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News Release
AGRIBIOTECH, INC. AND MYCOGEN TO DEVELOP INSECT RESISTANT ALFALFA USING Bt TECHNOLOGY
9/21/1998 Las Vegas, NV - Dr. Johnny R. Thomas, Chairman and Chief Executive Officer, AgriBioTech, Inc. (NASDAQ National Market: ABTX) announced today that AgriBioTech and Mycogen (NASDAQ National Market: MYCO) have signed a letter of intent to jointly develop insect-resistant alfalfa varieties. Insect-resistant alfalfa varieties will be marketed to capture the added value expected to result from higher yields, increased stand persistence and enhanced nutritional value. AgriBioTech and Mycogen will share equally the captured incremental value added under the terms of the exclusive license. AgriBioTech and Mycogen have also agreed to priority negotiations on insect-resistant turfgrasses utilizing Bt technology.
Mycogen will be responsible for screening its Bt gene and strain library in order to identify genes active against the insect pests targeted by AgriBioTech. Mycogen will provide AgriBioTech with the selected genes in an expression cassette ready for transformation into alfalfa. "Matching Mycogen's Bt insect-resistant technology with AgriBioTech's industry-leading alfalfa and turfgrass breeding and marketing capabilities will be good for both companies and our customers," said Mycogen's President, Carl Eibl. "Over the long term, Mycogen will have an opportunity to generate significant revenue from our participation in the value added to AgriBioTech's seed products, and we will also be able to market jointly developed insect-resistant alfalfa seed under the Mycogen® brand."
AgriBioTech will be responsible for all transformation, regeneration, selection conversion and breeding activities. AgriBioTech will utilize its germplasm for all breeding activities. AgriBioTech will be primarily responsible for marketing the insect resistant varieties. Mycogen will also market product through its distribution channels. According to Dr. Tom Rice, Vice President and Director of Research for AgriBioTech, "Insect resistance is a priority target based upon the value it will bring to our customers. AgriBioTech is pleased to combine its emerging biotechnology capability, its leading germplasm position and its industry-leading market share with Mycogen's exceptional Bt technical capabilities and intellectual property."
AgriBioTech is a fully integrated full service seed company specializing in the forage and turfgrass seed sector, complete with research and development of proprietary seed varieties, seed processing plants, and a national and international distribution and sales network. The Company has completed 32 acquisitions since January 1, 1995 and is the largest forage and cool season turfgrass seed company in the world, with a current level of annualized net sales of approximately $445 million.
Mycogen is a diversified agribusiness and biotechnology company that develops and markets seeds and value-added traits for genetically enhanced crops and provides crop protection products and services. Mycogen is majority-owned by Dow AgroSciences LLC, a wholly owned subsidiary of The Dow Chemical Company (NYSE: DOW).
The statements discussed in this press release include forward looking statements that involve a number of risks and uncertainies. These include the Company's historical lack of profitability, need to manage its growth, intense competition in the seed industry, seasonality of quarterly results, and other risks detailed from time to time in the Company's SEC reports.
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