Strategic Diagnostics, Inc. today announced it has entered into diagnostic test development and licensing agreements with Monsanto Company, one of the world's major agricultural biotechnology companies.

In collaboration with Monsanto, SDI is developing test kits designed specifically for detecting the presence of genetically modified traits in crops that may have been used as food ingredients. Under the agreements, Monsanto is licensing the use of their proprietary technology to SDI for the manufacture and sale of these test kits to food processors, their suppliers and regulatory bodies responsible for overseeing the labeling of these products.

SDI recently introduced the Soya Test Kit to detect the presence of Monsanto's Roundup Ready® herbicide-tolerant trait in soya food ingredients. Shipments of the Soya Test Kits began in the first quarter and SDI expects growth throughout 1999. The development of a Maize Test Kit, which will detect Monsanto's YieldGard® insect-protected trait in corn-based food ingredients is underway. The latter test will be part of a multi-trait test kit that will detect all the Genetically Modified traits that have been approved in the European Union. Therefore these tests will conform to the European labeling regulations for corn-based food ingredients.

In March 1999, the European Union food labeling regulations became effective for foods derived from genetically modified seeds. To enable consumer choice in selecting food products, the European Commission now requires food companies to label products containing foods or food ingredients derived from Genetically Modified Organisms (GMO). SDI's Soya Test Kits have already been validated by the Joint Research Centre's Food Products Unit of the Institute for Health and Consumer Protection as a test for compliance with the GMO food labeling regulations within the EU member countries.

SDI previously announced that it has entered into an agreement with GeneScan Europe, a global participant in the field of molecular food testing, for the distribution of the Soya Test Kits. The agreement gives GeneScan the exclusive distribution rights for the test kits within Germany and on a non-exclusive basis throughout the other EU countries excluding the United Kingdom.

According to Richard C. Birkmeyer, President and CEO of SDI, "We believe these agreements are a continuation of the strong relationship we have had with Monsanto for some time. The GMO food labeling regulations within the EU member countries have created a significant market opportunity. These kits represent a natural extension of SDI's immunoassay-based testing technology and market position as a leading developer and supplier of rapid tests for genetically engineered traits used in new crop breeding and seed quality control.''

Monsanto, a leader in agricultural biotechnology, is taking the lead in providing access to the
highest quality testing systems and technologies. According to Dr. Roy Fuchs, Director of
Regulatory Science, "Monsanto is committed to providing the best tools available to our partners and customers to comply with these new regulations. We chose SDI for the development of test methods due to their extensive expertise in immunoassay development and production. Monsanto supports the use of immunoassays based on a long history of reliable, accurate, cost effective results. The availability of this enabling technology reinforces our commitment to our customers, our partners and the consumer choice.''

As a life sciences company, Monsanto is committed to finding solutions to the growing global
needs for food and health by sharing common forms of science and technology among agriculture, nutrition and health. The company's 30,000 employees worldwide make and market high-value agricultural products, pharmaceuticals and food ingredients.

SDI is a leading provider of biotechnology-based diagnostic tests for a broad range of agricultural, industrial and water-treatment applications. Through its TSD BioServices subsidiary, SDI also provides antibody and immunoreagent research and development services. SDI's test kits are produced in a variety of formats suitable for field and laboratory use, offering advantages of accuracy, cost-effectiveness, portability, and rapid response.

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