Delta and Pine Land Company, a commercial breeder, producer and marketer of cotton planting seed, today announced results for the second quarter ended February 28, 1999-

The Company reported net income before unusual charges of $6,197,000 or $0.15 per diluted share for the quarter ended February 28, 1999 compared to net income of $9,757,000 or $0.24 per diluted share in the comparable period in fiscal 1998. Net sales for the quarter ended February 28, 1999 were $72,800,000 compared to $77,245,000 in the comparable period in fiscal 1998. Net sales and licensing fees reflect an increase in domestic cotton acreage expected to be planted in 1999 over 1998 resulting in a 10% increase in gross units shipped in the quarter ended February 28, 1999 over the units shipped in the comparable 1998 quarter. However, net sales and licensing fees also reflect a reserve established for estimated seed returns in the second quarter of 1999 at a level twice that recorded in the comparable quarter in 1998 due to the present uncertainty of farmers' ability to obtain financing and the related impact on farmers' planting intentions, as well as the irnpact that commodity prices and weather may have on the ultimate number of acres that will be planted.

Net income per share for the quarter ended February 29, 1999 after unusual charges was $2,382,000 or $0.06 per diluted share compared to net income of $9,757,000 or $0.24 per diluted share in the comparable period in fiscal 1998. The number of shares used in the determination of diluted earnings per share in 1999 was 40,819,000 compared to 40,397,000 for the comparable period in fiscal 1998.

The Company reported net income before unusual charges of $236,000 or $0.01 per diluted share for the six months ended February 28, 1999 compared to $5,122,000 or $0.13 per diluted share for the comparable period in fiscal 1998. Net sales for the six months ended February 28, 1999 were $79,996, 000 compared to $82,585,000 in the same period in fiscal 1998 and were affected by establishing a reserve for seed returns in 1999 at a level that was twice the level recorded in 1998, the effect of which was partially offset by increased sales by the Company's joint venture in China and its Australia subsidiary. As planned, operating expenses (before unusual charges) increased $2,900,000 due primarily to higher research and development and general and administrative costs attributable to both domestic and foreign operations. The number of shares used in the determination of diluted earnings per share for the six months ended February 28, 1999 was 38,397,000 compared to 40,259,000 in the comparable period of fiscal 1998.

Sales are recorded (net of anticipated returns) when seed is shipped, primarily in the Company's second and third quarters. Similarly, Bollgard and Roundup Ready gene technology license fees are recorded based on acres that are expected to be planted with such seed as it is shipped. In the fourth quarter, sales incentives, seed returns, actual licensed acres of seed containing the Bollgard and Roundup Ready gene technology and related items are finalized and adjustments made for such items which are estimated in the first three quarters. It is the nature of agricultural seed businesses that supply, demand and their timing are affected by many variables, including weather, commodity prices, farmer financing, and govenmental policy. Due to the seasonal nature of the seed business, the Company typically incurs losses in its first and fourth quarters. Additional risks and uncertainties with respect to forward looking statements are described in management's discussion and analysis contained in the Company's Form 10-K for the year ended August 31, 1998 as well as the Company's latest filings with the Securities and Exchange Commission.

Delta and Pine Land Company is a commercial breeder, producer and marketer of cotton planting seed. Headquartered in Scott, Mississippi, with multiple offices in seven states and facilities in several foreign countries, DPL also breeds, produces and markets soybean planting seed. Delta and Pine Land Company common stock trades on the.NYSE unider the symbol "DLP".

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