Strategic Diagnostics Inc. today announced that it has entered into an agreement with Takara
Shuzo Co., Ltd., Biomedical Group for the Company's GMO Check (TM) test kits, used for the
detection of Genetically Modified Organisms (GMOs) in grain and food ingredients. The agreement provides for Takara Biomedical to utilize the Company's GMO Check (TM) product in the course of its commercial testing business within Japan and Korea. The agreement also provides for Takara Biomedical to distribute the kit, on a non-exclusive basis within Japan and Korea.

Takara Biomedical is a division of the $1.5 billion Japanese beverage company, Takara Shuzo Co., Ltd. Takara Biomedical has been a leading supplier, manufacturer and distributor of research
products and gained over 50% of the domestic market of reagents for use in genetic engineering
research, such as PCR related enzymes and kits, restriction endonucleases and modifying enzymes. Also, its success in offering many types of service business making Takara Biomedical a comprehensive supplier to the biotech industry. Takara Biomedical provides qualitative and quantitative detection of genetically modified organisms in food using SDI GMO Check(TM) test kit and its own developed PCR assay as well as advisory services. Labeling of genetically modified foods such as soybeans, corn and potatoes will be mandatory in Japan by April 2001. The offering of the SDI GMO Check (TM) test kit will ensure that Takara Biomedical is in compliance with these laws well before it is required. Corn and rapeseed may be included in the inspections as well.

A Takara Biomedical spokesman stated, "The addition of the Strategic Diagnostics rapid test kit
allows us to offer our customers the prompt turnaround that they need in the import market. We can offer the GMO Check (TM) test kit for the quantitative determination of genetically modified
organisms in the raw agricultural commodity (soybeans), and food fractions (flour, protein
concentrate etc.). The specificity and reliability of these tests will allow us to offer state-of-the-art
technology to our customers. We believe that the pending labeling regulations from MAFF and the Japanese consumer's right to choose will create a large market potential for this testing. We will continue to offer our PCR assay as a test for finished food products. With both of these methods available, our customers now have the full range of testing options. Our current services will be enhanced by this new product and service offering.''

According to Richard C. Birkmeyer, President and CEO of SDI, "The alliance with Takara
Biomedical also allows SDI to benefit from Takara Biomedical's relationships with the import and
food industries and instantly gives us a strong presence in Japan and Korea's growing market for
GMO food testing. We believe the partnership between SDI and Takara Biomedical will be very
beneficial for both companies. Takara Biomedical will now be able to offer their customers the
fastest, most cost-effective solution to facilitate compliance requirements with the GMO food labeling regulations as they are enacted in Japan and Korea.''

SDI is a leading provider of biotechnology-based diagnostic tests for a broad range of agricultural,
industrial and water-treatment applications. Through its antibody division, Strategic BioSolutions, the Company also provides antibody and immunoreagent research and development services. SDI 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. GMO Check (TM) is a pending trademark for SDI.

Company news release
N2107