College Station, Texas
August 12, 2002

- Could address common cause of developing world gastrointestinal distress

ProdiGene, Inc. announced today that it will begin a Phase I clinical trial in cooperation with the National Institutes of Health's (NIH) National Institute of Allergy and Infectious Diseases (NIAID), studying the safety and immunogenicity of an oral vaccine against Traveler's Diarrhea, a condition caused by Enterotoxigenic E. coli. This vaccine is produced using ProdiGene's proprietary transgenic plant technology and delivered using the Company's patented oral vaccine platform.

Under the agreement, NIAID will fund the trial and ProdiGene will supply the corn vaccine. In addition to funding the trial, NIAID will manage the trial and sponsor the submission of an Investigational New Drug application with the Food and Drug Administration.

"ProdiGene is very pleased that the NIAID has chosen to collaborate with us in this Phase I trial designed to test the Company's patented oral vaccine technology in combination with the Company's ability to produce recombinant proteins in corn," stated Anthony G. Laos, President and Chief Executive Officer of ProdiGene. "This is the first time that ProdiGene will use its oral vaccine technology in humans, an event which can have far reaching consequences for the Company and the medical community, particularly in developing countries."

About Enterotoxigenic E. coli (ETEC)

ETEC, found globally, are bacteria strains that cause symptoms commonly referred to as "Traveler's Diarrhea." ETEC strains carry a heat labile toxin that is comprised of two subunits, "A" and "B." The B subunit, LtB, alone is non-toxic and does not cause the symptoms of ETEC. However, LtB is known to produce an antibody response in humans that is expected to protect the body against Traveler's Diarrhea. ETEC is a leading cause of morbidity and infant mortality in developing countries and is also the main cause of diarrhea in travelers to developing countries.

About Oral Vaccines

ProdiGene's vaccines are antigens produced using its proprietary transgenic plant technology and then delivered using its patented oral vaccine platform. Oral vaccines produced using the Company's technologies could take the form of a prescribed oral edible product, and thus are easy to administer. Oral vaccines are not only more convenient than alternate forms of administration, such as injection, but are also less costly to administer and can help make vaccination more widely available, particularly in developing countries. ProdiGene's oral vaccine patent was voted one of the "five patents that will transform business and technology" by the MIT Technology Review magazine in May 2001.

ProdiGene is a private biotechnology company pioneering the use of transgenic plants to produce recombinant proteins for the pharmaceutical, animal health and industrial protein markets. The Company was the world's first to successfully commercialize a recombinant protein produced from transgenic plants. Proteins produced from transgenic plants can provide significant economic and safety benefits over other protein manufacturing processes. With more than 18 products in development, ProdiGene is redefining the protein manufacturing industry and building acceptance of large scale, plant based protein manufacturing.