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Monsanto's American Seeds, Inc. Announces Five Acquisitions To Support Locally-Oriented Business Model

ST. LOUIS (June 28, 2006) - Monsanto Company’s (NYSE: MON) American Seeds, Inc. (ASI) subsidiary announced today it is making five additions to its family of regional brands. The additions are expected to further bolster ASI's ability to reach farmers customers in underserved geographies with a technology-rich, locally-oriented business model.

In separate transactions, ASI acquired the seed marketing and sales businesses of Diener Seeds, based in Reynolds, Ind.; and Sieben Hybrids, based in Geneseo, Ill. ASI also entered into definitive agreements to acquire Kruger Seed Company, based in Dike, Iowa; Trisler Seed Farms, based in Fairmount, Ill.; and the seed marketing and sales business of Campbell Seed, based in Tipton, Ind. on July 1, 2006. Collectively, the five companies serve farmers throughout the central and eastern Corn Belt.

"ASI is pleased to announce these additions to the company's regional business model," said Ernesto Fajardo, vice president of Monsanto's U.S. crop production business. "ASI's growth over the last year serves as a true testament to Monsanto's pioneering research in breeding and biotech, as well as the benefits that these platforms are generating for regional seed companies and, in turn, their farmer customers."

Dennis Plummer, ASI president, also welcomed today's announcement. "ASI's high-touch, regional approach is unparalleled in the seed industry," Plummer said. "These companies have a long-standing commitment of serving farmers throughout the Corn Belt. We look forward to working with them to introduce new seed-based innovations for their farmer-customers, while maintaining their strong track record of customer service."

Monsanto is acquiring these businesses in cash transactions aggregating approximately $77 million. The specific terms of the individual transactions were not disclosed. Collectively, these five seed companies represent approximately 1.4 percent and 2.0 percent of total U.S. corn and soybean seed sales, respectively.

American Seeds, Inc. (ASI), which was formed by Monsanto in 2004, serves as a holding company for regional seed companies that market primarily corn and soybeans. ASI provides support for these regional seed businesses with capital, genetics and technology investments. These investments allow the operating companies of ASI to more directly connect their customers to significant innovations in genomics-based breeding and other new technologies while continuing to operate autonomously and locally, providing great services to their customers. For more information on ASI, see: www.americanseedsinc.com.

Monsanto Company is a leading global provider of technology-based solutions and agricultural products that improve farm productivity and food quality. For more information, please visit the company's web site at www.monsanto.com.