S. These statements
are based on current expectations and currently available information. A study published in
November by Kline + Company predicts that the market for liquid chemical and
fumigant nematicide treatments, estimated at more than $280 million in the
United States, will lose a significant portion of that value in the next
decade.com. corn crop.
Monsanto Company (NYSE: MON) is a leading global provider of technology-
based solutions and agricultural products that improve farm productivity and
food quality.

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Molecular breeding applies technology like computer databases, molecular
markers and other analytical tools to improve the predictability and
efficiency of breeding. corn acres last year.)

About Monsanto Company
Monsanto Company is a leading global provider of technology-based
solutions and agricultural products that improve farm productivity and food
quality.monsanto.00 $2.08

2. The study provides sales and market share data by active ingredient
for 2002 or 2003 for each crop market , as well as estimates of active
ingredient consumption and application rates., executive vice president and chief technology officer
for Monsanto.S.

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(For a reconciliation of free
cash flow, see note 2.

Kline + Company's Study Predicts Major Shift in Nematode Control

Both of these chemicals are facing
increasing scrutiny while two other nematicides, methyl bromide and Nemacur,
are being phased out.
Still, genetic resistance won't entirely eliminate the need for chemical
control for these crops, according to Mancer Cyr, senior associate in Kline's
Specialty Pesticides Practice.

klinegroup.

ST.

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Monsanto Chief Technology Officer to Address Investment Conference

00 $2., Due to environmental
regulatory pressures and a push to develop genetic resistance in key target
crops, the U.S. state level and
approvals in countries that are major importers of U.
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.

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50, on a reported and
ongoing basis.S.
"Genetically modified crops may not protect against all types of
nematodes, and effectiveness will vary from crop to crop.
"Over the last two decades, Monsanto scientists have focused on
researching and delivering meaningful products to our farmer customers," said
Robert T. MON88017 was therefore developed using a
transformation vector that contained both of the genes in one genetic package.

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S. corn seed market for the fifth consecutive
year, and those gains have been made with the tools on the front edge of our
molecular breeding capability.
Fraley's presentation slides are available by visiting Monsanto's web site
at http://www. Reconciliation of Free Cash Flow: Free cash flow represents the total
of cash flows from operations and investing activities.
At the same time, biologists are working to develop or enhance genetic
resistance to nematodes in key crops like potatoes, tomatoes, and cotton. Environmental Protection Agency (EPA)
and Food and Drug Administration (FDA) had completed their reviews of MON88017
previously. This means that the rootworm-control gene is already combined
with the glyphosate-tolerance gene when the genetic package is inserted into
the plant.

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"
Monsanto's branded DEKALB and Asgrow corn seed brands have climbed six
market share points since 2001 and were planted on approximately 16 percent of
U .

Monsanto Company
Reconciliations of Non -GAAP Financial Measures
Unaudited

Ongoing EPS and Free Cash Flow: The presentations of ongoing EPS and free
cash flow are not intended to replace net income (loss), cash flows,
financial position or comprehensive income (loss), and they are not
measures of financial performance as determined in accordance with
generally accepted accounting principles (GAAP) in the United States. Reconciliation of EPS to Ongoing EPS: Ongoing EPS is calculated
excluding certain after-tax items which Monsanto does not consider part
of ongoing operations. corn.

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"With many of the current nematicides
already being phased out or heading in that direction, growers will need to
switch to something.htm or contact
Mancer Cyr at (856) 764-3536 or mancer_cyr@klinegroup.
The USDA deregulation was based on a comprehensive Plant Protection Act
risk assessment of MON88017.S. "Today's announcement represents a significant milestone
demonstrating our company's leadership in developing and registering second
generation insect and weed control biotech products as well. The corn
rootworm has earned the nickname the "billion-dollar pest" as the USDA
estimates that this pest causes $1 billion in lost revenue annually to the
U.S.

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Those gains were fueled by the company's
significant investment in global sources of germplasm and the early
application of database-driven predictive breeding, both of which set the
stage for the expanded application of molecular markers and marker-assisted
breeding.94
In-Process R+D Write-Off
Related to the Seminis and
Emergent Acquisitions - - 0.

For more information, go to http://www. These regulatory clearances represent a
major step toward the future commercialization of these products .S. over the long term.

