Collaboration Focuses on Identifying Key Genes to Help Farmers Produce More, While Conserving More

ST. LOUIS, MO and REHOVOT, ISRAEL -- (Marketwire) -- 08/28/08 -- Monsanto Company (NYSE: MON) and Evogene Ltd. (TASE: EVGN) have entered into 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.