Higher Sales of Monsantos Roundup, Seeds and Traits Businesses in Latin America Drive First-Quarter Results

                                                        First      First
  ($ in millions)                                        Quarter    Quarter
                                                           2008       2007
  Net Sales By Segment
    Corn seed and traits                                   $467       $360
    Soybean seed and traits                                 162        170
    Cotton seed and traits                                   42         25
    Vegetable and fruit seed                                130        100
    All other crops seeds and traits                         35         25
  TOTAL Seeds and Genomics                                 $836       $680

    Roundup and other glyphosate-based herbicides        $1,008       $649
    All other agricultural productivity products            255        210
  TOTAL Agricultural Productivity                        $1,263       $859

  TOTAL Net Sales                                        $2,099     $1,539

  Gross Profit                                           $1,055       $682

  Operating Expenses                                       $662       $560

  Interest Expense - Net                                     $4         $3
  Other Expense - Net                                       $19        $14

  Net Income                                               $256        $90

  Diluted Earnings per Share (See note 1.)                $0.46      $0.16
  Items Affecting Comparability - EPS Impact
    Loss on discontinued operations                                 0.01
  Diluted Earnings per Share from Ongoing Business
   (For the definition of ongoing EPS, see note 1.)       $0.46      $0.17

  Effective Tax Rate                                        29%        12%

  Comparison as a Percent of Net Sales:
    Gross profit                                            50%        44%
    Selling, general and administrative expenses (SG&A)     22%        25%
    Research and development expenses (excluding
     acquired in-process R&D)                               10%        12%
    Income from continuing operations before income
     taxes and minority interest                            18%         7%
    Net income                                              12%         6%

Comment from Monsanto Chairman, President and Chief Executive Officer Hugh Grant:

"Our results in the first quarter represent a solid start to the fiscal year and highlight the strong performance of our Latin American business. With the most significant part of our annual business cycle still to come, we believe these results position us for another strong fiscal year for our business. Were seeing tremendous progress in projects across our R&D pipeline, and this underscores both our momentum and the value that our business is poised to deliver to farmers."

Outlook

The second and third quarters of fiscal year 2008 are expected to be the primary drivers for the companys fiscal year 2008 EPS results. These quarters reflect both the relative size of the companys U.S. business and the importance of its seeds-and-traits business to Monsantos earnings.

Monsantos full-year 2008 EPS is now expected to be in the range of $2.50 to $2.60, excluding the impact of Solutias emergence from bankruptcy, both on a reported and ongoing basis. The company also announced that it now expects that its free cash flow guidance for fiscal year 2008 will be higher even as it expects higher capital expenditures in fiscal year 2008. Strong demand for the companys corn seed products pulled forward the capital expenditures at its North American corn seed manufacturing facilities which had been previously announced as part of its two-year $610 capital expenditure plan.

The company noted that its free cash flow for fiscal year 2008 is now expected to be in the range of $900 million to $1 billion. The company expects net cash provided by operating activities to be in the range of $1.95 billion to $2.05 billion, and net cash required by investing activities to be approximately $1.05 billion for fiscal year 2008. (For a reconciliation of free cash flow, see note 1.)

Because Monsanto cannot predict with certainty when Solutia will be able to satisfy the conditions of its bankruptcy emergence, Monsantos full-year 2008 EPS and cash flow guidance does not reflect any receipt of cash or equity reimbursements associated with Solutias anticipated emergence from bankruptcy and the resolution of Monsantos claim. If Solutia emerges from bankruptcy protection as it currently projects in January 2008, Monsanto anticipates that it could realize a non-recurring gain (net of tax) of approximately $0.22 to $0.24 per share in second quarter 2008 for the settlement of Monsantos claim.

                    Seeds and Genomics Segment Detail

  ($ in millions)                         Net Sales          Gross Profit
                                       First     First      First     First
  Seeds and Genomics                  Quarter   Quarter    Quarter   Quarter
                                       2008      2007       2008      2007
  Corn seed and traits                 $467      $360       $285      $223
  Soybean seed and traits               162       170        111       122
  Cotton seed and traits                 42        25         24        15
  Vegetable and fruit seed              130       100         64        51
  All other crops seeds and traits       35        25         11         5
  TOTAL Seeds and Genomics             $836      $680       $495      $416


                                                           Earnings Before
  ($ in millions)                                          Interest & Taxes
                                                                (EBIT)
                                                           First     First
  Seeds and Genomics                                      Quarter   Quarter
                                                            2008     2007
  EBIT (For a reconciliation of EBIT, see note 1.)          $(20)      $1
  Unusual Items Affecting EBIT
     Loss on Discontinued Operations                        None      $(8)

The Seeds and Genomics segment consists of the companys global seeds and traits business, and genetic technology platforms.

Sales for Monsantos Seeds and Genomics segment were $836 million for the first quarter of fiscal year 2008, or 23 percent higher than the same period last year.

Results in the quarter benefited from increased sales from the companys corn seed and traits business, which were 30 percent higher when compared with sales in the same period last year. The increase in the quarter related primarily to strong demand for the companys corn seed products in key corn-growing areas including Brazil and Argentina.

During the quarter, Monsantos U.S. corn business also realized strong early orders for the companys corn products including its triple-trait technology which offers farmers both above-the-ground and below-the-ground insect protection, as well as weed control flexibility. The company is now forecasting that its triple-stack product could be planted on 25-to-27 million acres in the United States, an increase of some 50 percent over the prior year. Monsanto also now expects that its DEKALB corn seed brand in the U.S. could realize an increase of 2-to-3 percentage points, up from its previously announced range of 1-to-2 points.

                 Agricultural Productivity Segment Detail

  ($ in millions)                             Net Sales      Gross Profit
                                            First   First   First   First
  Agricultural Productivity                Quarter Quarter Quarter Quarter
                                             2008    2007    2008    2007
  Roundup and other glyphosate-based
   herbicides                              $1,008    $649    $487    $194
  All other agricultural
   productivity products                      255     210      73      72
  TOTAL Agricultural Productivity          $1,263    $859    $560    $266


                                                           Earnings Before
  ($ in millions)                                         Interest & Taxes
                                                               (EBIT)
                                                           First    First
  Agricultural Productivity                               Quarter  Quarter
                                                            2008    2007
  EBIT (For a reconciliation of EBIT, see note 1.)          $385    $103
  Unusual Items Affecting EBIT                              None    None

The Agricultural Productivity segment consists primarily of crop protection products, residential lawn-and-garden herbicide products, and the companys animal agriculture business.

Sales for Monsantos Agricultural Productivity segment were $1.3 billion for the first quarter of fiscal year 2008, or 47 percent higher compared with sales in the same period last year. The primary contributors to the segments growth in the quarter were higher pricing and volume of the companys Roundup agricultural herbicides in Brazil, Argentina and Europe.

Gross profit for the segment in the first quarter was $560 million or than more double compared with gross profit in the same period last year. The increase in the quarter related primarily to higher pricing of branded Roundup herbicides as well as higher volumes.