A joint venture involving two of the world's leading vegetable seed companies has committed $7.5 million over the next five years to develop improved vegetable varieties. Agrinomics LLC, a 50% owned subsidiary of Agritope, Inc. and the Aventis CropScience unit of Aventis, S.A., today announced the research and license agreement with a joint venture formed by Vilmorin Clause & Cie of France and Biotech M.A.H. Plant Genomic Fund of Israel, a Fund managed by a partnership between Hazera Quality Seeds Ltd. and Makhteshim-Agan Industries Ltd. of Israel.

The Vilmorin/Biotech M.A.H. joint venture will sponsor the five-year $7.5 million research program to discover genes that confer desirable traits in certain vegetables. Agrinomics has received a payment of $1.5 million to fund the first year of activity and expects to begin research immediately. Agrinomics will use one-third of the funding to reimburse the Vilmorin/ Biotech M.A.H. joint venture for conducting specified research activities in the program.

"This agreement with Vilmorin and Biotech M.A.H., involving two of the world's leading vegetable seed companies and the world's leading manufacturer of generic crop protection products, is the first third-party research alliance of Agrinomics,'' said Adolph J. Ferro, chief executive officer of Agrinomics "We will be working to improve certain vegetables to reduce crop loss and improve resistance to other environmental hazards. This alliance provides a meaningful commercial outlet for any new vegetable varieties developed from the expected discoveries. Also, Agrinomics will gain the expertise of researchers and plant breeders at Vilmorin, Hazera and Makhteshim.''

"Growers spend $30 billion worldwide every year for crop protection products,'' Ferro added. "Genes discovered in the program are also expected to be useful in a wide variety of crops in addition to the targeted vegetable crops.''

"We believe that this project has the potential to rapidly discover genes that will be useful for improving traits in our vegetable crops,'' said Pierre Lefebvre, chief executive officer of Vilmorin. "The addition of this well-defined functional genomics research project adds a powerful component to the already strong breeding programs at Vilmorin and Hazera.''

"The first objective of the new alliance will be to search for genes that confer resistance to several bacterial pathogens that currently contribute to a significant level of crop losses experienced by vegetable growers,'' said Bertold Fridlender, chief executive officer of the Biotech M.A.H. Plant Genomic Fund. "Later targets may include nematode resistance, viral resistance or drought resistance.''

Agrinomics was formed in July 1999 to identify, develop and commercialize novel genes expected to be discovered under a gene discovery program called the ACTTAG(TM) Gene Discovery Program. ACTTAG utilizes activation tagging, a technique that enables researchers to rapidly discover genes and the traits they confer. Agritope and its academic collaborators will each generate genetically modified seeds that will be screened for a wide variety of traits such as disease resistance, insect resistance, new morphologies, abiotic stress tolerance, improved flowering characteristics, herbicide targets, herbicide tolerance and improved nutritional qualities. Agrinomics plans to form a series of third party collaborations such as the one with the Vilmorin/Hazera joint venture to sponsor specific research in a variety of crops.

Agritope is an Oregon-based agricultural functional genomics and biotechnology company that develops improved plant products and provides technology to the agricultural industry. Its fruit and vegetable division specializes in the development of improved fruit, vegetable and flower varieties. Vinifera, Inc., its majority owned subsidiary, offers superior grapevine plants to the premium wine industry together with disease testing and elimination services.

Based in Lyon, France, Aventis CropScience was formed in December 1999, combining the crop
protection business of Rhone-Poulenc with the crop protection, seeds and crop improvement activities of Hoechst Schering AgrEvo. Aventis CropScience has a global leadership position in crop protection and crop production with an estimated 15% overall global market share. With the industry's most comprehensive product portfolio and the largest research and development budget, Aventis CropScience is ready to help farmers, distributors and processors adapt to today's rapidly evolving marketplace.

Founded in France in 1743, Vilmorin specializes in the worldwide breeding, production and distribution of vegetable and flower seeds to the home garden and professional markets. It is the largest company in the world serving the home garden market and the second largest company in the professional vegetable seed market. Vilmorin's shares are traded on the second marche of the Paris Bourse.

Biotech M.A.H. Plant Genomic Fund of Israel is jointly managed by Hazera Quality Seeds and
Makhteshim-Agan Industries Ltd. Hazera Quality Seeds Ltd. breeds, develops, processes and markets hybrid vegetable and field crop seeds. With more than 60% of its total seed production exported to over 50 countries worldwide, Hazera is Israel's leading breeder, producer and exporter of vegetable and field crop seeds. Hazera's shares are traded on The Tel-Aviv Stock Exchange.

Makhteshim-Agan Industries Ltd., a subsidiary of Koor Industries is the world's leading manufacturer of generic crop protection products. The Company is also engaged in the development, production and marketing of fine chemicals, intermediates, specific aroma chemical, industrial chemicals, antioxidants and nutraceuticals. Makhteshim-Agan's shares are traded on the Tel Aviv Stock Exchange. 

Company news release
N2454