Agritope Awarded USDA Phase II Grant for Virus Resistance Technology.

Business Editors

PORTLAND, Ore.--(BUSINESS WIRE)--Oct. 17, 2000

Agritope, Inc. (Nasdaq:AGTO), which in September announced an agreement to merge with Exelixis, Inc. (Nasdaq:EXEL), today announced the award of a US Department of Agriculture (USDA) Small Business Industrial Research (SBIR) Phase II grant of $265,000 to develop virus resistance technology for raspberry plants.

This award follows the completion of a USDA SBIR Phase I award in 1999 that supported the successful development of the core virus resistance technology.

The technology, under development in collaboration with Dr. Robert Martin of the USDA ARS laboratory at Oregon State University, may provide plant resistance to Raspberry Bushy Dwarf Virus, or RBDV, a major pathogen of raspberry responsible for production of crumbly fruit. Fruit produced by plants with RBDV are suitable for use in juices or purees, but not for the higher value whole fresh or frozen markets. In addition, a field affected by RBDV typically must be taken out of production within five years after onset of the disease. The initial work showed that 80% of transgenic plants remained virus-free after grafting onto an infected plant.

"We are pleased that USDA has decided to provide additional funding for this project that has the potential to provide a solution to a serious problem for raspberry growers. Our primary target is Meeker, a raspberry variety that is particularly susceptible to RBDV. Meeker is the predominant variety planted in Oregon, Washington and British Columbia, a region that accounts for 90% of the North American raspberry production," said Adolph J. Ferro, president and chief executive officer of Agritope. "The only effective means of controlling RBDV is to grow cultivars that are resistant to the virus because transmission of RBDV is associated with flowering which makes control very difficult or impossible by application of chemicals."

Earlier this year, Agritope announced the receipt of two USDA SBIR Phase I awards, one of which is also related to the development of resistance technology to viral infection. That research program involves a complementary viral resistance strategy that has potential to function across a broad spectrum of crop plants.

Agritope is an Oregon-based agricultural functional genomics and biotechnology company that develops improved plant products and provides technology to the agricultural industry. Its fruit and vegetable division specializes in the development of improved fruit, vegetable and flower varieties. Agrinomics LLC, its 50% owned joint venture with Aventis CropScience (NYSE:AVE), conducts a research, development and commercialization program in the field of plant functional genomics. Vinifera, Inc., its majority owned subsidiary, offers superior grapevine plants to the premium wine industry.

Certain statements in this release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that expressly or by implication predict future results, performance or events are forward-looking. The words "believes," "intends," "expects," "anticipates," "estimates," and similar expressions often identify forward looking-statements. The forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company or industry results to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. With respect to Agritope, these factors include its limited independent operating history; uncertainty of additional funding; loss or impairment of sources of capital; dependence on strategic partners; uncertainties relating to patents and proprietary information; dependence on key personnel; technological change and competition; uncertainties as to consumer acceptance of genetically engineered products; changes in laws or regulations; as well as the other factors discussed in Exhibit 99 to the Company's 1999 Annual Report on Form 10-K, which is hereby incorporated by reference. Given these uncertainties, readers are cautioned not to place undue reliance on the forward-looking statements. Agritope does not intend to update any forward-looking statements.

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