Oxnard, California
July 26,  2001

- Operating expenses decrease 12%
- EBITDA, excluding non-recurring charges, increases 3.7 times
- Bank debt reduced by $11.5 million

Seminis, Inc. (Nasdaq: SMNS) the world's leading developer, producer and marketer of vegetable and fruit seeds, today announced results for the three-month period ended June 29, 2001.

Alfonso Romo, Chairman and CEO of Seminis, commented: "I am pleased to report our financial results for the third quarter 2001. Our operating numbers demonstrate that we are reaching a healthy and profitable position as a result of our internal re-engineering and our ongoing Global Optimization Plan. The cash flow generated during this quarter not only proves that the Company is self-sufficient, but allowed us to reduce our liabilities, including a of $11.5 million reduction in bank debt."

NET SALES

Net sales for the quarter were $106.4 million compared to $114.4 million last year. Excluding $5.7
million of sales in the third quarter 2000 from discontinued operations (divestitures of non-core
businesses) and a $5.2 million negative currency impact against the U.S. dollar, sales for the quarter increased 3 percent, from $108.6 million to $111.4 million.

GROSS MARGINS

As announced on June 1st, and as a further initiative related to Seminis' Global Optimization Plan, the Company recorded a non-cash inventory write-off of $53.9 million. Excluding the write-offs recorded in this year's and last year's third quarters, gross margin improved to 60.2 percent from 53.7 percent. 

Eugenio Najera said: "The initiatives in place will allow us to properly control the inventory levels of the Company's inventory levels. Going forward, we expect to be within industry write-off standards."

OPERATING EXPENSES

Total operating expenses for the period, including restructuring charges of $13.8 million in connection with the consolidation of worldwide facilities and headcount reduction, reached $74.8 million. This represents a decline in operating expenses of $8.9 million, or 10.6 percent, from the same quarter last year. Excluding the restructuring charges recorded in both periods, operating expenses for the quarter declined year-over-year by $8.5 million, or 12 percent, to $61 million. The actions taken to optimize costs and expenses have been executed with careful consideration of the Company's medium and long term growth.

OPERATING INCOME

Excluding non-recurring restructuring charges and non-cash charges for inventory write-offs in both
periods, Seminis recorded operating income of $3.2 million for the quarter, compared with a loss of $8 million for the same period last year. Including these charges, the Company posted a loss from
operations of $64.5 million compared with a loss of $28.9 million the same quarter last year.

Earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter, excluding
inventory write-offs, restructuring and non-recurring charges, were $14.5 million, compared with $3.9 million for the same quarter last year, an increase of 3.7 times.

Eugenio Najera, President and COO of Seminis, commented, "In line with the second stage of the
Global Optimization Plan, we decided to accrue $12 million for restructuring costs related to its
continued consolidation of facilities worldwide and headcount reduction that will ultimately bring us
annual savings of approximately $9 million. Also, as part of our Plan, we recorded a non-cash charge of $53.9 million for inventory write-offs to rationalize the Company's product portfolio and to comply with more stringent seed quality standards. These actions will allow us to continue showing improvements in our cash generating capabilities and operating numbers as we move forward."

NET INCOME

The Company posted a net loss of $64.5 million for the quarter, compared with a loss of $19.2 million for the same period last year. Excluding non-recurring charges, non-cash inventory write-offs and other non-recurring income, net loss was $8.2 million compared to a loss of $15.2 million last year.

Eugenio Najera, President and COO, said "Going forward, our bottom line will continue to benefit from more efficient operations and a healthier financial structure. Accounts receivable days outstanding in our seed business have been reduced by 24 days compared with the same period last year. Our seed purchase plans are in line with our sales and turnover objectives for the next two years, resulting in a properly managed inventory level. Additionally, the Company is no longer in a liquidity crunch, and has been able to reduce its accounts payable by $8.7 million during this quarter. Also, during the quarter, the Company was able to reduce its outstanding bank debt by $11.5 million."

BANK DEBT

As announced on June 1, 2001, after its lending banks agreed to the Company's business plan,
Seminis obtained a permanent amendment to the terms and conditions under its outstanding $310
million syndicated credit facility.

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

Alfonso Romo, concluded: "So far, the Company has exceeded the requirements set forth in the
business plan presented to our lending banks. It is encouraging to see the efforts of all Seminis
employees being materialized into positive results both at the bottom line and in terms of our cash flow generation."

About Seminis

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, 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), a Mexico-based leading conglomerate.

Consolidated Statements of Operations

Company news release
N3684