BIONOVA Holding Corporation today reported financial results for the second quarter ended June 30, 1999. Bionova reported a net loss of $8.3 million for the second quarter of 1999, or $0.35 per
share, compared with a loss of $5.3 million, or $0.29 per share for the second quarter of 1998.

The Company explained there were four principal factors that caused the loss to be higher in the
second quarter of 1999 as compared with the same quarter in 1998. Administrative expenses
increased by $0.6 million due to annual salary and wage increases granted to employees in the
Company's farming operations, which was consistent with the rate of inflation in Mexico over the
past year. Research and development expenses increased by $0.3 million as activities continued to expand on the Company's strawberry program. Net interest expense (interest income less interest expense) increased by $2.0 million from the first quarter of 1998 to the first quarter of 1999 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. On the positive side there was a $0.9 million reduction in foreign exchange losses recorded in the quarter. Finally, the proportion of the losses in the quarter allocable to minority interests was $0.9 million lower in the second quarter of 1999 versus 1998 due to better performance by subsidiaries that have minority interest ownership, and in particular, Interfruver, S.A. de C.V., the Company's Mexican distribution subsidiary.

Total revenues of Bionova declined 9% from $77.0 million in the second quarter of 1998 to $70.4
million in the second quarter of 1999. This decline was entirely attributable to the discontinuation of a Florida grower which sold its produce through FreshWorld Farms, Bionova's distributing company based near Philadelphia, Pennsylvania. Very little income was generated from this grower relationship, and FreshWorld Farms has been in the process of restructuring to put it on a sustained track for growth and increased profit in the future. Aside from this impact, sales of Bionova's other distribution companies increased by 11.6% in the second quarter of 1999 as compared with the same quarter of 1998.

While gross profit was flat from the second quarter of 1998 to the second quarter of 1999, weather
continued to affect the results of farming operations in Mexico. Agrobionova, S.A. de C.V.,
Bionova's Mexican farming company, sustained a loss at the gross profit line of $2.2 million in the
second quarter of 1998 due to the final results of its Culiacan operations and its joint ventures in
Sinaloa. The Company's Hermosillo and Baja California operations reported a profit in the quarter.
This compares with a loss of $2.8 million at the gross profit line in the second quarter of 1998 when the Company recorded a charge of $2.5 million to write down receivables associated with two of the Company's farming joint ventures. The gross profit of DNA Plant Technology declined from the second quarter of 1998 to the second quarter of 1999 by $0.6 million due to lower contracts and royalty income.

Due to the losses incurred by the Company during the first and second quarters of 1999, Company management has determined that further capitalization is required to provide the necessary resources to carry forward its business plan and to bring it into compliance with the Nasdaq's listing requirements. Company management recently reviewed this situation with its Board of Directors and Savia's management and is in the process of evaluating alternative courses of action to deal with this issue. The Company stated further announcements will be forthcoming within sixty days.

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 has strategic joint ventures and licensing agreements with some of the
world's leading agricultural companies, with its affiliates, including Seminis Vegetable Seeds, Inc., the world's largest vegetable seed company, 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.

All statements in this press release other than statements of historical facts are ``forward-looking''
statements, including without limitation statements regarding the Company's financial position,
business strategy, plans and objectives of management, and industry conditions. Although the
Company believes that the expectations reflected in such forward-looking statements are
reasonable, it can give no assurance that such expectations will prove to be correct. The following
factors, among others, may affect the Company's actual results and could cause such results to differ materially from those expressed in any forward-looking statements made by or on behalf of the Company: competitive factors, agribusiness risks, governmental and economic risks associated with foreign operations, public acceptance of genetically-engineered products, commercial success of new products, proprietary protection of and advances in technology, possible need for additional bank financing and equity capital, as well as the ability of the Company to successfully integrate recent acquisitions and its management information systems and controls. Further information on the factors that could affect the Company's financial results is contained in the Company's Form 10-K for the year ended December 31, 1998 which has been filed with the Securities and Exchange Commission.

Company news release
N2014