BioTechnica announces financial results for quarter ended Dec. 31, 1994.

PEORIA, Ill.--(BUSINESS WIRE)--Feb. 1, 1995--BioTechnica International Inc. (NASDAQ:BIOT) today announced its results for the quarter ended Dec. 31, 1994.

Due to the accounting for the reverse acquisition with Shissler Seed, the actual financial statements presented in the second quarter 1995 Form 10-Q reflect figures for Shissler only as prior year information. A proforma financial statement comparing fiscal 1995 to fiscal 1994 was added to the notes of the Form 10-Q and reflects the results of the corporation to a comparative period of the prior year as if the acquisition took place on July 1, 1993. The following information is based on these proforma statements.

Second quarter sales for fiscal 1995 were $3,001,000 compared to $2,351,000 in fiscal 1994. Sales for the six-month period ending Dec. 31, totaled $4,884,000 for fiscal 1995, up from $4,255,000 in fiscal 1994. The net loss for the second quarter was $2,344,000 for 1995 versus a loss of $2,967,000 for 1994, while on a six-month basis the loss totaled $5,069,000 for fiscal 1995 and $5,494,000 for fiscal 1994. Historically, 70-80% of the corporation's revenues occur during the third and fourth quarters of the year. The first six months of the year are spent producing seed and preparing the marketing efforts for the sales season which begins in late December. Due to these seasonal fluctuations, results from the first six months of the year may not be indicative of the results of the corporation for the fiscal year. However, two positive indicators are already reflected in the corporation's six month results, the increase in export sales and the reduction of operating expenses.

Subsequent to the reverse acquisition, the corporation has directed substantial effort to restructuring its sales and marketing and administrative functions. As a result, second quarter sales and marketing expenses were reduced $138,000 from $1,478,000 in fiscal 1994 to $1,340,000 in fiscal 1995, and administrative costs for the second quarter declined $666,000 from $1,630,000 to $964,000 in fiscal 1995. On a six-month bases, sales and marketing expenses were reduced $386,000 from $3,339,000 in fiscal 1994 to $2,953,000 in 1995, and administrative costs have declined $568,000 from $2,490,000 to $1,922,000 in fiscal 1995. Administrative costs in the first quarter included additional expenses relating to the relocation of the corporation's headquarters to Peoria and restructuring not completed in fiscal 1994.

On Nov. 30, 1994, BioTechnica merged all operating subsidiaries into the main operating subsidiary, LG Seeds Inc. Going forward, operations of the company will be conducted only by LG Seeds, which management believes will further reduce overhead and administrative expenses and lead to improved brand recognition.

BioTechnica's access to the worldwide resources of Groupe Limagrain, and in particular genetic research being conducted on corn by Limagrain in the U.S., has provided BioTechnica with several new corn hybrids this year. These hybrids performed very well in state and local trials last year and have been introduced into the product line for fiscal 1995. Orders for these hybrids have been brisk and management expects demand to exceed supply. Overall, domestic corn orders to date for fiscal 1995 are equal to orders to date for fiscal 1994, while the projected corn acreage for spring 1995 is lower than 1994. This shows the very positive response of customers to the new products and new marketing strategy put in place by LG Seeds. Soybean bookings traditionally run later than corn bookings but management expects a good level of soybean sales. Alfalfa sales also take place later in the spring, but management was pleased with the performance of the company's alfalfa varieties in Wisconsin and Michigan where the company's primary alfalfa markets exist.

BioTechnica International Inc. is an agricultural products company dedicated principally to the production and marketing of hybrid corn, soybean, alfalfa, and other field seed products throughout the Midwest Corn Belt region of the United States.

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                    BIOTECHNICA INTERNATIONAL INC.
             PROFORMA CONSOLIDATED STATEMENT OF OPERATIONS
                            (Unaudited)

                      Three Months Ended          Six Months Ended
                           Dec. 31,                     Dec. 31,
                      1994          1993          1994          1993
                   __________    __________    __________    __________
Net sales:
 Customers         $1,022,000    $1,200,000    $2,905,000    $3,104,000
 Affiliates         1,979,000     1,151,000     1,979,000     1,151,000
                   __________    __________    __________    __________
                    3,001,000     2,351,000     4,884,000     4,255,000
Cost and operating
 expenses:

 Cost of goods sold 2,742,000     2,005,000     4,481,000     3,530,000
 Sales and
  marketing         1,340,000     1,478,000     2,953,000     3,339,000
 General and
  administrative      964,000     1,630,000     1,922,000     2,490,000
                   __________    __________    __________    __________
                    5,046,000     5,113,000     9,356,000     9,359,000

  Operating income (2,045,000)   (2,762,000)   (4,472,000)   (5,104,000)

Other income
  (expense):
 Interest expense    (306,000)     (312,000)     (627,000)     (481,000)
 Other                  7,000       107,000        30,000        91,000
                   __________    __________    __________    __________
   Net income
    before taxes   (2,344,000)   (2,967,000)   (5,069,000)   (5,494,000)
Income taxes                0             0             0             0
                   __________    __________    __________    __________
 Net income
  (loss)          $(2,344,000)  $(2,967,000)  $(5,069,000)  $(5,494,000)
                   __________    __________    __________    __________
                   __________    __________    __________    __________
 Net income
  per share       $     (0.02)  $     (0.02)  $     (0.04)  $     (0.05)
                   __________    __________    __________    __________
                   __________    __________    __________    __________
Weighted
 average shares
 outstanding      121,434,000   121,434,000   121,434,000   121,434,000
                  ___________   ___________    __________    __________
                  ___________   ___________    __________    __________

CONTACT: BioTechnica International Inc., Peoria

J.C. Gouache, 309/681-0300