Strategic Diagnostics today announced the commercial launch of its test kit to detect Monsanto's Roundup Ready(R) genetic trait used in soybeans. The kit utilizes an immunodiagnostic test strip developed by SDI that employs a specialized antibody, also developed by SDI, to provide a highly specific and sensitive analysis that is suitable for field-based testing applications. The Company had completed the initial product development in March 1999 and since then has been working with initial prospective customers to validate the product under a variety of uses and develop testing protocols that would provide users, and their customers, reliable and statistically meaningful results.

The need for these analytical testing tools has developed rapidly in 1999 as a result of recent GMO regulatory action and market responses, in particular the commercial success of the Roundup(R) genetic technology (over one-half of the 1999 commercial soybean crop in the United States is expected to incorporate this technology) coupled with the development of a second tier in the world soybean markets for non-genetically modified product. For the 1999 growing season, hundreds of farmers have been contracted to grow non-genetically enhanced soybeans. These producers, harvesting over 35 million acres, a large part of which are for export to Europe and Japan, will be required, due to new regulations, to verify the purity of their crops once harvesting begins in July 1999. The development of this non-GMO market has led to new needs to maintain the identity of these products at multiple risk points throughout the distribution systems in world trade. The Company's product provides the farmer and each successive purchaser of these premium products a rapid, easy-to-use test kit that provides a definitive result in under five minutes. The Company believes that the market potential for this product could reach over 25 million tests annually over the next two to three years. The Company currently has set a price range of $1.00 to $5.00 per test depending on the particular testing format.

The Company expected sales of the products to begin in June 1999 to partially meet the initial
demand for this new technology, however, the rapid evolution of foreign policies for GMOs and
changes in acceptable thresholds drove the creation of new testing points in the trade distribution
systems. Following the validation of these testing points, SDI is now able to make this product
available for commercial use in seed production and validated points throughout the world
distribution systems for soybeans.

Due to the delay in the introduction of the Soybean Test kit, revenues are expected to be
approximately $5.5 million for the second quarter, which is less than recently published estimates. Preliminary results show due to effective cost controls, the Company is expected to report earnings for the second quarter consistent with recently published estimates.

Richard C. Birkmeyer, President and CEO of SDI, commented, ``We are thrilled about the
introduction of our Soybean Test Kit. The evolution in the GMO marketplace has increased the
demand for our test kits as it becomes increasingly important to test throughout various points in the distribution chain. Our potential customer base is now extended from primarily seed producers and food processors to include the entire soybean distribution chain. This new industry dynamic, while positive for SDI, makes it slightly more difficult to predict the timing of various product introductions as it is vital to fully validate the use of the tests for market driven applications for the long-term success of GMO testing.''

Strategic Diagnostics is the leading provider of biotechnology-based diagnostic tests for a broad
range of commercial applications. Through its antibody business, Strategic Diagnostics also provides antibody and immunoreagent research and development services. Strategic Diagnostics' 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.

Company news release
N1917