Monsanto to Acquire The Climate Corporation, Combination to Provide Farmers with Broad Suite of Tools Offering Greater On-Farm

  Monsanto to Acquire The Climate Corporation, Combination to Provide Farmers
  with Broad Suite of Tools Offering Greater On-Farm Insights

  *Investment creates industry-leading capabilities to meet the needs of
    farmers in the agriculture information age
  *Combination to put more information in farmers’ hands to increase
    productivity, utilize resources more efficiently; expands near and
    long-term opportunity for Monsanto’s business and Integrated Farming
    Systems platform

Business Wire

ST. LOUIS -- October 2, 2013

Monsanto Company (NYSE: MON) today announced it has signed a definitive
agreement to acquire The Climate Corporation for a cash purchase price of
approximately $930million. The acquisition will combine The Climate
Corporation’s expertise in agriculture analytics and risk-management with
Monsanto’s R&D capabilities, and will provide farmers access to more
information about the many factors that affect the success of their crops. The
companies’ combined capabilities will support greater productivity while
utilizing the planet’s finite resources more precisely.

The acquisition is expected to expand on The Climate Corporation’s leadership
in the area of data science, which represents the agriculture sector’s next
major breakthrough, and will immediately expand both the near- and long-term
growth opportunities for Monsanto’s business and Integrated Farming Systems
platform.

“The Climate Corporation is focused on unlocking new value for the farm
through data science,” said Hugh Grant, chairman and chief executive officer
for Monsanto. “Everyone benefits when farmers are able to produce more with
fewer resources. The Climate Corporation team brings leading expertise that
will continue to greatly benefit farmers and their bottom-line, and we want to
expand upon this tremendous work and broaden their reach to more crops and
more world areas. We look forward to working closely with our distribution
partners and others in the agricultural industry to bring this suite of
information resources to the farm.”

The Climate Corporation was founded in 2006 by a highly successful team of
software engineers and data scientists formerly with Google and other leading
Silicon Valley technology companies. Since that time, the company has built
the agriculture industry’s most advanced technology platform combining
hyper-local weather monitoring, agronomic data modeling, and high-resolution
weather simulations to deliver a complete suite of full-season monitoring,
analytics and risk-management products.

“Farmers around the world are challenged to make key decisions for their farms
in the face of increasingly volatile weather, as well as a proliferation of
information sources,” said David Friedberg, chief executive officer for The
Climate Corporation. “Our team understands that the ability to turn data into
actionable insight and farm management recommendations is vitally important
for agriculture around the world and can greatly benefit farmers, regardless
of farm size or their preferred farming methods. Monsanto shares this
important vision for our business and we look forward to creating even greater
experiences for our farmer customers.”

The Climate Corporation has a core set of support tools to benefit farmers.
These include products that help them boost yields on existing farmland and
better manage risks that occur throughout a crop season. The Climate
Corporation will continue to offer its current risk-management products
including an online service that provides crop planning, monitoring, and
recommendations, and insurance offerings through its network of independent
agents.

The acquisition is subject to customary closing conditions and is expected to
close in the first quarter of Monsanto’s 2014 fiscal year. Following the
acquisition, The Climate Corporation will operate its business to retain its
distinct brand identity and customer experience. The company will continue to
maintain headquarters in Silicon Valley and all of its employees will be
offered continued employment.

Combined Company to Be a Leader in Data Science, Acquisition Expected to Drive
Near-and Long-Term Growth Potential

The acquisition of The Climate Corporation represents a natural extension of
Monsanto’s vision to increase crop productivity, conserve more of our planet’s
natural resources and improve the lives of people around the world. It will
also greatly expand The Climate Corporation’s capabilities in data science,
agriculture’s next major growth frontier, an area that represents a potential
opportunity of $20 billion beyond Monsanto’s core focus today. The companies
estimate the majority of farmers have an untapped yield opportunity of up to
30 bushels to 50 bushels in their corn fields, and they believe that
advancements in data science can help further unlock that additional value for
the farm.

