Scotts Forms Strategic Biotech Alliance With Rutgers, The State University of New Jersey.

MARYSVILLE, Ohio--(BUSINESS WIRE)--Dec. 14, 1998--The Scotts Company (NYSE:SMG) today announced that it has completed an agreement with Rutgers University, The State University of New Jersey, to develop improved grasses for professional golf courses through genetic engineering.

Under the agreement, Scotts will receive exclusive worldwide rights to Rutgers' patented transgenic varieties of creeping and colonial bentgrasses, including any new varieties developed over the period of the agreement. Bentgrasses are by far the most desirable grasses used in golf course fairways, tees and putting greens.

"We envision Scotts(R) brand turfgrasses with disease resistance and other traits that will justify a trait premium while allowing professional golf course superintendents to cut their chemical and labor costs substantially," said Michael P. Kelty, Senior Vice President of Scotts' Professional Business Group.

Rutgers will be responsible for the advanced biotechnology research to isolate genes with desirable traits and for inserting these genes into their superior bentgrass germplasm, a key element being the use of Scotts' proprietary gene insertion technology. Through its 80% ownership of Sanford Scientific Inc. (SSI), Scotts holds the exclusive license to use biolistic ("gene gun") technology in the commercial development of genetically transformed turfgrasses, flowers and woody ornamental plants. The technology delivers desirable genetic characteristics by high-velocity injection into cells and today is the preferred technology for the development of genetically transformed grasses.

Scotts will work in cooperation with Rutgers on breeding and field testing new plants, and Scotts will be responsible for commercializing the transgenic varieties through seed production, marketing and distribution.

"We are leveraging Rutgers' worldwide leadership in turfgrass breeding and plant biotechnology, as well as SSI's proprietary technology to develop the genes. Scotts will concentrate on what we do best, commercializing the technology and marketing it to the end user," said Charles M. Berger, Scotts' Chairman, President and Chief Executive Officer.

The Scotts Company is the world's leading supplier of consumer products for the lawn and garden care, professional turf care and professional horticulture businesses. The Company owns what are by far the industry's most recognized brands. In the U.S., consumer awareness of the Company's Scotts(R), Miracle-Gro(R) and Ortho(R) family of brands outscores the nearest competitors in their categories by several times, as does awareness of Round-up(R), for which Scotts is the exclusive marketer. In the U.K., the Company's brands include Weedol(R) and Pathclear(R), the top-selling consumer herbicides; Evergreen(R), the leading lawn fertilizer line; Shamrock(R), the leading line of peat products; the Levington(R) line of lawn and garden products; and Miracle-Gro(R), the leading plant fertilizer. In continental Europe, the Company's leading brands include KB(R), Fertiligene(R), Celaflor(R) and Nexalotte(R).

Statement under the Private Securities Litigation Act of 1995: Forward-looking statements represent challenging goals for the Company, and the achievement thereof is subject to a variety of risks and assumptions. Certain forward-looking statements contained in this press release, include, but are not limited to, information regarding the future economic performance and financial condition of the Company, the plans and objectives of the Company's management, and the Company's assumptions regarding such performance and plans. Actual results may differ materially from the forward-looking information in this release, due to a variety of factors, including, but not limited to:

- The effects of weather conditions on sales of the Company's

products, especially during the spring selling season;

- The success of the Company's advertising and promotional

programs;

- The Company's ability to maintain favorable profit margins on its

products and to produce its products on a timely basis;

- Inherent risks of international development including currency

exchange rates, economic conditions, regulatory and cultural

differences;

- Changes in economic conditions in the U.S. and Europe and the

impact of changes in interest rates;

- Environmental issues and consumer perceptions; and

- The successful integration of recently completed and planned

acquisitions.

Additional detailed information concerning a number of the important factors that could cause results to differ materially from the forward-looking information contained in this release is readily available in the Company's publicly-filed quarterly and annual reports.