Agritope, Inc. and Rhone-Poulenc Plant and Animal Health, a division of Rhone-Poulenc, S.A. today announced that they have signed a letter of intent to establish a joint venture to conduct a research, development and commercialization program in the field of functional genomics.

The proposed venture will identify, develop and commercialize novel genes expected to be discovered under a recently announced Agritope program called the ACTTAG(TM) Gene Discovery Program. Under the program The Salk Institute of San Diego, California, the University of Edinburgh, Scotland and Agritope 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.

Agritope will contribute technology, research facilities, personnel and expertise related to the ACTTAG Gene Discovery Program. Rhone-Poulenc will contribute $20 million in specific research funding over five years as well as research facilities, personnel, expertise and complementary genomics capabilities. Agritope and Rhone-Poulenc will each own 50% of the joint venture. The joint venture will actively seek additional agreements with third parties to fund projects in return for grants of rights to discoveries in defined fields or territories.

"The formation of this joint venture with Rhone-Poulenc will bring together all the elements necessary for the execution of the ACTTAG program,'' said Adolph J. Ferro, president and chief executive officer of Agritope. "As a leading global life sciences company, Rhone-Poulenc is an ideal strategic partner for Agritope.''

"This joint venture complements the other plant genomics initiatives of Rhone-Poulenc,'' said Alain Godard, chairman and chief executive officer of Rhone-Poulenc S.V.A. "The ACTTAG technology is expected to lead to the discovery of many plant genes which will allow us to develop significant new crop production products.''

Agritope, Inc. is an Oregon-based agricultural biotechnology company that develops improved plant products and provides technology to the agricultural industry.

Rhone-Poulenc Plant and Animal Health, based in Lyon, France, researches, develops and markets a full range of crop protection products and innovative solutions aimed at improving agricultural production worldwide.

Rhone-Poulenc Agro researches, develops and markets products and innovative solutions aimed at improving agricultural production worldwide. The company's 1998 sales turnover stood at FF12.6 billion.

Rhone-Poulenc S.A. is a leading life sciences company, growing through innovations in human, plant and animal health and through its specialty chemicals subsidiary Rhodia. With sales in 1998 of FF86.8 billion (US $15 billion), the company employs 65,000 people in 160 countries worldwide.

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