American Home Products Corporation today announced a restructuring of its Cyanamid Agricultural Products (Cyanamid) business to improve the effectiveness and efficiency of this business unit in light of current conditions in the global farm economy. As previously announced, AHP has been evaluating strategic alternatives for this business unit and this process is currently underway.

The restructuring will be accomplished through revisions in the practices used by Cyanamid to sell, market, manufacture and distribute products to the global farm market, realignment of Cyanamid's research activities and the repurchase of selected U.S. field soybean herbicide inventory from the trade. The actions being taken include approximately 700 position eliminations and certain facility closings worldwide. Third quarter 1999 earnings results will reflect special charges and the cost of the inventory repurchase for an aggregate impact of $330 million (before taxes) or $0.17 per diluted share ($219,900,000 after-tax).

The inventory buyback is due to changes in distribution and is also in preparation for the launch of
new U.S. soybean herbicide premixed products containing glyphosate and Cyanamid's
imidazolinone chemistry. As previously announced, Cyanamid has applied for U.S. Environmental
Protection Agency registration for its new proprietary imidazolinone and glyphosate herbicide
premixed products. Subject to obtaining approval, Cyanamid will market these products to be used over the top of Roundup Ready® soybeans, beginning with the 2000 season.

American Home Products Corporation is one of the world's largest research-based pharmaceutical and health care products companies. It is a leader in the discovery, development, manufacturing and marketing of prescription drugs and over-the-counter medications. It is also a global leader in vaccines, biotechnology, agricultural products, and animal health care.

Company news release
N2160