MYCOGEN REPORTS HIGHER REVENUES, LOSS FOR 1996 FISCAL YEAR

October 18, 1996

SAN DIEGO, Calif.-- Mycogen Corporation (Nasdaq: MYCO) recorded revenues of $155.6 million for the fiscal year ended August 31, 1996, compared to $113.2 for fiscal 1995. Net loss applicable to common shares was $47.6 million, or $1.81 per share, including $25.2 million, or $.96 per share, of special charges for facility closures and write-offs of acquired in-process technology. That compares to a net loss of $15.9 million, or $.83 per share, for fiscal 1995.

Mycogen's revenues for the fourth quarter ended August 31, 1996, were $23.4 million, compared to $14.6 million for the same period a year ago. Net loss was $18.8 million, including $2.3 million of special charges for facility closures. That compares to a fourth quarter net loss of $14.3 in 1995.

James A. Baumker, Mycogen's vice president and chief financial officer, said that higher revenues for Mycogen's crop protection and seed businesses were offset by expenses associated with the company's consolidation following the United AgriSeeds acquisition and write-offs of seed inventory and acquired in-process technology.

"The strong top-line trend is encouraging," Baumker said. "Our goal for 1997 is to reduce expenses and improve gross margins to translate that revenue growth into a significantly improved bottom line. The facility closures and streamlining that resulted in special charges and higher than normal expenses last year were part of an aggressive plan to move the company toward profitability."

Carl Eibl, Mycogen's president and chief operating officer, said fiscal 1996 was the first year of a three-year plan to build a profitable global seed business.

"With the acquisitions, alliances and production facility improvements we've made over the past year, we're ahead of our schedule for building Mycogen's seeds business," Eibl said. "We have laid the foundation for an operational and financial turnaround, and we expect performance in fiscal 1997 to demonstrate that our plan is sound and comprehensive."

Mycogen's forward-looking statements are based on projections and estimates regarding the economy and the seed and crop protection industries. Various factors could cause actual results to vary significantly from management's expectations. These include the impact of weather on production and sales, actions by competitors and regulatory agencies, intellectual property positions, fluctuations in commodity prices and crop acreage and the effectiveness of internal expense controls.

Mycogen is a diversified agricultural biotechnology company that develops and markets technology-based products and provides crop protection services to control agricultural pests and improve food and fiber production. Mycogen Seeds develops and markets planting seeds for improved crop varieties with genetically enhanced insect-resistance and other value-added characteristics. Mycogen Crop Protection develops and markets environmentally compatible biopesticides and provides crop protection services to growers of high value crops in California and Arizona.

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