Seminis, Inc., announced today that it would not achieve its expected sales for the fourth quarter of fiscal year 2000. The new sales estimate for the quarter is approximately 24% lower than the same period last year. The decrease in sales is mainly due to unfavorable market conditions in the NAFTA region, non-core sales of divested assets and the negative impact of the devaluation of the Euro in relation to the dollar. In addition, Seminis expects a non-cash charge of $36 million composed of $29 million in inventory excess reserves as a result of the lower sales and $7 million in inventory write-offs, primarily related with non-core operations in Europe.

As a result of the lower than expected sales and the additional reserves, the company will not be in compliance with certain financial covenants under its loan agreement starting as of September 30, 2000. The company is negotiating a waiver related with September 30th and is beginning negotiations with the banks to formally amend and modify the financial covenants for future periods.

Since June 30th Seminis' parent company, Savia, has been supporting the cash needs of the company through advances of $47 million. In order for Seminis to satisfy its operational cash requirements it will need significant additional cash and also, will require solutions to strengthen its financial structure, which include capital contributions from Savia and alternatives involving the participation of new capital in the company. Seminis expects to report its preliminary year-end results by the end of the month. As a result of the lower sales and non-cash charges, the company will report a significantly higher loss as compared to last fiscal year.

Seminis (Nasdaq: SMNS) is the largest developer, producer and marketer of vegetable seeds in the world. The company uses seeds as the delivery vehicle for innovative agricultural technology. Its products are designed to reduce the need for agricultural chemicals, increase crop yield, reduce spoilage, offer longer shelf life, create better tasting foods and foods with better nutritional content. Seminis has established a worldwide presence and global distribution network that spans 120 countries with 70 research stations in 19 countries and production sites in 32 countries. Seminis is a majority owned subsidiary of Savia (NYSE: VAI), a Mexico-based conglomerate with leadership positions in financial services, packaging and fresh foods.

Company news release
N3070