ST. LOUIS, Aug. 6 /PRNewswire-FirstCall/ -- Monsanto Company's (NYSE: MON) research-and-development (R&D) pipeline is poised to deliver another wave of value to farmers worldwide, as positive results from its Southern Hemisphere field research program confirm the momentum in Monsanto's industry-leading seeds-and-traits product pipeline.

"The most successful R&D program in the ag industry is getting stronger, with novel solutions that put the premiums of higher yield and enhanced farm management tools in the convenience of a seed," said Robb Fraley, Monsanto's chief technology officer. "Farmers are increasingly voting for these technologies with their seed purchases, and the next projects being testing in the field today will give them even greater value.

"We're seeing impressive results from the tests on all three of our high impact technologies (HIT), strong progress across our portfolio of breakthrough soybean technologies, and a quick start and great progress in the yield and stress projects associated with our BASF collaboration."

The Southern Hemisphere field testing provides a valuable set of data that complements the company's primary field research in North America and helps continue to advance key research programs, including its HIT projects. Projects in the HIT program are targeted for larger-acre commercial launches in high-yielding seed offerings. This approach is expected to enable more farmers to access new technologies in their early years of commercial launch.

Research highlights -- Roundup RReady2Yield soybean technology

One of the cornerstones of Monsanto's soybean pipeline is the company's second-generation herbicide-tolerance technology, Roundup RReady2Yield soybeans.

Monsanto announced last week that this technology, also one of its HIT projects, recently completed the regulatory processes in the United States and Canada, and now one step closer to farmers' fields. Roundup RReady2Yield is the first soybean trait technology developed in more than a decade and represents the future platform for Monsanto's entire soybean portfolio. Monsanto plans to stack new technology offerings with Roundup RReady2Yield so farmers get the maximum performance out of a single seed.

"Roundup RReady2Yield is certainly the centerpiece of our soybean pipeline," said Fraley. "However, farmers that make the investment in Roundup RReady2Yield can expect more than just the yield and plant health benefits of this particular trait, because they are really accessing the first of what will become a platform of new traits that will be stacked on top of Roundup RReady2Yield."

Monsanto has been conducting field tests in South Africa and Argentina on Roundup Ready soybeans treated with Roundup herbicide to continue investigating the potential for protection against Asian Soybean Rust. Compared with non-treated soybean controls, soybeans treated with Roundup agricultural herbicide at application timings not currently labeled for use appear to demonstrate a reduction of Asian Soybean Rust severity.

Monsanto is researching the potential for future registration and use of novel, proprietary Roundup formulations over the top of Roundup RReady2Yield soybeans to provide farmers with properties that could mark a step-change in overall soybean yield and performance.(1)

Research highlights -- Soybean technology platform

Monsanto's portfolio of soybean technologies has the potential to redefine the soybean industry in the next decade, according to Fraley. Some of the key results the company is already seeing include:

  -- Higher-yielding soybeans:  Monsanto researchers confirmed that the
     insertion of a single gene can boost the intrinsic yield potential of
     the soybean plant, which would create an incremental yield increase
     over other traits. Significantly, the first of the new Phase II
     commercial-track events demonstrates up to a 10 percent increase in
     yield across 10 environments in Argentina, exceeding the targeted 5 to
     7 percent product concept yield boost. The company is currently testing
     an additional 60 events in the U.S. during the 2007 growing season.
     This product has been developed as part of Monsanto's ongoing
     collaboration with Mendel Biotechnology, Inc. Today, this technology is
     one of the yield and stress projects included in Monsanto's R&D
     collaboration with BASF.
  -- Vistive III soybeans (HIT):  Vistive III soybeans are designed to lower
     linolenic acid and saturate content while boosting oleic content to
     give soybean oil a health profile similar to olive oil while
     maintaining the versatility and cost-effectiveness of soybeans for food
     applications.  Results from 14 locations in Argentina showed that the
     lead event continues to meet the product composition targets for an oil
     profile of 55 to 75 percent oleic acid content and less than 7 percent
     saturate content.  Additional testing confirmed the agronomic yield
     targets for the product concept.
  -- Dicamba-tolerant soybeans:  In the first season of South American
     testing and the second overall season of testing, research indicates
     that dicamba-tolerant soybeans have demonstrated tolerance at both
     pre-emergent and post-emergent application timing, indicating that the
     trait is conveying the desired level of herbicide tolerance in the
     Phase II commercial-track events.  Dicamba-tolerance is the
     third-generation weed control trait that will be stacked with Roundup
     RReady2Yield to give farmers' the most advanced in-seed weed-control
     system available.

