Oxnard, California
June 1,  2001

Seminis, Inc. (Nasdaq: SMNS), the world's leading developer, producer and marketer of vegetable and fruit seeds, announced today that its lending banks are in agreement with the Company's business plan, and that it has signed a permanent amendment to the terms and conditions under its outstanding $310 million syndicated credit facility. 

Under the amended agreement, the maturity date has been established at December 2002, with principal payments of $35 million due in 2001 and $49 million in 2002. The Company expects to comply with these principal payments through improved operating cash flows and the sale of non-strategic assets. 

Eugenio Najera, President and COO of Seminis, said, "Today's amendment reflects the confidence of our banks in our business plan and strategy. Actions taken over the past six months have enabled Seminis to become self- sufficient. As such, the Company has internal capabilities to generate the required cash flow to meet its obligations. This agreement allows us to fully focus on the implementation of our optimization plan." 

The business plan agreed upon by the lending banks includes several initiatives related to Seminis' Global Optimization Plan, aimed at improving the Company's working capital and operating capabilities. Seminis expects to record a non-cash charge for the third quarter of 2001 of approximately $57 million, related to inventory write-offs, in order to rationalize the Company's product portfolio and to comply with more stringent seed quality standards. This measure allows Seminis to provide higher quality, value-added products to its customers. 

As originally announced in the business plan, Seminis will record a charge, for the same period, of approximately $12 million in restructuring costs, related to consolidation of facilities worldwide and headcount reduction. The Company expects that this initiative will result in annual savings of approximately $9 million. 

Mr. Najera concluded, "Significant steps such as these, confirm that we are committed to returning Seminis to profitability by integrating formerly diverse operating units and rationalizing our operations." 

About Seminis 

Seminis, Inc. (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, and create better tasting foods and foods with better nutritional content. Seminis has established a worldwide presence and global distribution network that spans 120 countries. Seminis is a majority owned subsidiary of Savia (NYSE: VAI). 

Company news release
N3555