Press Release

Dividend completes plan to return more than $750 million to shareholdersMARYSVILLE, Ohio, Feb 16, 2007 /PRNewswire-FirstCall via COMTEX News Network/ -- The Scotts Miracle-Gro Company (NYSE: SMG), the world's leading marketer of branded consumer lawn and garden products, announced today that its Board of Directors has declared a special one-time cash dividend of $8 per share payable March 5, 2007 to shareholders of record February 26, 2007. Combined with the recently completed modified Dutch auction tender offer, in which the Company expects to purchase $245 million worth of common shares, ScottsMiracle-Gro will have completed its plan to return approximately $750 million to its shareholders.

The two transactions are being funded through increased borrowings under the Company's new $2.15 billion senior secured credit facilities.

"Our recent actions should be viewed as a sign of confidence in the continued success of our business," said Jim Hagedorn, chairman and chief executive officer. "Whether by returning cash to shareholders, achieving a more efficient capital structure, driving growth in our existing portfolio or investing in new growth opportunities, we remain focused on driving shareholder value."

In December, the Company also outlined financial goals for the balance of the strategic planning period ending in 2011 that include annual sales growth of 5 to 7 percent, annual net income growth of 10 to 15 percent and annual improvements in return on invested capital (ROIC) of 30 to 50 basis points.

"We have maintained the financial flexibility to continue to fund our growth initiatives and service our debt while providing sufficient room to deal with unforeseen contingencies," said Dave Evans, executive vice president and chief financial officer. "Following the positive outcome of our strategic planning process, we believe we have created a more efficient capital structure, one that, in addition to allowing us to return cash to shareholders, also will lower our overall cost of capital and increase economic value."

Statement under the Private Securities Litigation Act of 1995: Certain of the statements contained in this press release, including, but 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 are forward looking in nature. Actual results could differ materially from the forward looking information in this release, due to a variety of factors, including, but not limited to:

Adverse weather conditions could adversely affect the Company's sales and financial results;
• The Company's historical seasonality could impair the Company's ability to pay obligations as they come due and operating expenses;
• The Company's substantial indebtedness could adversely affect the Company's financial health;
• Public perceptions regarding the safety of the Company's products could adversely affect the Company;
• The loss of one or more of the Company's top customers could adversely affect the Company's financial results because of the concentration of the Company's sales to a small number of retail customers;
• The expiration of certain patents could substantially increase the Company's competition in the United States;
• Compliance with environmental and other public health regulations could increase the Company's cost of doing business; and,
• The Company's significant international operations make the Company more susceptible to fluctuations in currency exchange rates and to the costs of international regulation.

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

About ScottsMiracle-Gro

With more than $2.7 billion in worldwide sales and more than 6,000 associates, The Scotts Miracle-Gro Company, through its wholly-owned subsidiary, The Scotts Company LLC, is the world's largest marketer of branded consumer products for lawn and garden care, with products for professional horticulture as well. The Company's brands are the most recognized in the industry. In the U.S., the Company's Scotts(R), Miracle-Gro(R) and Ortho(R) brands are market-leading in their categories, as is the consumer Roundup(R) brand, which is marketed in North America and most of Europe exclusively by Scotts and owned by Monsanto. The Company also owns Smith & Hawken, a leading brand of garden-inspired products that includes pottery, watering equipment, gardening tools, outdoor furniture and live goods. In Europe, the Company's brands include Weedol(R), Pathclear(R), Evergreen(R), Levington(R), Miracle- Gro(R), KB(R), Fertiligene(R) and Substral(R). For additional information, visit us at www.scotts.com.

Contact:
Jim King
Vice President
Investor Relations & Corporate Communications
937-578-5622

SOURCE The Scotts Miracle-Gro Company

Jim King, Vice President, Investor Relations & Corporate Communications, of The Scotts Miracle-Gro Company, +1-937-578-5622

http://www.scotts.com