"With the traits in development today, soybeans are poised to emerge from the shadow of corn in terms of technology application," said Fraley. "With shifts in planting patterns driving the need for increased yield and improved-quality oils, the combination of our in-house efforts and our network of partners is focused on giving farmers the tools they need for an emerging opportunity in soybeans."

Other Research Highlights

In addition to projects in the emerging soybean R&D pipeline, the Southern Hemisphere testing provided additional results for other key yield-and-stress projects, including drought-tolerant corn and higher-yielding canola. These projects are also part of the company's multi-year R&D collaboration with BASF that focuses on the development and commercialization of yield-and-stress technologies.

In the second year of South American testing, the lead corn drought gene was tested in variable environmental conditions across three locations. The drought-tolerant technology consistently delivered yield improvements compared with controls under water-stressed conditions, with yield advantages of up to 12 bushels per acre in the Argentinean locations. Monsanto is currently in the midst of its fifth season of field testing its lead drought-tolerant genes in the United States. The 2007 U.S. field testing for drought-tolerance represents a significant expansion in the number of locations, different test environments, and germplasm backgrounds, as Monsanto researchers are working to validate product performance of the drought lead in environments ranging from dryland acres to drought insurance in the Corn Belt.

"Our first-generation drought-tolerant corn trait is one of the centerpieces of our pipeline, and we're pleased with the results we're seeing again this year," Fraley said. "Beyond this first-generation, the combined capabilities in our collaboration will help us develop more leads and even better-performing upgrades, and deliver these innovations to farmers faster.

"Our second-generation drought-tolerant corn is tracking just one phase behind our first-generation product, which is unprecedented speed in this industry and speaks to the additive opportunity from these multi-generation product families," said Fraley.

In its first year of field testing the Phase II Higher-Yielding canola project, the technology showed a significant yield improvement of more than 15 percent over controls. Sixty events are being tested in expanded U.S. and Canadian field trials this summer as event selection continues to make progress. When commercialized, Monsanto plans to offer the Higher-Yielding canola trait in a stacked combination with its second-generation weed-control trait for canola, Roundup RReady2Yield canola.

Additional Reference Materials:

As part of today's announcement, interested parties may also consider these other related links:

  -- For more information about Monsanto's R&D collaboration with BASF,
     please visit: http://www.monsanto.com/monsanto/layout/basf/default.asp.

-- For more information on Monsanto's complete R&D pipeline, please visit: http://www.monsanto.com/monsanto/content/sci_tech/prod_pipeline/productPipelin e.pdf.

About Monsanto:

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: http://www.monsanto.com/.

Cautionary Statements Regarding Forward-Looking Information:

Certain statements contained in this release are "forward-looking statements," such as statements concerning the company's anticipated financial results, current and future product performance, regulatory approvals, business and financial plans and other non-historical facts. These statements are based on current expectations and currently available information. However, since these statements are based on factors that involve risks and uncertainties, the company's actual performance and results may differ materially from those described or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, among others: continued competition in seeds, traits and agricultural chemicals; the company's exposure to various contingencies, including those related to intellectual property protection, regulatory compliance and the speed with which approvals are received, and public acceptance of biotechnology products; the success of the company's research and development activities; the outcomes of major lawsuits, including proceedings related to Solutia Inc.; developments related to foreign currencies and economies; successful completion and operation of recent acquisitions; fluctuations in commodity prices; compliance with regulations affecting our manufacturing; the accuracy of the company's estimates related to distribution inventory levels; the company's ability to fund its short-term financing needs and to obtain payment for the products that it sells; the effect of weather conditions, natural disasters and accidents on the agriculture business or the company's facilities; and other risks and factors detailed in the company's most recent periodic report to the SEC. Undue reliance should not be placed on these forward-looking statements, which are current only as of the date of this release. The company disclaims any current intention or obligation to update any forward-looking statements or any of the factors that may affect actual results.

Notes to editors: Roundup, Roundup RReady2Yield, and Vistive are registered trademarks of Monsanto Technology LLC.

References to Roundup herbicides in this release mean Roundup branded herbicides, excluding lawn-and-garden herbicide products.

(1) Glyphosate herbicides are not registered or labeled for use to protect against or control Asian Soybean Rust, and existing maximum residue limits may not be adequate for this potential use. It is a violation of federal law to use a registered herbicide product in a manner inconsistent with its labeling

SOURCE: Monsanto

CONTACT: Lee Quarles, +1-314-694-2330; Analysts: Scarlett Lee Foster,
+1-314-694-8148, both for Monsanto

Web site: http://www.monsanto.com/

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