to create and license finished hybrids, which combine Monsanto's Roundup Ready Corn 2 technology with Dow's Herculex I and Herculex XTRA technologies, to licensees of Monsanto's Roundup Ready Corn 2.
  
   
• Dow and Monsanto also established cross licenses of cotton technologies on a non-exclusive basis. Dow's license includes Monsanto's patent estate for cotton transformation. Monsanto's license includes the patent estate for glyphosate tolerant cotton of Mycogen Plant Sciences, Inc., an affiliate of Dow AgroSciences. Dow receives the intellectual property licenses for the commercialization of its WideStrike insect protection technology. Monsanto receives the intellectual property licenses related to its Bollgard, Bollgard II, Roundup Ready and Roundup Ready Flex technologies. Monsanto also receives a commercial license for WideStrike technology in South America and Mexico.
  
   
• Dow and Monsanto also established non-exclusive cross licenses of certain enabling technologies. Dow's license includes Monsanto's patent estate for synthetic Bt technology. Monsanto's license includes the patent estate for Bt in plants owned by Mycogen.
  
   
• The companies agreed to settle outstanding legal disputes. Mycogen has agreed to withdraw its appeal related to the U.S. Patent and Trademark Office's determination that Monsanto scientists were the first to invent synthetic Bt genes. Monsanto agreed to withdraw its appeal that Mycogen scientists were first to invent the Cry1F gene.

PowerPoint slides related to today's announcement may be accessed by visiting Monsanto Company's Web site at www.monsanto.com and clicking on "Investor Information," or Dow AgroSciences' Web site at www.dowagro.com. Additional specific details of the agreement were not disclosed.

Dow AgroSciences LLC, based in Indianapolis, Indiana, USA, is a global leader in providing pest management and biotechnology products that improve the quality and quantity of the earth's food supply and contribute to the health and quality of life of the world's growing population. Dow AgroSciences has approximately 5,500 people in more than 50 countries dedicated to its business, and has worldwide sales of US $3.4 billion. Dow AgroSciences is a wholly owned subsidiary of The Dow Chemical Company.

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

Herculex™ and WideStrike™ are trademarks of Dow AgroSciences LLC. Herculex insect protection technology by Dow AgroSciences and Pioneer Hi-Bred.
Roundup Ready, Bollgard and Bollgard II are registered trademarks of Monsanto Technology, LLC.