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Free cash flow
guidance for both years excludes cash that may be used for a rights offering
in the bankruptcy proceedings of Solutia, Inc.com . Undue reliance should not be placed on these forward-looking
statements, which are current only as of the date of this release . market for chemicals used to control nematode infestations is
poised to experience big changes over the next ten years. MARKET FOR NEMATICIDES 2004 covers five crop categories and
21 different crop and noncrop markets to determine the extent of recognized
nematode damage, identify important nematode species, and examine the degree
to which the damage is treated with cultural practices versus chemicals and
fumigants. LOUIS, a second-generation product combining its rootworm
and Roundup Ready(R ) Corn 2 trait technologies in a single event; and MON88017
stacked with YieldGard(R) Corn Borer.

However, the traditional breeding process can be inefficient,
requiring a longer development time .

Commercial Offerings Expected in the Future
Monsanto is seeking the necessary regulatory clearances for MON88017 and
MON88017 stacked with YieldGard Corn Borer on the U.

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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.82 - $3.82 - $3. With respect
to the projected free cash flow guidance provided under the caption
"Fiscal Year 2006 Target" and "Fiscal Year 2007 Target," Monsanto does
not include any estimates or projections of Net Cash Provided
(Required) by Financing Activities because in order to prepare any such
estimate or projection , Monsanto would need to rely on market factors
and conditions that are outside of its control .

Monsanto's Second-Generation Rootworm Corn Technologies Receive Final Regulatory Clearance

; developments
related to foreign currencies and economies; successful completion and
operation of recent and proposed 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 filings with
the SEC.

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"The strength of our breeding program has been one of the key catalysts
for the gains we've made in our seeds and traits strategy during the past few
years, especially in our corn business," Fraley says.35 to $2.82 to $3.J. And the industry must anticipate even stricter
environmental requirements than the ones that caused the exit of their
predecessors.klinegroup.D. in 2005. companies as well as through
licensed, independent seed companies.

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Fraley notes that in the 2006 crop year, the first molecular breeding
hybrids will enter the U.00 on a reported and an ongoing basis for fiscal year 2007,
which reflects a 20 percent growth rate from the fiscal year 2006 EPS
guidance .
This could necessitate the use of combination treatments, particularly for
high-value vegetable crops. Undue reliance should not be placed on these forward-looking
statements, which are current only as of the date of this release.

Listings of websites that provide online databases and reference information.

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35 - $2.duff@kline-europe. Monsanto estimates
that its YieldGard Rootworm corn technology has an available market of 25 to
30 million acres in the U. The company estimates that the Roundup Ready corn
technology has an available market potential to reach 60 million acres over
the long term. Recent company estimates suggest the combined acres of Roundup
Ready Corn 2 and YieldGard Rootworm technologies will expand again in 2006 to
44M acres.

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"We are poised to make
market share gains in the U. The
following tables reconcile ongoing EPS and free cash flow to the
respective most directly comparable financial measures calculated in
accordance with GAAP . Introduced control
can also fade over time," Cyr says.

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"We are just seeing the tip of the iceberg in terms of the power and
influence of molecular breeding," Fraley says. Today , molecular breeding can double the rate of
"genetic gain" -- the improvement in important characteristics such as yield
and tolerance to environmental stress."

Outlook
In his presentation , Fraley will confirm Monsanto's earnings per share
(EPS) and free cash flow guidance. For more information on Monsanto, see: http://www.35 - $2.64
Tax Benefit on Loss from
European Wheat and
Barley Business - - (0.
But while these factors and others are converging to create a declining
market, they are also creating an underserved one, and pesticide suppliers may
find an opportunity to extend the use of their existing products into this
secondary application. MARKET FOR NEMATICIDES 2004, indicates that by 2013,
nematode resistance -- mainly introduced via traditional plant breeding
methods -- will have a major impact on nematicide chemical use for more than
half of the 21 crop types Kline examined.
The product 's Roundup Ready Corn 2 technology provides growers with crop
safety and unsurpassed weed control with Roundup agricultural herbicides. Monsanto has not announced a
trade name for this technology at this time, and will refer to it as MON88017
until it completes the branding process.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.

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S.
Note to editors: DEKALB and Asgrow are registered trademarks owned by
Monsanto Company and its wholly owned subsidiaries.91
Solutia-Related Charge - - 0. LITTLE FALLS, N. Previously, corn hybrids containing both the corn rootworm
protection and glyphosate tolerance traits have been developed by crossing two
inbreds containing the individual traits using traditional breeding
techniques .
Monsanto's 2005 field research demonstrated that MON88017 provided
outstanding performance for corn rootworm control along with safety to the
application of Roundup agricultural herbicides . These statements
are based on current expectations and currently available information.

