- Increased Cotton Acreage and Market Share Drives Record Quarterly Revenues of $287 Million
- Generates Third Quarter EPS of $1.28, after a $0.12 per share IPR&D Charge
- Second Highest Quarterly Net Income Reported

Delta and Pine Land Company (NYSE:DLP) (“D&PL” or the “Company”), a leading commercial breeder, producer and marketer of cotton planting seed, today announced results for the third quarter and nine-month period ended May 31, 2006.

Third Quarter Results

Net income for the 2006 third quarter was $1.28 per diluted share, compared to last year’s third quarter net income of $0.91 per diluted share. Third quarter earnings were reduced by charges of $0.02 per diluted share related to Pharmacia/Monsanto litigation expenses and $0.12 per diluted share related to the write-off of acquired in-process research and development (“IPR&D”) and related transaction costs from the previously announced acquisition of Syngenta’s global cotton seed assets. The net income reported by the Company for the third quarter represents the second highest net income ever reported for a single quarter, behind only the second
quarter of 2000, which included pre-tax income of $71 million from an unusual item. In the prior year third quarter, Pharmacia/Monsanto litigation expenses were $0.01 per diluted share. The recently announced strategic licensing agreements for cotton, soybean and other technologies with a DuPont subsidiary, Pioneer Hi-Bred International, Inc. will be accounted for in the fourth quarter.

Revenues of $286.6 million reported for the 2006 third quarter, compared to $203.3 million for prior year quarter, are the highest ever for the Company in a single quarter. Revenues were impacted by: (1) a significant increase in units sold, due to an increase in cotton acreage and an increase in market share in our key markets in the states east of Texas; (2) higher technology fees per unit; (3) a shift in our sales mix to more premium-priced, stacked-trait varieties; and (4) premium seed treatment revenues, partially offset by higher sales allowances. International revenues were slightly higher than the prior-year quarter, due to a shift in sales into the third
quarter in 2006 in both Mexico and Spain, and higher unit sales in Turkey. Earnings were also impacted in the third quarter of 2006 by increased spending on research and development activities related to new technologies, higher professional fees related to litigation (other than the Pharmacia/Monsanto lawsuit), and share-based compensation costs.

Nine-Month Results

After charges of $0.05 per diluted share related to Pharmacia/Monsanto litigation expenses and $0.12 related to the aforementioned IPR&D write-off, net income for the 2006 nine-month period was $1.43 per diluted share, compared to net income of $1.28 per diluted share for the same period last year. Net income in the 2005 nine-month period included a reduction of $0.06 per diluted share for Pharmacia/Monsanto litigation expenses.

Record revenues for the 2006 nine-month period were $411.4 million, compared to $340.6 million in the prior year. Revenues were impacted by an increase in cotton acreage and the aforementioned market share factors. International sales were lower for the nine month period due to acreage reductions, government regulations and exchange rates in certain markets. Earnings were also impacted by increased spending on research and development activities related to new technologies, higher professional fees related to litigation (other than the Pharmacia/Monsanto lawsuit), and share-based compensation costs.

Tom Jagodinski, President and Chief Executive Officer, said, “Our quarter and year–todate results were strong, resulting largely from the continued penetration and performance of our cotton germplasm and sales of premium seed treatments. We are continuing to execute our strategy of in-licensing new technologies from multiple partners to offer farmers more technology choices. We are pleased to have completed the acquisition of Syngenta’s cotton seed assets in the quarter, as well as our recent strategic licensing agreement with DuPont. Further, preliminary indications demonstrate an increase in cotton acreage and we have expanded our market share in the high value markets east of Texas.”

Share Repurchase Program

From September 1, 2005 through June 30, 2006, D&PL repurchased 808,494 shares at an aggregate purchase price of approximately $19.7 million under the June 30, 2005 share repurchase program. The Company expects to continue repurchasing shares under this plan over time and through a variety of methods, which generally will include open market purchases. The timing and amount of repurchases under this program will depend on market conditions, legal restrictions and other factors.

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.

Full report in PDF format: http://www.deltaandpine.com/press_investors/Investor_Relations_7-6-2006-84147.pdf