Davis, California
January 7, 2002

AgraQuest, Inc. today announced the exclusive licensing of Muscodor albus and related strains, which are endophytic fungi (living within a plant) that produce gaseous substances, for use as an all-natural fumigant. Gary Strobel, PhD, a professor at Montana State University, discovered M. albus during an expedition in the rainforests of Central America. Late last year, Dr. Strobel's work on M. albus was selected by the editor of Science magazine as the key work in the entire field of microbiology.

"One of the unique biological features of M. albus is that it produces volatile natural compounds that are extremely effective in controlling many plant pathogenic fungi and bacteria as well as microorganisms that are pathogenic to humans," explained Strobel. "I believe this is the world's first mycofumigant."

"I chose AgraQuest as my commercial partner for agriculture and industrial uses because of their core competency in microbial natural products and their proven ability at quickly commercializing microbial products," added Strobel.

"AgraQuest is targeting the same markets as the fumigant methyl bromide -- largely high-value specialty crops including fruits and vegetables," said Jim Chambers, Director of Sales and Marketing, "because the chemical is currently being phased out and AgraQuest already has a presence in these markets through the sale of our Serenade(R) Biofungicide."

Beyond targeting the current uses of methyl bromide, AgraQuest is also targeting the control of mold and bacteria that cause sick building syndrome. This problem occurs when certain types of microorganisms infect buildings and cause health problems including headaches, respiratory troubles, nosebleeds, and memory loss.

AgraQuest is a biotechnology company that focuses on discovering, developing, manufacturing and marketing effective, safe and environmentally friendly natural pest management products for the agricultural and institutional and home markets. AgraQuest is developing and commercializing a pipeline of natural pest management products, including its first product, Serenade(R), and believes that its proprietary technology platform will be the foundation for the discovery and development of natural products for the pest management industry.

Company news release
N4081