EPlcyte Pharmaceutical, Inc. and ProdiGene, Inc. announced today that the two biotechnology companies have entered into a strategic alliance to produce low-cost antibodies in plants. Initially the companies will focus on antibodies for the human and animal health markets, as well as over-the-counter applications.

"This alliance is a natural fit," said Robert Leach, EPlcyte's Chief Executive Officer. "We have
intellectual property and experience in the production of antibodies in plants, and ProdiGene has the genetic tools, working facilities, and expertise to produce transgenic proteins in plants. Together we provide the broadest spectrum of capabilities for the production of low-cost bulk antibodies in plants."

The technology behind the alliance is Plantibodies, which makes it possible to economically
produce antibodies in green plants at an agricultural scale. Leach said, "This technology enables us to produce unlimited quantities of pharmaceutical-grade antibodies and related molecules at prices that are 25 to 100 times less expensive than animal cell culture, while reducing manufacturing capital up to 90 percent."

EPlcyte has exclusive license from The Scripps Research Institute to two issued U.S. patents
covering the expression of antibodies in plants, as well as numerous pending U.S. and foreign
patents. Various products already are under development.

Robert C. Dose, executive vice president of ProdiGene, said, "Our companies are highly
complementary and this strategic alliance will enable us to market our capabilities to third parties for the production of their proprietary antibodies."

Plants are the most efficient bioreactors for the production of complex proteins such as antibodies, and are the only transgenic system capable of producing secretory antibodies, which protect the vulnerable mucous membranes (epithelial tissues) of humans and animals.

An additional agreement between the two companies focuses on the development and production
of EPlcyte's proprietary Transport Molecules (TMs). These molecules transport active therapeutic
drugs specifically to the body's epithelial tissues. TMs are most efficiently produced in plants using the Plantibodies production system. "Our Transport Molecules have the potential to impact a wide range of diseases that affect epithelial tissues, including infections, inflammatory diseases and carcinomas," Leach said.

EPlcyte Pharmaceutical, Inc. is based in San Diego, Calif., and was founded in 1996 by the
inventors of Plantibodies, Drs. Andrew Hiatt and Mich Hem, to develop medical therapies for
diseases affecting mucous membranes.

ProdiGene, Inc., based in College Station, Texas, is a biotechnology company that develops
genetically engineered plants to produce novel recombinant proteins. It has experienced commercial success extracting high-value recombinant proteins from corn, and its large portfolio of patents and broad technical base make it the leading company in this emerging field.

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