Monsanto Media Statement on the Pricing of Posilac

aka: rBGH, rBST, Recombinant Bovine Growth Hormone, and so on

22jan04

[More on Monsanto and its products]

MONSANTO MEDIA STATEMENT
UPDATE ON ALLOCATION AND PRICING OF POSILAC (trademark) January 22, 2004

"Monsanto has announced a reduction in the allocation of POSILAC (trademark) bovine somatotropin. Due to a combination of factors including necessary corrections and improvements at our supplier's manufacturing facility, customers will be allocated 50 percent of their historic shipments beginning March 1, 2004. This shortfall in supply is expected to continue through the end of 2004.

In December 2003, we announced that the availability of POSILAC would temporarily be limited to approximately 85 percent of our customers' past monthly shipment averages, subject to adjustment. Upon further information and evaluation, it became clear that the time needed to implement necessary corrections at our supplier's plant would more significantly impact production capacity than we originally anticipated.

The corrections and improvements at the plant address findings from supplier audits, as well as observations made by the FDA during a routine inspection in connection with requested changes at the site. Monsanto is working diligently with the FDA and our supplier to implement these corrections and improvements as quickly as possible.

Every batch of POSILAC released for sale continues to meet stringent company quality standards.

We recognize and sincerely regret the inconvenience this situation creates for our valued customers. We are in the process of contacting each of our customers to provide facts about the reduced allocation, and we will continue to provide updates as additional information becomes available.

Also effective March 1, 2004, the list price of POSILAC will increase by 9 percent, or $0.50 per dose. The pricing decision is independent of the allocation and is the first increase for POSILAC since its introduction in 1994. POSILAC remains an outstanding value for dairy producers at the new price.

For more information, please contact Janice Armstrong, 314-694-3546.