Agritope Fiscal Third Quarter Revenues More Than Double, Loss Narrows.

Business Editors

PORTLAND, Ore.--(BUSINESS WIRE)--Aug. 14, 2000

Agritope, Inc. (Nasdaq:AGTO) today reported that strong product sales and continued increases in research activities contributed to record revenues.

For the third fiscal quarter ended June 30, 2000, total revenues increased 121 percent to $3.4 million compared to $1.5 million in the like quarter a year ago. Research related revenues jumped more than 230 percent to $1.0 million for the quarter. The net loss for the quarter narrowed significantly to $677,000, or $.16 per share (basic and diluted), compared to a loss of $1.3 million, or $.32 per share, for the quarter ended June 30, 1999.

Revenues for the first nine months of fiscal 2000 rose 133 percent to $5.1 million compared to $2.2 million in the like period a year ago. Revenues from research activities increased over 260 percent to $2.3 million in the nine-month period. The net loss for the period was $3.0 million, or $.74 per share (basic and diluted) compared to a net loss of $3.8 million, or $.94 per share, in the first nine months of fiscal 1999.

"We have been increasing the depth and breadth of our research programs over the last several months," said Adolph J. Ferro, president and chief executive officer. "We've added to our scientific staff, been awarded government grants, discovered new technologies, received new patents and filed for others. This activity has contributed significantly to our revenues. This quarter's revenues alone nearly reached total revenues for all of fiscal 1999."

"Our investment in R&D increased in support of the projects we have initiated internally and with our affiliate, Agrinomics, LLC," added Ferro. Research and development expenses in the third quarter were $1.2 million compared to $814,000 in the like quarter a year ago. Selling, general and administrative expenses were $852,000 for the quarter, compared to $917,000 in the year ago quarter. The loss from operations narrowed to $864,000 compared to $1.4 million for the third fiscal quarter last year.

"Vinifera's peak selling season continued into this quarter, as product sales increased nearly 500 percent from the second quarter and 95 percent from a year ago," said Ferro. Grapevine shipments are highly seasonal and primarily occur during the spring and summer planting seasons. The revenue contribution from Vinifera was up 95 percent to $2.4 million for the quarter and up 81 percent to $2.8 million for the first nine months of the fiscal year. At June 30, 2000, Vinifera had firm orders totaling $1.7 million for delivery in the remaining months of fiscal 2000, and $1.1 million for delivery in spring and summer of 2001.

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 percent 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 together with disease testing and elimination services.

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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           A tabulation of operating highlights and balance
      sheet data follows: (in thousands, except per share data):


                             Three Months Ended   Nine Months Ended
                                   June 30,            June 30,
Operating Highlights           2000       1999     2000       1999

Revenues
 Product sales              $  2,383  $  1,225  $  2,831  $  1,560
 Government research
  grants                         111        97       290       230
 Research projects
  with strategic
  partners                       185       206       328       398
 Research projects
  with affiliate                 706      --       1,648      --
                            --------  --------  --------  --------
    Total revenues             3,385     1,528     5,097     2,188
Costs and expenses
 Product costs                 2,242     1,195     2,663     1,540
 Research and
  development expenses         1,155       814     3,165     2,266
 Selling, general and
  administrative
  expenses                       852       917     2,725     2,729
                            --------  --------  --------  --------
  Loss from operations          (864)   (1,398)   (3,456)   (4,347)
Other income (expense),
 net                             116         1       117       267
Minority interest in
 subsidiary net loss              71        93       298       246
 Net loss                   $   (677) $ (1,304) $ (3,041) $ (3,834)

 Net income per share
  (basic and diluted)       $  (0.16) $  (0.32) $  (0.74) $  (0.94)

Weighted average shares
 outstanding (basic
 and diluted)                  4,128     4,066     4,107     4,059

                                     June 30,   Sept. 30,   June 30,
Balance Sheet Data                     2000       1999        1999

Assets
Cash and cash
 equivalents(a)                      $  1,463  $  4,204  $  1,656
Accounts receivable,
 net                                    1,046       640       461
Inventories                             5,208     5,054     4,790
Other current assets                      660        73       380
Other assets                            5,025     5,500     5,566

                                     $ 13,402  $ 15,471  $ 12,853
Liabilities and
 Stockholders' Equity
Current liabilities                  $  5,017  $  4,184  $  3,956
Long-term debt, less
 current portion                            3         5         7
Minority interest                       1,699     1,959     1,368
Stockholders' equity                    6,683     9,323     7,522
                                     $ 13,402  $ 15,471  $ 12,853

Working capital                       $ 3,360   $ 5,787   $ 3,331

      (a) Does not include $1.9 million cash and cash equivalents held
by Agritope's 50 percent-owned subsidiary Agrinomics LLC.