Ecogen Inc., a leading developer of microbial biopesticides, announced today that it has signed a letter of intent with FMC Corporation to acquire exclusive marketing rights for their Sper Sal® Soil Conditioner. Under the terms of the letter of intent, Ecogen will have the exclusive right to market Sper Sal in the U.S. and Mexico. Both parties have agreed to discuss the expansion of the marketing territory to other arid crop growing regions outside of the U.S. and Mexico. This agreement marks Ecogen's initial effort to expand into the soil amendments market. Soil amendments include products that physically or biologically modify soil structure, soil chemistry or soil biology for improved plant growth.

Sper Sal is a unique patented technology that functions as a soil-conditioning agent to minimize the effects of soil salts on plant germination and growth. Sper Sal improves the solubility of soil borne calcium and magnesium salts through a mechanism known as dispercancy. The end result is an increase in the leaching efficiency of irrigation water. Salts are moved away from the root zone to promote germination, reduce stress on transplants and improve water uptake. Sper Sal is applied in irrigation water, in combination with liquid fertilizers or as a broadcast spray on the soil surface.

Sper Sal is used on a variety of crops including vegetables, trees and vines. ``Adding Sper Sal to
Ecogen's product line increases our presence in key vegetable, tree and vine markets in Mexico
and the western and southwestern U.S., where Ecogen presently has a market focus selling
CRYMAX® WDG bioinsecticide and AQ10® biofungicide products,'' said James P. Reilly, Jr.,
Ecogen's Chairman and CEO. ``By providing growers with products that improve soil structure and
soil chemistry, Ecogen can provide products that increase plant health to complement our portfolio of microbial bioinsecticides and biofungicides.''

Ecogen and FMC's Agricultural Products Group have previously announced collaborations
designating FMC as Ecogen's exclusive distributor for their Lepinox® bioinsecticide in the U.S.,
east of the Rocky Mountains, and in Mexico and Latin America. FMC Corporation is one of the
world's leading producers of chemicals and machinery for industry and agriculture. FMC employs
approximately 17,000 people at 100 manufacturing facilities and mines in 22 countries. The
Company divides its business into three segments: Performance Chemicals, Industrial Chemicals
and Machinery and Equipment.

Ecogen is a leader in the development of natural microbial pesticide products for the control of
plant disease and insect pests. Ecogen's growing portfolio of products has been developed to
address the concerns of pest management and the issues of chemical residues on fruits, vegetables and other crops. The Company's products include: two biofungicides -- Aspire® for post-harvest rot disease and AQ10 for powdery mildew -- as well as its Bt bioinsecticides -- CRYMAX, to control caterpillars on fruits and vegetables, Condor®, to control caterpillars on cotton, other row crops and in forestry, and Lepinox, to combat caterpillars in cotton and other row crops, turf and pasture. Additional bioinsecticides under development include Cruiser®, an insecticidal nematode product for soil applications and CryStar(TM), a Bt bioinsecticide for mosquito control.

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