Ecogen, Inc., a leading developer of microbial biopesticides, announced today that it has entered into a three-year agreement with Plant Health Care, Inc. for Ecogen to market Plant Health Care's mycorrhizal fungi and rhizosphere bacteria products for use in agricultural markets, including tree fruit, nuts, vines, berries and vegetable crops. The agreement is exclusive for states in the western United States and non-exclusive in the remainder of the country. This agreement represents an expansion of Ecogen's presence in the soil amendments market.

Ecogen also announced today that it has signed a final agreement to acquire marketing rights for FMC's Sper Sal(R) soil amendment product. Ecogen announced in March that it had signed a letter of intent to acquire such marketing rights. Sper Sal utilizes a unique patented technology that minimizes the effect of soil salts on plant germination and growth. The products covered under the Plant Health Care agreement are Mycor(TM) VAM Grape and Berry Root Dip(TM), Mycor(TM) Grape and Berry Transplant Inoculant(TM), and Mycor(TM) VAM Cocktail -- Fruit and Nut Root Dip(TM). Mycorrhizal fungi are unique root-inhabiting fungi that colonize outside (ectomycorrhizae) or inside (endomycorrhizae) fine absorbing plant roots to obtain essential organic chemicals. In exchange, the fungi extend vegetative strands (mycelia) far into the soil to extract water and essential elements and share them with their host. Certain of the products also contain rhizosphere bacteria that enhance plant activity by stimulating growth and nutrient absorption in the root system, and are largely responsible for soil health. Plants treated with these soil amendment products are more productive and better able to withstand poor growing conditions.

The use of mycorrhizal fungi is based largely on research begun 40 years ago by Dr. Donald H. Marx, formerly with the U.S. Forest Service. Dr. Marx continues his work as Chairman and Principal Scientist of Plant Health Care. Initial use of this technology was in land reclamation, followed by use in the landscape industry. The integration of mycorrhizal fungi into production of
permanent and high value agricultural crops is a logical extension of this technology.

"Plant Health Care's mycorrhizal and rhizosphere products are strong additions to our soil amendment product line," said James P. Reilly, Jr., Ecogen's Chairman and CEO. "These products increase our product line-up in key vegetable, tree and vine markets in the western and southwestern U.S., as well as in other regions where Ecogen presently has a market focus selling CRYMAX(R) bioinsecticide and AQ10(R) biofungicide products."

Founded in 1994, Plant Health Care is a microbial biotechnology company that has quickly become a leading supplier of plant health care products and natural systems solutions to the commercial tree care, horticulture, turf grass, forestry and land reclamation industries. Ecogen and Plant Health Care previously announced an agreement whereby Plant Health Care will distribute four of Ecogen's biopesticide products into the landscape, turf grass, nursery and related markets.

Ecogen is a leader in the development of natural microbial pesticide products for the control of plant disease and insect pests. Ecogen's growing portfolio of products has been developed to address the concerns of pest management and the issues of chemical residues on fruits, vegetables and other crops. The Company's products include: two biofungicides -- Aspire(R) for
post-harvest rot disease and AQ10 for powdery mildew -- as well as its Bt bioinsecticides -- CRYMAX, to control caterpillars on fruits and vegetables; Condor(R), to control caterpillars on cotton, on other row crops and in forestry; and Lepinox, to combat caterpillars on cotton and other row crops, on turf and in pastures. Additional bioinsecticides under development include
Cruiser(R), an insecticidal nematode product for soil applications; and CryStar(TM), a Bt bioinsecticide for mosquito control.

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