August 22, 2008

Seed manufacturer Monsanto and China National Seed Group Corporation (CNSGC) have entered into an agreement to expand their investments in the companies' existing Chinese joint venture company.

The agreement between China Seed, a wholly-owned subsidiary of Sinochem Corporation, and Monsanto Far East Limited, a wholly-owned subsidiary of Monsanto Company, will increase their investment in CNSGC-DEKALB Seed Company Ltd. ("CNDK"), a joint venture company formed in 2001.

The investments will enable CNDK to expand its existing corn seed business by combining CNDK's business operations with the corn seed business of China Seed and providing CNDK access to elite corn seed hybrids developed by Monsanto and China Seed.

China is the world's second largest corn growing region. Chinese farmers annually plant approximately 27 million hectares to the crop.

Once approved by Chinese Government authorities, the joint venture is expected to enable China Seed to expand its product offerings to local farmers across all four corn-growing areas, well beyond the tropical region where the company currently operates.

China Seed will contribute its existing corn seed business assets and Monsanto will contribute RMB 575 million RMB (US$84 million ) to the joint venture. China Seed will continue to hold a fifty-one percent ownership interest in CNDK while Monsanto will continue to hold a 49 percent ownership interest in the joint venture.

China Seed, first established in 1978, has been awarded twice the No. 1 ranking among the top fifty seed companies in China. The company became a wholly-owned subsidiary of Sinochem Corporation in June 2007.