MYCOGEN TO FORM STRATEGIC ALLIANCE WITH EUROPEAN SEED COMPANY

October 15, 1996

SAN DIEGO, Calif.-- Mycogen Corporation (Nasdaq: MYCO) has signed letters of intent for transactions through which it would form a strategic alliance with Verneuil Holding, a major European seed company based in France.

The agreements call for Mycogen to exchange its existing European seed business and other assets for an 18.75 percent interest in Verneuil Holding and to obtain an option to purchase another 16.25 percent of Verneuil�s stock now owned by DowElanco. DowElanco, a partnership of Dow Chemical and Eli Lilly & Co., is Mycogen�s largest stockholder, with approximately 48 percent of the company�s common shares.

Verneuil Holding, which markets hybrid seed corn, sunflower, wheat, barley and other seed products in several European countries and North Africa, had 1996 revenues of approximately $62 million. Mycogen had European seed revenues of $8 million.

Mycogen�s Mycogen Seeds subsidiary is the sixth largest seed company in the United States and a leader in developing and marketing insect-resistant corn hybrids. In September, Mycogen acquired Morgan Seeds, Argentina�s third largest seed company. Jerry Caulder, Mycogen�s chairman and chief executive officer, said that taking an equity position in Verneuil Holding is another key element in Mycogen�s international growth strategy.

"Europe is the world�s second largest agricultural market, and this alliance will greatly strengthen our position there," Caulder said. "Our technology will help Verneuil to develop new, value-added products, and an exchange of breeding material between the two companies will be mutually beneficial."

Jean-Louis Duval, managing director of Verneuil Holding said, "Mycogen�s strength in biotechnology and specialty oils technology will be instrumental in our strategy for building our business throughout Europe and in other Mediterranean markets."

Carl Eibl, Mycogen�s president and chief operating officer, said the agreement calls for expansion of an ongoing exchange of corn parent lines between Verneuil and United Agriseeds, which Mycogen acquired from DowElanco in February 1996, and formation of two joint ventures. One will license technology and genetics from Verneuil and Mycogen to develop and commercialize oilseed products; the other will license technology and genetics from both to develop insect-resistant seed corn. Verneuil and the joint venture companies will have the right to use the Mycogen name and trademark for seed products.

"This alliance will further leverage Mycogen�s research and development investments," Eibl said. "We will share breeding material and value-added traits among Verneuil and our U.S. and South American companies, but each company�s management will be responsible for sales and product development."

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 international currency, commodity prices and crop acreage.

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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