DNAP Holding Corporation (NASDAQ:DNAP - news) announced today that its research and technology subsidiary, DNA Plant Technology Corporation, completed an agreement to
license its Transwitch® technology for the suppression of genes in plants to Novartis Seeds AG.

Under the agreement DNA Plant Technology grants Novartis a non-exclusive license for the use of this technology in all crops other than ornamental plants. In consideration of the grant of this license DNA Plant Technology has received a one-time payment and will receive royalties on the net sales of products sold under this license.

DNAP Holding also announced the completion of a $30 million one-year term credit commitment with the Bank of Montreal [NYSE:BMO - news]. This loan facility is guaranteed by DNAP Holding's parent company, Empresas La Moderna, S.A. de C.V. (NYSE: ELM/ADR). The interest rate assigned to this credit commitment is LIBOR plus 5% or prime plus 2.5%; its continued funding is subject to the maintenance of certain financial and other covenants by both DNAP Holding and ELM. DNAP Holding intends to use the proceeds of this loan to make fixed asset and working capital investments, to make acquisitions, to pay down some of the company's debt with ELM, and in the general operations of the Company.

``We are quite pleased to have consummated this technology arrangement with Novartis,'' stated Bernardo Jimenez, Chief Executive Officer of DNAP Holding. ``Transwitch® continues to be a very significant asset of the company, and we hope to continue to reap financial rewards from it in the future.''

``We are also happy to have completed the financing facility with the Bank of Montreal to assure the company will have the necessary funds to make investments in its operations and for appropriate acquisitions as they emerge,'' he added.

DNAP Holding Corporation is a leading biotechnology company that develops and applies plant science capabilities to improve the quality and agronomic traits of fruits and vegetables, so as to capture value through its vertically integrated fresh produce company, as well as strategic relationships with several of ELM's subsidiaries, and with value-added producers and marketers.

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