Corporate Profile for AgraQuest, Inc., Dated August 11, 2000.

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Published Date:   August 11, 2000

Company Name:     AgraQuest, Inc.

Address:          1530 Drew Avenue
                  Davis, California 95616

Main Telephone
 Number:          530/750-0150

Internet Home
 Page Address
  (URL)           www.agraquest.com

Chief Executive
 Officer:         Pamela G. Marrone

Chief Financial
 Officer:         Donald J. Glidewell

Investor Relations
 Contact:         Pamela Marrone
 Business number: 530/750-0150
 E-mail address:  [e-mail]

Public Relations
 Contact:         Pamela G. Marrone
 Business number: 530/750-0150
 E-mail address:  [e-mail]

Industry:         Biotechnology, Agbio; Biopesticides

Company Description:

Mission: AgraQuest discovers, develops, and markets effective, safe, and environmentally-friendly natural products for farm, home and public health pest management.

Financing: AgraQuest is backed by several influential growers, businesses and internationally recognized venture capital organizations such as Rockefeller & Co., Volkart Brothers, Swiss Re, Stephens Group, Inc., Burrill & Company, King Ranch, BioAsia Investments and Ojai Investment Co.

Market Need and Market Opportunity: $30 billion are spent each year on chemical pesticides. The public has a negative perception of chemical pesticides. Transgenic crops are cannibalizing chemical pesticide markets and shifting pesticide use patterns in the major row crops. 500+ pest species have developed resistance to chemical pesticides. The cost and time to bring a new chemical to market have ballooned to $100M and 7-10 years (a biopesticide takes 2-4 years and ~$5M). More than 100,000 compounds must be tested to find one new chemical pesticide product that meets the EPA's regulatory requirements. As a result, fewer products are being registered and older ones are being removed. The 1996 Food Quality Protection Act restricts pesticides in children's food. The "minor crops" (fruits, nuts, vegetables and ornamentals = AgraQuest's focus) have fewer tools than larger crops such as cotton, corn, wheat and rice. The use of biopesticides, which make up less than 1% of the pesticides sold, is growing rapidly (~25%/year). Organic food, produced without synthetic chemicals, is growing rapidly at +20%/year.

Regulatory: Natural products are registered by the US EPA as "microbials" or "biochemicals." Approval is 12-20 months after registration package submission. AgraQuest has two registered products, Serenade(R) biofungicide and Laginex(R) mosquito larvicide.

Technology: AgraQuest has a targeted and directed screening process that discovers proprietary, safe, naturally-occurring microorganisms with efficacy and economics equals to or better than chemical pesticides. The microbes are fermented, dried, packaged and then sprayed on the crop just like chemical pesticides.

Patents: Sixteen patents issued/allowed. Three more filed.

Company's Competitive Advantages: We are the only biopesticide company with a discovery screen for new microbial pesticides. Based on 20 years of experience testing hundreds of thousands of microbes, the company's screening system can more quickly and efficently than anyone else find those naturally-occurring microorganisms that have pest control properties. For every 5,000 microbes AgraQuest screens, the company discovers three product candidates that can compete with chemical pesticides on performance, cost effectiveness, reliability, shelf life and ease of use. We can get our discoveries to the market faster, with less capital than anyone else. AgraQuest discovered its major product, biofungicide Serenade six months after the 1995 start of the company, after testing only 713 microbes. Since then, the Company moved the product through the commercial development process at unprecedented speed and at an unprecedented cost.

AgraQuest has a deep pipeline of proprietary products and discoveries for agriculture:

Serenade biofungicide for fruits, nuts, vegetables, ornamentals (on the market)

Sonata(tm) biofungicide for fruits, vegetables and ornamentals (market entry 2001)

Virtuoso(tm) bioinsecticide for controlling caterpillar pests (market entry 2001)

QST5501 bionematicide for fruits and vegetables (market entry 2002)

Bt enhancer bioinsecticide: When combined with the successful bioinsecticide Bacillus thuringiensis, the enhancer significantly improves its effectiveness against caterpillar pests. The enhancer could also be used to control pests that have developed resistance to commercial Bt sprays or to genetically engineered crops expressing Bt protein.