Officials of Cargill and Pioneer Hi-Bred International, Inc. reported today that an investigation into Pioneer's allegations against Cargill's seed business has uncovered some problem areas, and the two companies are working to resolve the situation.

In a lawsuit filed Oct. 28, Pioneer charged that Cargill had wrongly obtained some Pioneer genetic material for use in its own seed research and development program. Cargill's investigation into the allegations uncovered some problems in the company's breeding program.

"As soon as we discovered the problem areas, we took immediate steps to notify Pioneer and to rectify the situation,'' said Fritz Corrigan, president of Cargill's Agriculture and Biosciences Group. "We took these allegations very seriously because that kind of behavior is in direct violation of our business practices and ethical guidelines. We have moved aggressively to correct the problems and make amends with Pioneer.''

"We respect Cargill's prompt actions and its willingness to come forward and work with us to resolve the situation,'' said Jerry Chicoine, Pioneer executive vice president and chief operating officer. "We're a leader in the seed industry with a $1 billion plus investment in research over the past decade, and it is essential that our intellectual property be protected.''

Pioneer is the world's leading supplier of agricultural genetics and a leading integrator of agricultural technology. Pioneer develops, produces and markets a full line of seeds, microbial products and services to farmers, grain processors and other customers worldwide.

Cargill is an international marketer, processor and distributor of agricultural, food financial and industrial products with more than 80,000 employees in more than 1,000 locations in 65 countries and with business activities in 130 more.

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