Bionova Holding Corporation today reported financial results for the third quarter ended September 30, 1999. Bionova Holding's revenues increased by 18% from $43.9 million to $51.8 million from the third quarter of 1998 to the third quarter of 1999. Bionova also reported a net loss of $11.2 million for the third quarter of 1999, or $0.48 per share, compared with a loss of $8.2 million, or $0.45 per share for the third quarter of 1998.

The higher loss was attributed to higher interest expense due to increased loan balances and the higher interest rates the Company has incurred following the long-term financing arrangement concluded in the first quarter of this year. Interest expense increased by $2.7 million from the third quarter of 1998 to the third quarter of 1999.

The increase in revenues was driven by the increase in Bionova's Canadian and Mexican distribution companies, which achieved sales gains of 50% and 14%, respectively. Bionova Holding's operating loss increased from $7.7 million to $8.1 million. The significantly improved gross margins in the distribution businesses were offset by higher administrative expenses and continuing losses in the farming business. The higher administrative expenses resulted from increased legal expenses, systems activities, the addition of sales and marketing staff recruited in late 1998 and early 1999 to support sales expansion programs, and salary and wage increases granted to employees in Mexico, which was consistent with the rate of inflation in Mexico over the past year. Extremely competitive pricing for tomato products and continuing unfavorable weather conditions that affected crop yields were responsible for the higher loss in the farming business.

Bionova Holding continued to make progress in its efforts to establish technology partnerships and alliances during the quarter. The Company announced that VPP, its subsidiary focused on the development and application of genetic engineering and transformation technologies in vegetatively propagated plants, recently signed an agreement within the banana industry to develop products that are resistant to Black Sigatoka. The annual cost of control measures and crop losses associated with this disease is estimated at $150 million. The agreement calls for a collaborative research and development effort that will result in research milestone payments to VPP.

Bionova Holding also announced that Mr. Joaquin Preciado, the Company's principal officer for
agricultural farming operations, recently passed away. Mr. Jorge Fenyvesi, Bionova Holding's
Executive Vice President in charge of research and development, has assumed, in addition to these duties, executive responsibility for the Company's farming operations.

The Company stated that its management and the Board of Directors are continuing to review
Bionova Holding's strategic alternatives and approaches to improve the capitalization of the company.

Bionova Holding Corporation is a leading biotechnology company focused on using its proprietary
genetic engineering and plant science technologies to develop and improve the quality and agronomic traits of fruits and vegetables. Through its fresh produce growers and distribution companies, Bionova Holding is known for its premium Master's Touch® and FreshWorld Farms® brands. Bionova Holding and its subsidiaries have strategic alliances and licensing agreements with some of the world's leading agricultural companies, with its affiliates, including Seminis Vegetable Seeds, Inc., with value-added producers and marketers, and with biotechnology research groups. Bionova Holding Corporation is majority owned by Mexico's SAVIA, S.A. de C.V., whose subsidiaries include the world's biggest vegetable seed company.

Company news release
N2225