• Sales up 18 percent at $5.4 billion, +14 percent CER(1)
• New product sales up 20 percent CER to $572 million
• EBITDA(2) up 16 percent at $1.6 billion, +13 percent CER
• Earnings per share(3) up 25 percent to $9.54
• 2005 to date: $425 million returned to shareholders

Financial Highlights (unaudited)

(1) For a definition of constant exchange rates, see Appendix A of the full version on www.syngenta.com
(2) EBITDA before restructuring and impairment is a non-GAAP measure in regular use as a measure of operating performance, see Appendix C of the full version on www.syngenta.com.
(3) EPS on a fully-diluted basis, excluding restructuring, impairment and discontinued operations, and before a one-off tax credit in 2004.
(4) The amounts including restructuring and impairment are reported in accordance with International Financial Reporting Standards (IFRS). The impact of restructuring, impairment and discontinued operations in 2005 is $64m on net income (2004: $172m).
(5) Adjusted in accordance with recent changes in accounting standards.
(6) Net income to shareholders of Syngenta AG.
(7) Net income before one-off tax credit.

Michael Pragnell, Chief Executive Officer, said:

“Following an outstanding 2004, Syngenta delivered strong growth in the first half of 2005 in both Crop Protection and Seeds, with an exceptional performance across NAFTA. Our marketing teams took full advantage of a strong US corn market, exploiting our leading crop protection position and expanded seeds platform; Garst and Golden Harvest made an impressive first season contribution. New Crop Protection products maintained their record of outstanding growth. Professional Products once again generated excellent results driven by double digit growth in Seed Treatment. Top line growth and continued cost discipline have sustained business quality and contributed to a significant increase in earnings.”

Sales at constant exchange rates (CER) increased by 14 percent, five percent excluding the Seeds acquisitions, benefiting from good underlying volume growth and firm pricing. Crop Protection sales rose by four percent; Seeds sales grew by 57 percent, 11 percent excluding acquisitions.

EBITDA improved by 13 percent (CER) to $1.6 billion benefiting from the growth in sales and the growing contribution from Seeds, as well as operational efficiency savings which largely offset an impact from higher raw material costs and expenditure increases in future growth.

Earnings per share, excluding restructuring and impairment, and the one-off tax credit in 2004, were up 25 percent to $9.54; excluding the adjustment for IFRS3, earnings per share were up 21 percent. After charges for restructuring and impairment earnings per share were $8.92 (2004: $7.34).

Currency: Sales were positively impacted by four percent due to the weakness of the US dollar, notably against the Euro. The net benefit to EBITDA was three percent.

Crop Protection: NAFTA delivered an excellent broad-based performance with growth across the region. Asia-Pacific increased sales in several markets, notably Japan. Sales in Europe were weaker largely attributable to the cold early season followed by drought in southern Europe, notably Spain; growth in eastern Europe was again strong. Compared with an exceptional 2004 in Latin America, the strengthening Brazilian currency was the major contributor to a deceleration in demand by growers for export. New products continued their outstanding growth record with sales up 20 percent (CER) to $572 million. EBITDA increased by five percent (CER) to $1318 million.

Seeds: Sales increased in all regions reflecting strong underlying demand for Field Crops as well as benefiting from the successful integration of Garst and Golden Harvest acquired in the second half of 2004. In Vegetables demand for fresh produce continued to grow and sales recovered somewhat in the second quarter after a slow start due to poor weather in southern Europe. Sales in Flowers were down due to caution following market overstocking in 2004. EBITDA increased by 54 percent (CER) to $300 million.

R & D Pipeline: Eight active ingredients are currently progressing through early and late stage development in Crop Protection with projected launches between 2006 and 2012. The first of these is AXIAL®, a new cereal herbicide with outstanding field performance and blockbuster potential; it is expected to launch in 2006. AVICTA®, a novel Seed Treatment for nematode control, has also produced exciting field results and a full launch is planned on cotton in 2006. A new fungicide for vegetables and vines, 446, is progressing towards a 2007 launch. In Field Crop Seeds, three corn input traits are at an advanced stage of development: glyphosate tolerance, corn rootworm and corn borer insect control, as single traits and in combination; US launches are targeted for completion by 2008.

Operational efficiency: Total restructuring and impairment charges during the period were $92 million (cash: $62 million; non-cash: $30 million) relating to the program to streamline global operations, announced in February 2004. Restructuring costs are expected to be around $850 million over five years including non-cash charges of $350 million. Peak savings of $300 million are expected by the end of 2008; savings in the first half were $59 million.

Cash flow and balance sheet: Cash flow in the first half of the year was affected by timing increases in working capital reflecting the sales growth in US Crop Protection and selective extension to trading terms; the Seeds acquisitions; and the reversal of certain customer prepayments made at the end of 2004. The ratio of average trade working capital as a percentage of sales improved to 39 percent (2004: 40 percent). Fixed capital expenditure of $67 million was below depreciation of $129 million.

In April the company issued a €500 million, 4.125 percent Eurobond with 10 year maturity. It also made a public tender offer for its outstanding 5.5 percent Eurobond due in July 2006, of which 73 percent was redeemed. These transactions significantly lengthened the maturity of outstanding debt. At period end net debt was $1127 million (2004: $590 million) representing a gearing ratio of 20 percent (2004: 11 percent).

Taxation: The underlying tax rate for the period was 24 percent (2004: 25 percent). The tax rate is expected to remain in the mid to low twenties over the medium term.

Cash return to shareholders: The company continued its share repurchase program in the first half of 2005, repurchasing 2 million shares at an average price of CHF 128.4 amounting to $216 million; a total dividend of $209 million was paid on 22 July in the form of a nominal value reduction. The total amount returned to shareholders since the start of the program in May 2004 through dividends and share repurchase is $710 million. The 1.7 million shares repurchased in 2004 were cancelled on 22 July.

