Pioneer Hi-Bred International, Inc. today announced that operations for the first half of fiscal 1999, ended February 28, 1999, resulted in a loss of $72 million, or $.30 per share on sales of $376 million. In the first half of 1998, the Company recorded a loss attributable to common shareholders of $56 million, or $.25 per share, on sales of $381 million.

Because of the seasonality of the seed business, first half losses are typical for Pioneer and are not an indicator 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.

On March 15, 1999 Pioneer and DuPont announced that they have signed a definitive agreement for a stock and cash merger that, subject to shareholder and regulatory approval, would result in DuPont's complete ownership of Pioneer. DuPont currently has a 20 percent equity interest in Pioneer.

"With this proposed merger we are creating the most powerful agricultural science force in the world," said Charles S. Johnson, Pioneer chairman, president, and chief executive officer. "Bringing the talents and resources of our two companies more closely together will ensure we can quickly respond to the changing marketplace and capitalize on the vast opportunities opening to us.

"This is the right business course for Pioneer, DuPont, our customers, our employees, and our shareholders," Johnson said. "By merging with DuPont, the Pioneer presence in the marketplace will continue to strengthen."

For the first half of 1999, delayed deliveries of hybrid seed corn in the southern United States were offset by earlier deliveries of hybrid seed corn in Europe. Investments in research and product development rose during the first half of 1999, as planned.

While the spring planting season is still a few weeks away in most of the United States and Europe, Johnson said Pioneer is on track for another excellent year in 1999. "We expect market share gains in North America and other key seed markets around the world," he said. "We expect to realize higher margins for our hybrid seed corn sales in North America. We also expect
higher sales and margins in soybeans."

Pioneer has received a very positive customer response to its 1999 North American sales program, which held price of most corn hybrids steady and enhanced the existing deferred payment program for qualified customers.

"We are very excited about our release of 60 new corn hybrids for the 1999 planting season," he said. "We expect that nearly two-thirds of the Pioneer North American corn volume will be in hybrids released since 1997, as we continue our unprecedented release of high-performance products."

To help meet the strong demand for these new products, Pioneer is producing hybrid seed corn at its winter production facilities in South America. Shipments of the South American seed crop have begun to arrive in North America ahead of schedule, and the quality of the seed appears to be excellent, Johnson said.

In addition, Johnson noted that Pioneer continues to make positive progress on lawsuits filed in the fall of 1998 alleging that competitors, Cargill Inc., DeKalb Genetics Corp., and Asgrow Seed Company L.L.C., misappropriated Pioneer genetics.

"Our goal in these legal actions is to stop a practice that puts farmers' productivity at risk," Johnson said. "Germplasm is the foundation of all efforts to develop advanced plant genetics. Pioneer has spent decades and billions of dollars developing the world's largest plant genetics library. We will vigorously protect it, as we always have."

Pioneer Hi-Bred International, Inc.
(Unaudited, in millions, except for per share amounts)

* All periods presented, with the exception of the Three Months Ended February 28, 1999, 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 for the periods with losses as their effects are anti-dilutive.

** Because of the preferred share transaction with DuPont, average shares outstanding in the first half of fiscal 1998 and the first half of fiscal 1999 are not comparable.

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