EcoScience Corporation Reports Results for Third Quarter.

EAST BRUNSWICK, NJ--(BUSINESS WIRE)--Nov. 17, 1999--

EcoScience Corporation (OTCBB:ECSC), the largest U.S. producer of premium, greenhouse grown tomatoes, today announced results for the third quarter ended October 3, 1999.

For the third quarter ended October 3, 1999, net revenues decreased 20% to $6,982,000, compared to $8,708,000 in the corresponding period a year earlier. The lower revenues primarily reflect the sale of the Company's postharvest equipment division in February 1999 combined with sales of fewer pounds of tomatoes due to the closure of the Company's leased facility in Wheatfield, NY. The net loss for the 1999 third quarter amounted to $7,757,000, or $0.61 per share, compared with a net loss of $3,892,000 or $0.33 per share, a year-earlier. The prior year loss reflects a reduction of the loss due to the minority interests in four greenhouse facilities held by a third party that were purchased in December 1998.

"We are working to strengthen our finances and continue to reduce both production and administrative costs. We have begun to harvest the new crop at the greenhouses that supply our customers during the winter, a season in which the Company historically achieves its highest unit pricing," said Michael A. DeGiglio, President and Chief Executive Officer. "This, combined with our current strategy to focus on core businesses, should improve our financial condition."

For the thirty-nine weeks ended October 3, 1999, net revenues were $39,678,000, 7% higher than net revenues in the corresponding year-earlier period. The increase reflected a rise in tomato revenues of $6,395,000, or 26% over the prior year despite lower market prices, offset by a decrease in the biological and agricultural product sales of $3,767,000. This decrease is primarily due to the sale of the postharvest equipment division that management has deemed non-core. The net loss for the thirty-nine weeks ended October 3, 1999 was $18,443,000 or $1.46 per share, compared to a net loss of $7,449,000 or $.64 per share, for the comparable period of the prior fiscal year. The prior year loss reflects the reduction of the loss due to the minority interests in four greenhouse facilities. The current year includes losses that resulted from both start up costs and the abbreviated crop cycle at the Presidio facility due to the conversion from peppers to tomatoes in April 1999 and the imposition of a default rate of interest by the Company's senior lender.

As previously announced, the Company signed a commitment letter in July 1999 with its senior lenders which calls for the restructuring of an existing $58,900,000 term facility and providing a new $8,400,000 working capital line of credit subject to certain conditions including restructuring of indebtedness to Cogentrix Energy, Inc. ("Cogentrix") which relates to the Company's acquisition of Cogentrix's interest in four greenhouse operations in which both the Company and Cogentrix were partners. The proposed maturity date of the term facility is two years, with a two-year extension under certain conditions. The line of credit will mature in one year with an option to request a one-year extension. In October 1999, the Company signed another commitment letter for an additional $5,000,000 working capital line of credit to be repaid no later than March 31, 2000 and for the deferral of all interest payments on the existing term facility, the $8,400,000 and $5,000,000 working capital lines until March 31, 2000. All of the proposed $8,400,000 working capital line and $2,670,000 of the proposed $5,000,000 working capital line have been funded in advance of the proposed restructuring.

On November 8, 1999, the Company sold substantially all of the assets of EcoScience Produce Systems Corporation ("EPSC"), excluding EPSC's BioSave(R) biofungicide products and technology, to Pace International LLC ("PACE"). EPSC conducted the Company's postharvest coating products business and was divested as part of the Company's plan to focus on its core businesses. The Company has entered into a distribution agreement with Pace pursuant to which Pace has been granted the exclusive rights to distribute BioSave in the United States for the citrus, pome fruit and cherry markets.

EcoScience also announced that it has curtailed the development and marketing effort for its biotechnology division.

EcoScience is the leading domestic producer, marketer, and distributor of high quality greenhouse grown tomatoes and uses advanced and environmentally sound technology to provide customers with nutritious, safe, better tasting and more appealing fresh produce. The Company markets its premium beefsteak and cluster on-the-vine tomatoes under the Village Farms(R) and Home Choice(TM) brand names. In addition, EcoScience develops, markets, and distributes biological and agricultural products.

This press release contains "forward-looking statements" which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that known and unknown risks, uncertainties and other factors may cause actual results, performance or achievements of EcoScience to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Factors that might cause such differences include EcoScience's risks and uncertainties related to EcoScience's future profitability, ability to meet its capital needs, government regulation, continued cooperation of the Company's creditors, competition, market acceptance, Year 2000 compliance and other factors described in Item 7A and elsewhere in EcoScience's annual report on Form 10-K and other filings with the Securities and Exchange Commission.

To receive additional information on EcoScience Corporation, please visit our website at www.EcoScience.com.

-- Financial Tables Follow -- -0-

                EcoScience Corporation and Subsidiaries
                        Summary Financial Data
                 (In thousands, except share amounts)

                         Thirteen        Three
                        Weeks ended  Months ended
                       Oct. 3, 1999  Sept. 30, 1998
                   ----------------  --------------
Statement of Operations Data:


Net revenues             $  6,982    $  8,708

Cost of revenues            9,392      10,032
                         --------    --------

Gross profit               (2,410)     (1,324)

Operating expenses          3,756       3,799
                         --------    --------

Operating loss             (6,166)     (5,123)

Other expense              (1,802)       (920)
                         --------    --------

Loss before taxes
  and minority
  interest                 (7,968)     (6,043)

(Benefit) provision
 for income taxes              (4)          0
                         --------    --------

Loss before
 minority interest         (7,964)     (6,043)

Minority interest             207       2,151
                         --------    --------

Net loss                 ($ 7,757)   ($ 3,892)
                         ========    ========

Loss per share:

Basic:
Loss per share           ($  0.61)   ($  0.33)
                         ========    ========
Weighted average
 common shares
 outstanding               12,619      11,618
                         ========    ========

Diluted:
Loss  per share          ($  0.61)   ($  0.33)
                         ========    ========

Weighted average

 common shares
 outstanding               12,619      11,618
                         ========    ========


                       Thirty-nine       Nine
                       Weeks ended   Months ended
                       Oct. 3, 1999  Sept. 30, 1998
                    ---------------- ----------------
Statement of Operations Data:


Net revenues             $ 39,678    $ 37,050

Cost of revenues           40,749      37,206
                         --------    --------

Gross profit               (1,071)       (156)

Operating expenses         11,186      10,174
                         --------    --------

Operating loss            (12,257)    (10,330)

Other expense              (6,544)     (3,617)
                         --------    --------

Loss before taxes
  and minority
  interest                (18,801)    (13,947)

(Benefit) provision
 for income taxes               1           0
                         --------    --------

Loss before
 minority interest        (18,802)    (13,947)

Minority interest             359       6,498
                         --------    --------

Net loss                 ($18,443)   ($ 7,449)
                         ========    ========

Loss per share:

Basic:
Loss per share           ($  1.46)   ($  0.64)
                         ========    ========
Weighted average
 common shares
 outstanding               12,619      11,618
                         ========    ========

Diluted:
Loss  per share          ($  1.46)   ($  0.64)
                         ========    ========

Weighted average
 common shares
 outstanding               12,619      11,618
                         ========    ========


Balance Sheet Data:                         Oct. 3, 1999  Jan. 3, 1999
                                            ------------  ------------

Cash, cash equivalents and investments           878         1,222
Working capital                              (95,295)      (82,661)
Total assets                                  87,297       101,864
Total current liabilities                    107,984       103,486
Total noncurrent liabilities                   2,487         2,807
Total stockholders' (deficit)                (23,480)       (5,094)