NEWS

logo.gif (1594 bytes)

NEWS

Aventis decides on 100 million euros (pre-tax) accrual for StarLink - Full-year earnings outlook remains unchanged

Strasbourg, France
December 17, 2000

In a move towards resolving the StarLink situation, Aventis CropScience has decided to accrue 100 million euros (pre tax) during the fourth quarter to cover certain recall related costs and
liability costs.

"As we are in the midst of discussing this issue with our licensees who sold StarLink seed and insurance providers, this is currently the best estimate that we can provide", said Patrick Langlois, Chief Financial Officer of Aventis.  "Fortunately, we have significant insurance coverage towards resolving this issue. This accrual will be treated as an exceptional item, and does not alter the earnings outlook of Aventis on a full year basis", concluded Langlois.

StarLink is a technology developed by Aventis CropScience, which provides insect protection for hybrid corn through the use of Cry9C protein. Seed producers insert the protein into their corn with the assistance of biotechnology. 

Starlink corn has been approved in the U.S. only for use in animal feed and industrial, non-food uses. Evidence of Cry9C has been found in certain food products. This has led to corrective measures by Aventis CropScience.

Aventis (NYSE: AVE), a world leader in pharmaceuticals and agriculture, is dedicated to improving life through the discovery and development of innovative products in the fields of prescription drugs, vaccines, therapeutic proteins, crop production and protection, animal health and nutrition. Aventis announced in November 2000 that it intends to focus on pharmaceuticals and plans to divest its activities in agriculture. With its global corporate headquarters in Strasbourg, France, Aventis employs around 95,000 people in more than 120 countries and recorded pro forma sales in 1999 of 20.5 billion euros. Aventis was launched in December 1999 through the merger of Hoechst AG of Germany and Rhône-Poulenc SA of France. 

Company news release
N3199

.

Copyright © 2000 SeedQuest - All rights reserved