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Diatect launches initiative for organic grain and rice storage as traditional insecticides banned for food storage use

Boise, Idaho
July 31,  2001

Diatect Inc. (OTC Bulletin Board: DTCT) today announced the launch of a new sales and marketing initiative aimed at the multi-billion dollar organic rice and grain storage market. The company is a
leading producer of non-toxic insecticides that are safe.

The new initiative follows increasing questions and concerns about the use of traditional organophosphate-based pesticides that are increasingly regarded by environmentalists and some growers as unacceptable for use with stored food materials.

Diatect's Diatect(TM) V product is the only Environmental Protection Agency (EPA) labeled Pyrethrum insecticide specifically approved for use with organic rice storage. Diatect V has already been state-certified for organic use in 30 states. Available nationwide, Diatect can be applied to organically grown food crops the same day as harvested. It is blended from natural ingredients and can be applied wet or dry to control major insect problems.

Sales of organic products have grown rapidly across the United States and now represent an estimated $9.6 billion retail market.

Organic growers are threatened with various pests that contaminate rice and grains stored in giant silos and other facilities. Concerns about unhealthy collateral effects from organophosphate-based pesticides have resulted in the removal of these pesticides from EPA approval for certain uses such as rice storage.

Diatect EVP Jay Downs said, "We are now receiving our first orders from major organic rice, grain and food producers. There is growing recognition in the organic industry that safety in food products for human consumption is related to financial success and the support of environmental groups. The use of non-toxic pesticides such as Diatect V can completely guarantee that consumers will not be harmfully exposed to chemicals that have traditionally been used in fighting crop-destroying insects."

"We believe this could be a significant market for Diatect," said Downs. "We are now accelerating our marketing efforts to meet this obviously growing need."

The Natural Resources Defense Council sued the EPA about the use of certain pesticides citing concerns about human health. A settlement resulted in a court-imposed schedule for implementing restraints on the use of certain pesticides under the Food Quality Protection Act. The EPA is currently moving forward on conducting a cumulative risk assessment on a wide range of organophosphates.

Diatect products are an EPA labeled new generation of non-toxic insecticides marketed for sustainable and organic food production. The company's Results(TM) line of products for fire ant, tomato and garden, rose and floral and indoor markets are packaged for the over-the-counter market and consumer use.

Diatect International Corporation, an insecticide and natural resource company headquartered in Boise, Idaho, produces Diatect and Results Insecticide products. These products and services are sold into the multi- billion dollar agriculture, industrial, home and garden industry worldwide. The company is dedicated to protecting the earth's environment and its inhabitants by producing registered EPA national insecticide products that can be used to safely eliminate most harmful insects in a cost-effective manner.

For further information contact Executive Vice President Jay Downs at (208) 342-2273 or email diatect@diatect.com or Frank Hawkins or Julie Marshall, Hawk Associates, at (305) 852-2383. Email: info@hawkassociates.com. Detailed information about Diatect International Corporation can be found on the website www.diatect.com. Copies of Diatect press releases, SEC filings, current price quotes, stock charts and other valuable information for investors may be found on the website:
www.hawkassociates.com/diatect.

Company news release
N3691

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