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Technico launches global seed potato operations
August 14, 1998

Following the announcement today of Technico's construction of its own TECHNITUBER® seed production facility in China, the Southern Highlands can now boast of a locally developed, spud technology which is being applied globally to the US$100 billion a year, potato industry.

The Hon Michael Egan, NSW Deputy Premier and Minister for State Development, released the news today that Technico, a Southern Highlands Agri-biotechnology company is currently constructing its first stage TECHNITUBER® seed production facility in China. Technico's initial
investment in China will be approximately $5.5 million to construct a TECHNITUBER® seed
production facility with a capacity of approximately 8 million TECHNITUBER® seeds.

Technico is an Agri-biotechnology company based in the Southern Highlands of New South Wales, specialising in the production of seed potatoes. Technico's Chairman, Mr. Anthony Bates said the company was very excited about commissioning the TECHNITUBER® seed production facility and commencing production of TECHNITUBER® seed in China.

Potatoes are generally unable to reliably produce a "true to type" botanical seed and the industry normally sources its seed potato requirements through a vegetative propagation program. The field production program can take up to 5 years to produce high volumes of affordable certified seed. In tropical climates the quality of seed production is adversely affected through disease and climatic challenges which make a multiple generation, seed potato production program virtually impossible.

The TECHNITUBER® seed technology over comes the time barriers and disease challenges
faced by traditional seed production schemes by reducing by at least half the number of field
multiplications required to produce commercial volumes of affordable, early generation seed potatoes.

Bates explained that China is the second largest potato market in the world with an annual production volume in excess of 42 million tonnes and a demand for seed in excess of 2.8
million tonnes - approximately twice the total volume of Australian potato production.

He also added that "Technico is dedicated to the task of taking full advantage of the benefits the technology has for the potato industry not only in China but through out the world."

To achieve this international expansion Technico is very excited with the inclusion of the
TECHNITUBER® seed technology in the Australian Technology Showcase - a premier showcase for newly developing Australian technologies. Mr Bates commended the Department of State Development for its enthusiastic launching of the program and the anticipated benefits from its local and international promotion.

Selection of staff for the new facility is already well advanced with Allan Hendry - previously responsible for implementing the TECHNITUBER® production technology in Australia,
appointed as Manager for the new facilities in China. Randal Jones, Technico's Australasia
Manager said "Technico has already appointed the management staff for the facility and we
have commenced training of our Chinese counter part staff with Ms Qiao Wei Zheng - arriving in
Bowral for a two month training period.

Jones said the China TECHNITUBER® production facility will be constructed in stages. "The
first stage with an initial capacity of 8 million TECHNITUBERS® is due for commissioning in
November 1998. We should have TECHNITUBER® seed available for planting, in China by the
Spring thaw - May 1999 - quite an achieved to have a project completed in China within 14
months of initiation !"

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