Agritope, Inc.  today reported operating results for its second quarter and first half of fiscal 1999 that ended March 31, 1999. The company's net loss was $1.27 million, or $0.31 per share, compared with a net loss of $1.02 million, or $0.25 per share, in the second quarter of fiscal 1998. For the six months ended March 31, 1999, the company reported a net loss of $2.5 million, or $0.62 per share, as compared to a loss of $2.2 million, or $0.67 per share for the six-month period ended March 31, 1998.

Revenues for the quarter and six months ended March 31, 1999 were $424,000 and $659,000,
respectively, representing increases of 79% and 160%, as compared to revenues for the
comparable periods in fiscal 1998. Grant and research contracts resulted in revenues of $164,000
for the most recently ended quarter, an increase of $106,000 as compared to the second quarter
of fiscal 1998. For the six-months ended March 31, 1999, grants and research contracts
produced revenues of $325,000, an increase of $253,000 over the first six months of fiscal 1998.
The increases reflect activity on projects sponsored by the National Institute of Standards and
Technology and the company's principal research partner, Vilmorin Clause & Cie. Agritope's
majority owned grapevine nursery commenced shipment for the 1999 planting season in the
second quarter, resulting in sales of $260,000 for the quarter as compared to sales of $180,000
for the quarter ended March 31, 1998. For the six months ended March 31, 1999, Vinifera sales
were $335,000 as compared to sales of $182,000 for the first six months of the prior year.

Research and development expenses increased $202,000 (37%) and $377,000 (35%),
respectively, for the quarter and six months ended March 31, 1999, as compared to the
corresponding prior-year periods, while selling, general and administrative expenses increased by
$167,000 (22%) and $202,000 (13%), respectively, as compared to the quarter and six months
ended March 31, 1998. Research activity increased, especially with respect to projects under
grants and research contracts. In addition, occupancy expenses increased as a result of the
company's move to expanded research and office facilities in March 1998. Other increases in
operating costs included increased sales activity at Vinifera, non-cash compensation expense
related to stock option awards and legal costs associated with the company's proposed gene
discovery program.

During the second quarter of fiscal 1999, Agritope entered into a letter of intent with
Rhone-Poulenc Plant and Animal Health, a division of Rhone-Poulenc, S.A., to establish a joint
venture to conduct a research, development and commercialization program in the field of
functional genomics. Under the terms of the letter of intent, Rhone-Poulenc will contribute $20
million in specific research funding over five years as well as research facilities, personnel,
expertise and complementary genomics capabilities. Agritope and Rhone-Poulenc will each own
50% of the joint venture. Representatives of Agritope and Rhone-Poulenc are currently engaged
in negotiations regarding the terms of definitive agreements for the proposed joint venture.
Agritope is also discussing research proposals with several prospective project sponsors.

During the second quarter, Agritope also announced that it had decided to sell its controlling
interest in Vinifera. Certain minority shareholders subsequently signed letters of intent pursuant to
which minority ownership of Vinifera would increase from 36% to approximately 50%. The terms
of the letters of intent provide for the minority shareholders to purchase shares of Vinifera capital
stock from Agritope for cash paid over a three-year period. Vinifera would immediately replace a
working capital line of credit currently provided by Agritope with a bank line of credit, guaranteed
by a minority shareholder. The Company intends to complete such transactions in the quarter
ended June 30, 1999. Agritope is also engaged in additional discussions with prospective
investors that would further reduce its ownership in Vinifera.

A tabulation of operating highlights and balance sheet data follows:

Agritope, Inc. is an Oregon-based agricultural biotechnology company that develops improved
plant products and provides technology to the agricultural industry. Vinifera, Inc. offers superior
grapevine plants to the premium wine industry together with disease testing and elimination
services.

Company news release
N1801