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Monsanto Welcomes Emergence of Viable Solutia, Highlights Anticipated Financial Effect

ST. LOUIS, Feb. 28 /PRNewswire/ --

ST. LOUIS, Feb. 28 /PRNewswire-FirstCall/ -- Monsanto today welcomed Solutia's emergence from bankruptcy, which signals an opportunity for Solutia to move forward and represents a positive resolution to Monsanto's involvement in the bankruptcy process.

"Throughout this process, our primary goal has been the successful emergence of a viable Solutia," said Terry Crews, Monsanto's chief financial officer. "We are pleased to see the resolution of this matter for both Solutia and the St. Louis community, and we are encouraged that Solutia retirees now have greater clarity and protection of their rights."

As part of Solutia's emergence from bankruptcy and in accordance with the reorganization plan, Monsanto anticipates that it will 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 Monsanto's claims. Cash received as a result of the resolution will be additive to the company's free cash flow.

Under the resolution of this matter and in recognition of its claims and contributions regarding the reorganized business, Monsanto will receive cash of approximately $162 million and approximately 2.5 million shares of new Solutia common stock, resulting in less than 5 percent ownership interest. The consideration received will represent a settlement of its claims, including certain administrative and environmental remediation expenses incurred throughout the bankruptcy process.

Monsanto Company is a leading global provider of technology-based solutions and agricultural products that improve farm productivity and food quality. For more information on Monsanto, see: http://www.monsanto.com.