Outlook

Michael Pragnell, Chief Executive Officer, said:

“Determined execution of our strategy by our sales and marketing teams worldwide will enable us to sustain Syngenta’s strong performance. For the full year 2005, notwithstanding a slowing in Brazil, we remain committed to our target of high teens growth in earnings per share*. Looking further ahead, the numerous opportunities to capture growth across all our businesses, including new product launches, reinforce our confidence in the achievement of our target of high teens earnings growth in 2006. We remain on track to return more than $1 billion to shareholders over the period 2004 to 2006.”

Crop Protection
For a definition of constant exchange rates, see Appendix A of the full version on www.syngenta.com

Selective Herbicides: major brands CALLISTO® family, DUAL®/BICEP® MAGNUM, ENVOKE®, FUSILADE®MAX, TOPIK®

Sales of selective herbicides were driven by the CALLISTO® range with further successful launches in Europe and strong growth in the USA, despite further penetration of herbicide-tolerant technology. Growth in the CALLISTO® combination products, LUMAX® and LEXAR®, was particularly strong due to their excellent, broad-based weed control. There was a further decline in the sales of DUAL®/BICEP® MAGNUM. ENVOKE® continued to grow following its launch on cotton last year. Sales of TOPIK® grew strongly in NAFTA and eastern Europe, offsetting declines elsewhere.

Non-selective Herbicides: major brands GRAMOXONE®, TOUCHDOWN®

TOUCHDOWN® generated volume growth in the USA and Argentina, driven by the launch of new brands and marketing programs. GRAMOXONE® sales were weaker in southern Europe and parts of Asia, notably Australia, where dry weather led to lower demand.

Fungicides: major brands ACANTO®, AMISTAR®, BRAVO®, RIDOMIL GOLD®, SCORE®, TILT®, UNIX®

Fungicides registered significant, broad-based growth, particularly in the USA and the dynamic markets of eastern Europe. AMISTAR® sales grew 25 percent (CER) as its exceptional efficacy, in both single and combination forms, led to higher demand on a broad variety of crops. In the USA, the emergence of soybean rust led to some initial sales, offsetting lower demand in Brazil. Strong contributions came also from TILT® and SCORE®. In Europe BRAVO® continues to gain acceptance in programs to combat septoria resistance.

Insecticides: major brands ACTARA®, FORCE®, KARATE®, PROCLAIM®, VERTIMEC®

After a strong start to the year, insecticides declined in the second quarter due to lower insect infestation in Canada and western Europe. US sales of FORCE® were buoyant throughout the first half due to an increase in acres treated for corn rootworm. Sales of ACTARA® and PROCLAIM® continued to expand in Asia.

Professional Products: major brands CRUISER®, DIVIDEND®, HERITAGE®, ICON®, MAXIM®

The continued rapid expansion of Seed Treatment was complemented by sales growth in a number of other businesses. In Seed Treatment, CRUISER® was the main driver with further growth in the USA, following its launch on soybean, and in Europe. DYNASTY® was launched successfully in the US cotton market and will be complemented in 2006 by the launch of AVICTA® an innovative nematode control product.

In Europe, Africa and the Middle East there were strong performances in Germany, driven by the success of BRAVO® in cereals, particularly to combat septoria resistance and in eastern Europe where sales again showed double digit growth in these rapidly expanding markets. Elsewhere, sales were affected by unfavorable weather conditions, with a cold start to the season followed by drought in southern Europe, notably Spain.

In NAFTA buoyant grower demand in the USA resulted in strong volume growth across all product lines. Syngenta capitalized on its leading position in corn, led by the CALLISTO® range, including a very successful first season for the combination product LEXAR®. Strong growth in fungicide sales was driven by the AMISTAR® range which capitalized on high disease pressure in a number of crops including fruit, vegetables, rice and wheat; the emergence of soybean rust in some southern states also contributed to growth.

Latin America: In Brazil, the most important market, demand was adversely affected by a number of factors: commodity crop price movement; drought in the south; and, most importantly, the appreciation of the Real against the US dollar. Sales in Argentina were significantly higher driven by strong growth in fungicides and in non-selective herbicides.

Asia Pacific: Successful growth initiatives in Japan, India, South Korea and Vietnam produced strong growth. Sales also grew strongly in China across a range of products. Australia and Thailand declined mainly owing to drought.

Seeds
For a definition of constant exchange rates, see Appendix A of the full version on www.syngenta.com

Field Crops: major brands NK®, GARST®, GOLDEN HARVEST® corn and oilseeds, HILLESHÖG® sugar beet
GARST® and GOLDEN HARVEST® enjoyed a highly successful season and contributed $402 million to first half sales. Sales of NK® corn and soybean were strong growing 25 percent (CER). Sunflower and sugar beet performed strongly, particularly in eastern Europe.

Vegetables and Flowers: major brands S&G® vegetables, ROGERS® vegetables, S&G® flowers

Vegetable sales recovered somewhat in the second quarter following a slow start due to poor weather in southern Europe. Demand for fresh vegetables continues to grow while the processing segment remains competitive. Sales of fresh produce in the USA expanded further.

Sales of S&G® flowers were lower notably in Europe, where they were affected by cautious ordering by distributors.

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Syngenta is a world-leading agribusiness committed to sustainable agriculture through innovative research and technology. The company is a leader in crop protection, and ranks third in the high-value commercial seeds market. Sales in 2004 were approximately $7.3 billion. Syngenta employs some 20,000 people in over 90 countries. Syngenta is listed on the Swiss stock exchange (SYNN) and in New York (SYT).