Cargill Incorporated and Pioneer Hi-Bred International Inc. announced today that they have settled a lawsuit filed in October 1998 by Pioneer alleging that Cargill's corn seed business had misappropriated some Pioneer genetic material.

Under the settlement, Cargill has agreed to destroy improperly obtained material in its corn breeding program, not to engage in the practice of isolating parent seed from bags of Pioneer's hybrid seed corn -- a process known as "chasing selfs'' -- and to pay Pioneer $100 million for past damages and to resolve rights to use genetic material that was in dispute. With the settlement in place, Cargill will proceed with plans to sell its North American seed business.

After Pioneer filed the lawsuit, Cargill undertook an intensive internal investigation that uncovered
problems in its corn breeding program and cooperated fully with Pioneer in resolving the situation.

"We have worked through several complex issues and were gratified to reach a fair settlement for all the parties,'' said Jerry Chicoine, Pioneer president and chief executive officer. "We have made huge investments in seed research and development and take our intellectual property rights very seriously. Fortunately, Cargill also took those concerns seriously and to its credit did a thorough job of investigating and eradicating problem areas it found in its seed business. That determination to make things right made this settlement possible.''

"This has been a painful period for Cargill; we were shocked that our investigation into Pioneer's
allegations revealed that our seed business hadn't always lived up to our high ethical standards,'' said Cargill Executive Vice President Fritz Corrigan. "But we have learned from this experience, we have honored our commitment to make things right and we have emerged with a solidly respectful and stronger relationship with Pioneer and DuPont.''

While the investigation was underway, DuPont acquired Pioneer, which created an alleged conflict with a noncompete clause signed when DuPont sold its Intermountain Canola business to Cargill in 1994. As part of the discussions and to avoid litigation, Cargill has released DuPont from the noncompete commitment in return for some technology and other non-monetary considerations.

Pioneer Hi-Bred International, Inc., a DuPont business, is the world's leading developer and supplier of advanced plant genetics to farmers worldwide. With headquarters in Des Moines, Iowa, Pioneer develops, produces and markets a full line of top-quality seeds, forage and grain additives and provides services to customers in nearly 70 countries. DuPont is a science company, delivering science-based solutions that make a difference in people's lives in food and nutrition; health care; apparel; home and construction; electronics; and transportation.

Based in Minneapolis, Cargill is an international marketer, processor and distributor of agricultural, food, financial and industrial products and services with some 82,000 employees in 59 countries. 

Company news release
N2682