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monsanto .com and clicking on "Investor 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."
Suitable alternatives to the chemicals to be shelved will often be
expected to provide control of weeds and soil pathogens as well as nematodes. Monsanto's current YieldGard Rootworm product is estimated to
have been planted on more than four million acres in 2005. Commercial
launch timing for these products has not been announced.

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Fraley will provide an update on the company's research-and-development
pipeline , strategic initiatives, product performance and other business
matters.
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 and proposed 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 filings with
the SEC.

1.

(Dollars in millions) Fiscal Fiscal Fiscal
Year Year Year
2007 2006 2005
Target Target

Net Cash Provided by
Operations $1,375 - $1,450 $1,300 - $1,375 $1,737
Net Cash Required by
Investing Activities $(500) $(475) (1,667)
Free Cash Flow $875 - $950 $825 - $900 $70
Net Cash Provided (Required)
by Financing Activities N/A N/A (582)
Net Increase (Decrease)
in Cash and Cash Equivalents N/A N/A (512)
Cash and Cash Equivalents
at Beginning of Period N/A N/A 1,037
Cash and Cash Equivalents
at End of Period N/A N/A $525

In Europe, contact
Jonathan Duff at +32 (0) 2 770 4740 or jonathan.com) is an
international business consulting and market research firm serving clients
worldwide in the specialty pesticides , biotechnology, and life sciences
sectors. This second-
generation YieldGard Rootworm technology is expected to be made available for
planting in corn hybrids through Monsanto's branded seed businesses -
DEKALB(R) and Asgrow(R) - American Seeds, Inc.

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Chief Scientist Indicates Recent Corn Seed Market Share Gains Reflect
'Tip of the Iceberg' of New Breeding Technology

ST . Monsanto also continues to expect that EPS will be in the range
of $2.)
The company will also confirm that its guidance for free cash flow in
fiscal year 2006 remains in the range of $825 million to $900 million, and in
the range of $875 million to $950 million for fiscal year 2007.

Fiscal Fiscal Fiscal
Year Year Year
2007 2006 2005
Target Target

Diluted Earnings per Share $2.50 $0.
In fact, the two main chemicals used to control infestations of the
microscopic worms that damage plant roots, stems, and foliage are applied
primarily to control other problems -- insects in the case of aldicarb and
soil pathogens in the case of metam sodium. The U. For more information on Monsanto, see: http://www.

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LOUIS, Monsanto Company (NYSE: MON)
Executive Vice President and Chief Technology Officer Robb Fraley is scheduled
to address investors this week in London, including a presentation at the
Credit Suisse Agrochemicals Conference on Friday. commercial portfolio, and the percentage of the
product portfolio with those molecular breeding hybrids will continue to
increase significantly going forward.50 $2.
Kline 's study, THE U.
THE U.S.monsanto.

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(For a reconciliation of EPS on an ongoing basis, see note 1.02
Income on Discontinued
Operations and
Related Restructuring - - (0.04)
Diluted Earnings per Share
from Ongoing Business $2.
Kline is also considering a broader analysis on the major regional markets
for nematicides outside the United States and is soliciting input from
potential subscribers to define the scope of this project.com/Y579.
The product's YieldGard Rootworm corn technology allows the corn plant to
naturally protect its roots against the damaging corn rootworm.S.

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39)
Restructuring Charges - Net - - 0.

Established in 1959, Kline + Company (http://www.
This approach enables the simultaneous introduction of both traits into corn
hybrids , thereby reducing breeding costs and increasing the speed at which
elite corn germplasm can be provided to corn growers. The company
disclaims any current intention or obligation to update any forward -looking
statements or any of the factors that may affect actual results.

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Part of his update highlights the advancements being made to increase
the value of the company's plant breeding program, including the application
of molecular breeding, which he says is just beginning to be recognized. The company 's full-year 2006 EPS guidance
will be toward the upper end of its range of $2.S."

About the MON88017 Event
MON88017 is a vector stack of Monsanto's Rootworm and Roundup Ready Corn 2
trait offerings.

yearbook cooperators

The company
disclaims any current intention or obligation to update any forward -looking
statements or any of the factors that may affect actual results.com. Fraley, Ph.
Roundup Ready corn technology is estimated to have been planted on 24 million
acres in the U.

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Kline + Company's Study Predicts Major Shift in Nematode Control

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Monsanto Chief Technology Officer to Address Investment Conference

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Monsanto's Second-Generation Rootworm Corn Technologies Receive Final Regulatory Clearance

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Listings of websites that provide online databases and reference information.

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