Monsanto Company Announces new Three-Year Share Repurchase Program

New Program Reflects Focus on Using Strong Cash Position to Benefit Shareowners

ST. LOUIS, April 16 /PRNewswire-FirstCall/ -- As part of its continuing effort to translate earnings growth into value for its shareowners, Monsanto Company (NYSE: MON - News) announced today that its Board of Directors has approved a new three-year share repurchase program.

Monsanto's Board of Directors authorized a new share repurchase program for up to $800 million of the company's common stock over a three-year period. This repurchase program will commence at the time the company's current share repurchase program is completed or its original target of October 2009, whichever is earlier.

Terry Crews, Executive Vice President and Chief Financial Officer of Monsanto, announced the company's intent to accelerate the purchase of shares under its existing share repurchase plan. The company's current share repurchase program was established in October 2005 as a four-year $800-million authorization. To date, the company is more than half way through the authorization and has repurchased a cumulative total of $429 million in shares through Feb. 29, 2008.

"Our share repurchase initiative reinforces our continued commitment to return value to our shareowners," said Crews. "This new program underscores the board's confidence in Monsanto's strategy and our financial discipline, and also reflects the new sustainable level of cash generation we believe will come from our Roundup business as well as the receipt of cash from our settlement with Solutia."

Crews noted that the share repurchase program is one of the key elements of Monsanto's three-pronged approach to using its strong cash position to benefit shareowners. In addition to repurchasing shares, Crews indicated that the company will continue to look for ways to invest capital to support the current business' growth, to invest in acquisitions that further growth, and to use dividends that return value to shareowners.

Monsanto announced earlier this month that it expects that its capital spend for its 2008 fiscal year will be in the range of $950 million. The company expects that its capital spending will remain at this level in its 2009 fiscal year as Monsanto invests in projects to meet the growing demand for its seeds and traits business, as well as its Roundup agricultural herbicides business.

Last month, Monsanto announced the acquisition of De Ruiter Seeds, a leading vegetable seed company based in the Netherlands. Upon completion, this acquisition is expected to transform Monsanto's vegetable seed platform into a $1 billion revenue business by 2012.

Last fall, Monsanto increased its quarterly dividend on its common shares from 12.5 cents per share to 17.5 cents per share, or an increase of 40 percent. The increase represented the largest increase in the company's quarterly dividend in its history. Since Monsanto was spun off as an independent company in August 2002, its Board of Directors has raised the dividend six times, an increase of nearly 200 percent.

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