Oakland, California
April 20, 1999DNAP Holding Corporation announced today that unfavorable
weather conditions in the state
of Sinaloa, Mexico had a significant impact on its revenues and profit in the first
quarter of 1999.
Temperatures in the region were much cooler than normal. These weather conditions, which
began in late December, have persisted into April and caused a decline in average
production yields during the winter growing season. As of March, the Company still
anticipated the 1999 first quarter production to be comparable to last year's levels.
These same weather conditions also affected the quality of the product causing more of the
product to be sold in Mexico rather than in the United States and Canada, which typically
deliver higher prices than Mexico. As a result of the continuation of the cooler weather
into April, the Company has reassessed its production and revenue expectations and will
report a significant operating loss for the quarter. DNAP expects to release its financial
results for the first quarter on or about April 26.
DNAP 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, DNAP is known for its premium Master's Touch® and FreshWorld
Farms® brands. DNAP has strategic joint ventures 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. DNAP Holding Corporation is majority owned by Mexico's SAVIA, S.A. de
C.V., formerly known as Empresas La Moderna S.A. de C.V., whose subsidiaries include the
world's biggest vegetable seed company.
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