Pioneer Hi-Bred International, Inc. announced today that operations for the first three quarters of fiscal 1999, ending May 31, 1999, resulted in after-tax earnings of $289 million, or $1.20 per diluted share, on sales of $1.7 billion. In the first three quarters of 1998 Pioneer reported after-tax earnings of $319 million, or $1.26 per diluted share on sales of $1.7 billion.

Pioneer and DuPont continue to move forward in their proposed merger agreement in which DuPont would acquire the 80 percent of Pioneer it does not currently own. The proposed merger, announced in March 1999, has been cleared by antitrust authorities in the United States and the European Commission and is expected to close late this summer.

"Our proposed merger with DuPont is progressing well and we are very excited about the tremendous potential it offers to our customers around the world,'' said Charles S. Johnson, Pioneer chairman, president, and chief executive officer.

Pioneer is on track for a positive year in 1999, considering the significant downturn in the world
agricultural economy, Johnson said. "Our preliminary estimates show Pioneer maintained our 42
percent share in a very competitive North American hybrid seed corn market. We once again showed record results in our industry-leading soybean operations, gaining nearly three percentage points in the North American soybean market,'' he said.

"Demand for our lineup of new products has been strong. We are especially encouraged by customer response to the 60 new corn hybrids that we released for 1999,'' Johnson said. "Customers have also reacted very favorably to our enhanced financing program. They appreciate that Pioneer, as the industry leader, is willing to work with them through these challenging economic conditions.''

Pioneer investments in research and product development, in information management systems and in intellectual property protection rose during the first three quarters, as planned. Those investments, along with the increased costs of the customer finance program, account for virtually all of the decrease in the Company's operating income for the first three quarters.

"Investments like these are vital to our ability to continue developing outstanding products for our
customers and to protect our investments,'' Johnson said.

Pioneer results for the first three quarters were affected by reduced corn plantings in North America and in several other markets around the world, which reduced the overall market for hybrid corn seed. Recent government estimates showed that farmers in North America planted 80.9 million acres of corn in 1999, down more than 3 percent from plantings in 1998. Pioneer North American net corn price and margins were slightly higher than a year earlier.

Along with reduced corn plantings, operations outside of North America were negatively impacted by a relatively strong U.S. dollar and higher provision for inventory reserves.

The Company benefited from reduced income tax expense resulting from various tax settlements that occurred during the current quarter.

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

* Because of the preferred share transaction with DuPont, average shares outstanding for the nine months ended May 31, 1999 and 1998 are not comparable.

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.

Company news release
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