The combined capabilities will immediately expand both the near- and long-term
growth opportunities of Monsanto’s Integrated Farming Systems platform and
research and development pipeline in the coming years.

Longer-term, the combination is expected to broaden the product choices
available to farmers beyond Monsanto’s current row crop and vegetable
portfolio, both inside and outside of the United States. This includes the
delivery of insight and decision-support tools that could increase agriculture
productivity on a billion planted acres around the globe.

Monsanto and The Climate Corporation share a commitment to delivering
innovation for farmers through a broad range of choices and service providers.
Monsanto noted that, consistent with its broad-licensing and multi-channel
approach to technology, it intends to deliver the value of The Climate
Corporation’s current and future applications through its distribution
network.

Monsanto today also announced the company’s financial results for its fiscal
2013 fourth quarter and full year, including the financial effect of The
Climate Corporation acquisition. For more information about today’s earnings
announcement, see the press release and supporting resources available at
www.monsanto.com.

About Monsanto Company

Monsanto Company is a leading global provider of technology-based solutions
and agricultural products that improve farm productivity and food quality.
Monsanto remains focused on enabling both small-holder and large-scale farmers
to produce more from their land while conserving more of our world's natural
resources such as water and energy. To learn more about our business and our
commitments, please visit: www.monsanto.com. Follow our business on Twitter^®
at www.twitter.com/MonsantoCo, on the company blog, Beyond the Rows at
www.monsantoblog.com, or subscribe to our News Release RSS Feed.

About The Climate Corporation

The Climate Corporation aims to help farmers around the world protect and
improve their farming operations with uniquely powerful software and insurance
products. The company's proprietary technology platform combines hyper-local
weather monitoring, agronomic data modeling, and high-resolution weather
simulations to deliver climate.com, a SaaS solution that helps farmers improve
their profits by making better informed operating and financing decisions, and
Total Weather Insurance, an insurance offering that pays farmers automatically
for bad weather that may impact their profits. The company is also an
authorized provider of the U.S. Federal crop insurance program, enabling
authorized independent crop insurance agents to provide farmers with the
industry's most powerful full-stack risk management solution. In the face of
increasingly volatile weather, the global $3 trillion agriculture industry
depends on the company's unique technologies to help stabilize and improve
profits and, ultimately, help feed the world. For more information, please
visit http://www.climate.com or follow the company on Twitter @climatecorp.

Cautionary Statements Regarding Forward-Looking Information:

Certain statements contained in this release are "forward-looking statements,"
such as statements concerning the company's anticipated financial results,
current and future product performance, regulatory approvals, business and
financial plans and other non-historical facts. These statements are based on
current expectations and currently available information. However, since these
statements are based on factors that involve risks and uncertainties, the
company's actual performance and results may differ materially from those
described or implied by such forward-looking statements. Factors that could
cause or contribute to such differences include, among others: continued
competition in seeds, traits and agricultural chemicals; the company's
exposure to various contingencies, including those related to intellectual
property protection, regulatory compliance and the speed with which approvals
are received, and public acceptance of biotechnology products; the success of
the company's research and development activities; the outcomes of major
lawsuits and the previously-announced SEC investigation; developments related
to foreign currencies and economies; successful operation of recent
acquisitions; fluctuations in commodity prices; compliance with regulations
affecting our manufacturing; the accuracy of the company's estimates related
to distribution inventory levels; the company's ability to fund its short-term
financing needs and to obtain payment for the products that it sells; the
effect of weather conditions, natural disasters and accidents on the
agriculture business or the company's facilities; and other risks and factors
detailed in the company's most recent Form 10-K Report to the SEC. Undue
reliance should not be placed on these forward-looking statements, which are
current only as of the date of this release. The company disclaims any current
intention or obligation to update any forward-looking statements or any of the
factors that may affect actual results.

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Contact:

Monsanto Company
Lee Quarles, 314-694-2330
or
Christy Toedebusch, 314-694-6263
 
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