Pioneer Hi-Bred International, Inc. (NYSE: PHB) today announced that operations for the first quarter of fiscal 1999, ended November 30, 1998, resulted in a loss of $74.8 million or $.31 per share on sales of $75.6 million. In the first quarter of 1998, the Company recorded a loss of $51 million, or $.24 per share, on sales of $79.4 million.

Because of the seasonality of the seed business, first quarter losses are typical for Pioneer and are not indicative of year-end results. A large portion of the Company's sales and profits are generated and recorded in the third quarter of the fiscal year, which ends May 31. First quarter sales generally represent less than 5 percent of the Company's annual sales. Operating results in the first quarter of fiscal 1999 were affected by lower sales of wheat in North America. First quarter results were also affected by planned increases in investments in product development, in genomics research, and in other targeted programs.

The net loss in the first quarter of fiscal 1998 was reduced by interest on the proceeds from the sale of shares to DuPont for $1.7 billion. Pioneer held the proceeds for 40 days during the first quarter of 1998, then subsequently used the proceeds to repurchase shares through a Dutch auction self-tender. Because of the preferred share transaction with DuPont, average shares outstanding in the first quarter of fiscal 1998 and the first quarter of 1999 are not comparable.

Charles S. Johnson, chairman, president and chief executive officer, said 1999 is shaping up to be another good year for Pioneer. "We are excited about our release of over 50 new corn hybrids for the 1999 planting season," he said. "We expect that 70 percent of our North American corn volume will be in hybrids released since 1997."

Pioneer has received a very positive response to our program to hold the price of most of our corn hybrids steady for the 1999 sales season and to the enhanced credit program for qualified customers, Johnson said. "Farmers want to do business with suppliers like Pioneer that are willing to step up and work with them through these challenging economic conditions," Johnson said. "This program, along with high returns per acre from our strong product performance, will be key in our effort to gain share in the North American market in 1999."

While the entire Pioneer lineup produced well in the 1998 harvest, Johnson said the Company is especially encouraged by the performance of the top corn hybrids and Pioneer(R) brand soybeans with the Roundup Ready(1) gene. The Pioneer corn hybrids expected to be the top 10 sellers for 1999 on average posted a yield advantage of nearly 8 bushels an acre over the average of the top 10 competitor hybrids in side-by-side comparisons conducted by the Company. Pioneer leader soybeans with the Roundup Ready gene on average held a 2 bushel-per-acre yield advantage over competitive Roundup Ready products.

Johnson also noted that farmers planting Pioneer corn hybrids in 1998 won 22 of 27 national awards in the National Corn Growers Association yield contests. Farmers planting Pioneer hybrids placed first in seven of the nine top categories: an all-time record.

This release contains forward-looking statements relating to the Company's operations that are based on management's current expectations, estimates, and projections. Words such as "expects", "anticipates", "plans", "intends", "projects", and similar expressions are used to identify such forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties, and assumptions that are difficult to predict. Some of the important factors that could cause actual results to vary significantly from management's expectations noted in these forward looking statements include the weather, government programs/approvals, commodity prices, changes in corn acreage, intellectual property positions, product performance, customer preferences, and industry consolidation.

Pioneer Hi-Bred International, Inc. is the world's leading supplier of agricultural genetics and is a leading integrator of agricultural technology. Headquartered in Des Moines, Iowa, Pioneer develops, produces, and markets a full line of seeds, microbial products, and services to farmers, grain processors, and other customers worldwide.

Pioneer Hi-Bred International, Inc.
(Unaudited, in Millions, Except for Per Share Amounts)

* The periods presented reflect a loss attributable to common shareholders. As a result, the effect of convertible preferred stock and stock options are not included in the calculation of diluted earnings per share as their effects are anti-dilutive.

(1) Registered trademark of, and used under license from, Monsanto Company.

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