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Monsanto Company and Evogene Ltd. to Collaborate on Yield and Strech Research

St. Louis, MO and Rehovot, Israel—Monsanto Company (NYSE:MON) and Evogene Ltd. Aug.28 announced a five-year research and development collaboration focused on identifying key plant genes related to yield, environmental stress and fertilizer utilization.

The agreement is intended to enhance research efforts to discover and deliver novel, yield-enhancing technologies at a time of increasing demand for grain globally.

"We have been very impressed with Evogene's discovery capabilities, particularly their computer-based, predictive biology efforts," said Robb Fraley, Monsanto's Chief Technology Officer.

"We look forward to building upon our strong relationship with Evogene to deliver products to farmers' fields that help meet the needs for increased food, fiber and energy while protecting the environment."

"In view of Monsanto's leading position in the seed business and its history of delivering innovative products to farmers, we look forward to this expansion of our gene discovery collaboration," said Mr. Ofer Haviv, Evogene's President and CEO.

"The collaboration reflects the companies' shared vision of delivering value to farmers through the development of yield-enhanced crops."

Under the terms of this collaboration:

•Evogene will provide Monsanto with candidate genes discovered by Evogene's computational platform that are predicted to improve yield, fertilizer utilization and a plant's reaction to environmental stress. The genes will be validated in model plants.

•The collaboration will provide Monsanto access to new genes strengthening its entire gene discovery program. Monsanto will receive exclusive licensing rights to such genes in a number of crops, including corn, soybean, canola and cotton.

• Monsanto will evaluate the licensed genes in its research and development pipeline. Products that emerge from the joint development will be commercialized by Monsanto through its branded and licensed businesses.

• Evogene expects to receive approximately $35 million over the research term of the collaboration in the form of an upfront payment and annual research payments, in consideration for the performance of the research.

• Evogene is also entitled to development milestone and royalty payments based on sales of any resulting products.

Monsanto believes this new collaboration will help support its commitment to double yields in its core crops by 2030 and strengthen its ongoing work with Evogene.

In September of 2007, the two companies announced a collaboration to improve nitrogen use efficiency in corn, soybeans, canola and cotton.

In a separate agreement, Monsanto has purchased an $18 million (USD) equity stake in Evogene and has agreed to purchase an additional $12 million in the future, subject to certain Evogene diligence requirements.

Martin Gerstel, Chairman of Evogene, stated, "Having the world's leading agriculture company as a major collaborator moving forward is clearly a transforming event in the history of our company, and we welcome Monsanto as a shareholder.

"Furthermore, with this new financial commitment, we are now convinced that Evogene has the resources required to aggressively pursue our two primary areas of interest -- improved plants for agriculture and novel feedstocks for biofuels."

For more information, call 314-694-2478.