Agritope, Inc. today reported operating results for its first quarter of fiscal 1999 that ended December 31, 1998. The company's net loss was $1.26 million, or $0.31 per share, compared with a net loss of $1.23 million, or $0.45 per share, in the first quarter of fiscal 1998. Revenues in the more recent quarter increased to $235,000 from $16,000 in the first quarter of fiscal 1998.

Research and development expenses increased 33%, or $175,000, and grant and contract
revenues increased $147,000 for research performed under projects funded by Vilmorin, Clause
& Cie and the National Institute of Standards and Technology. Selling, general and
administrative costs increased 4%.

After the end of the quarter, the company announced execution of a letter of intent with
Rhone-Poulenc to establish a joint venture that will identify, develop and commercialize novel
genes expected to be discovered under a recently announced Agritope program called the
ACTTAG 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.

Pursuant to the terms outlined in the letter of intent, 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.

In recognition of the significant amount of management attention that will be required for the
functional genomics initiative, Agritope has decided to sell some or all of its 64% interest in
Vinifera, Inc. Vector Securities International, Inc. has been engaged to assist with the sale of
Agritope's interest in Vinifera. The company is evaluating a proposal from certain minority
shareholders. Proceeds from sale of the interest in Vinifera, if any, would be used primarily to
fund additional research and for general corporate purposes.

"Vinifera has made excellent progress in developing a high-quality nursery operation and has
achieved increased sales each year since commercial production commenced in 1996. It is
well-positioned to function as an independent enterprise,'' said Adolph J. Ferro, president and
chief executive officer of Agritope. "In the year since Agritope's spin-off, we have significantly
expanded the scope of our research operations beyond our traditional emphasis on
longer-lasting fruits and vegetables. Now, with our proposed functional genomics program, it is
clear that full management attention needs to be directed to research. Disposition of our interest
in Vinifera will free-up both management time and capital.'' Ferro added that Agritope intends to
continue to provide disease diagnostics services and research to Vinifera on a contract basis.

A tabulation of operating highlights and balance sheet data follows:

Agritope, Inc. is an Oregon-based agricultural biotechnology company that develops improved
plant products and provides technology to the agricultural industry. Vinifera, Inc. offers superior
grapevine plants to the premium wine industry together with disease testing and elimination
services.

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