Seminis, Inc. announced today a global cost saving initiative designed to increase profitability by streamlining operations, increasing utilization of facilities, and improving efficiencies in the company.

The first phase of this initiative focuses on its North American operations which includes the opening of Seminis' state-of-the-art seed processing, packaging and shipping plant in Oxnard, California this fiscal year and followed by the expansion of Seminis' Warden, Washington plant to be completed in fiscal year 2001. These new facilities will give Seminis increased capacity to meet customer needs. Seminis will consolidate operations currently based in two facilities in California during this fiscal year and further consolidate operations currently based in two facilities in Idaho in the next fiscal year.

"The positive impact of this initiative is clear,'' said Seminis President and Chief Operating Officer
Alejandro Rodriguez. "After making nine acquisitions since 1994 and nearly five years of intense
integration of our global operations, this initiative demonstrates Seminis' commitment to capitalize on our global position and extensive resources. As we stated in our first quarter earnings release, we continuously seek ways to improve the efficiency of our research, production, and marketing activities worldwide. This global cost saving initiative will help us increase our market leadership and profitability.''

Immediate cost savings in fiscal year 2000 associated with the North American Operations restructuring phase are $500,000. Once this phase is fully implemented, Seminis expects to achieve annual cost savings close to $2,000,000 in fiscal year 2001 and well in excess of $2,000,000 in fiscal years 2002 and beyond. Seminis intends to record an estimated restructuring charge for the North American Operations reorganization of approximately $600,000 in the second quarter of this fiscal year. Seminis also intends to record estimated non-recurring expenses for the North American Operations reorganization of approximately $2,600,000 and $1,100,000 for fiscal years 2000 and 2001 respectively. Of these estimated non-recurring expenses, over 70% represents the cost of moving inventories and equipment to the respective new facilities. Additionally, Seminis expects to incur non-cash charges related to accelerated depreciation and asset write-downs.

Seminis is currently analyzing its South American, European and Korean operations. The company expects to launch initiatives in each of these regions over the next five years. More details on this longer-term plan will be provided in the near future.

Seminis is the largest developer, producer and marketer of vegetable seeds in the world. Seminis produces more than 60 species and 8,000 distinct varieties of vegetable and fruit seeds. 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, a Mexico-based conglomerate with leadership
positions in financial services, packaging and fresh foods.

Company news release
N2527