BIONOVA Holding Corporation announced today its second quarter financial results and certain steps it has taken on its business restructuring.

For the quarter ended June 30, 2000, Bionova Holding reported a net loss of $14.4 million, or $0.61 per share, as compared with a loss of $8.3 million, or $0.35 per share in 1999. Total revenues for the quarter were virtually unchanged from prior year at $70.2 million. The higher loss in the second quarter of 2000 as compared with the second quarter of 1999 was attributable primarily to restructuring charges associated with the Company's fresh produce business and higher net interest costs.

In May, the Company announced its intent to concentrate on its technology business and pursue alternatives for the fresh produce business, including the possible divestiture of parts or all of this business segment. Savia, S.A. de C.V., the Company's parent, recently has expressed an interest to a special committee of the Company's independent directors with respect to Savia's potential acquisition of the Company's fresh produce business. In the interim, the Company has begun to take steps to limit the expenses, reduce the agricultural risk, and reduce the working capital requirements associated with its fresh produce operations. During the second quarter Agrobionova, S.A. de C.V., the Company's agricultural subsidiary in Mexico, shut down its growing operations in Culiacan, Sinaloa. Agrobionova has contracted with other growers in the region to supply it with produce during the winter season, which will then be packaged in Agrobionova's packing facilities and sold through the Company's distribution subsidiaries. A $1.5 million charge was taken in the quarter for severance payments to employees and other costs associated with this shut down. In addition, Bionova Produce, Inc., the Company's Arizona-based distribution company, decided to terminate its contract with a Mexican grower of mangoes, papaya, and other fruit products on which it had lost money over the past two years. A $2.0 million charge was taken to terminate this activity. These two charges totaling $3.5 million accounted for the majority of the operating loss of $5.0 million recorded by the fresh produce
business in the quarter. The remaining balance of the loss stemmed directly from the continuing poor results of Culiacan as the growing season concluded in April prior to its shut down in May.

Net interest expense (interest income less interest expense) increased by $1.9 million as the Company recorded a $2 million non-cash charge in the second quarter of 2000 to recognize the remaining balance of up front fees paid for the Floating Rate Note facility that was retired on April 13 and lower interest income due to a reduction in grower receivables.

Bionova Holding Corporation is a leading biotechnology company focused on using its proprietary genetic engineering and plant science technologies to develop and improve the quality and agronomic traits of fruits and vegetables. Through its fresh produce growers and distribution companies, Bionova Holding is known for its premium Master's Touch® and FreshWorld Farms® brands. Bionova Holding and its subsidiaries have strategic alliances and licensing agreements with some of the world's leading agricultural companies, with its affiliates, including Seminis Vegetable Seeds, Inc., with value-added producers and marketer s, and withbiotechnology research groups. Bionova Holding Corporation is majority owned by Mexico's SAVIA, S.A.
de C.V., whose subsidiaries include the world's biggest vegetable seed company.

Company news release
N2870