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CALGENE AND MOBIL ANNOUNCE BIODEGRADABLE LUBRICANT AGREEMENT

 CALGENE AND MOBIL ANNOUNCE BIODEGRADABLE LUBRICANT AGREEMENT
 DAVIS, Calif., Sept. 22 /PRNewswire/ -- Calgene Inc. (NASDAQ: CGNE) today announced an agreement to become the exclusive supplier of vegetable oil-based Environmental Awareness Lubricants (EAL) for Mobil Oil Corp. (NYSE: MOB). Under the agreement, Calgene's subsidiary, Calgene Chemical, will produce Mobil's proprietary lubricants and supply the formulated product to Mobil. The EAL products involved are functionally equivalent to petrochemical-based lubricants, but because of their rapeseed oil base together with a carefully formulated additive package, they are fully biodegradable. Mobil expects that U.S. demand for its biodegradable products will exceed 20 million pounds annually by 1995.
 "The agreement with Mobil, the largest supplier of finished lubricants in the United States, represents a major milestone in the development of Calgene's vertically integrated oils and oleochemical business," said Roger Salquist, chairman and chief executive officer of Calgene. "Our relationship with Mobil will serve as a the springboard for our program to supply conventionally developed and genetically engineered seed oils to the lubricant industry. We believe that the combination of Calgene's genetic engineering capabilities, our conventional plant breeding and field production experience and Calgene Chemical's presence in the lubricant and oleochemical markets uniquely positions the company to develop and take advantage of new opportunities arising from the increasing demand for environmentally friendly lubricants an. business manager for industrial lubricants. "We have made a substantial
investment in time and money to develop our EAL product line. Our agreement with Calgene will ensure that we have a reliable supply of high quality products for our customers."
 Mobil's EAL products will be manufactured by Calgene Chemical at its manufacturing facility in Skokie, Ill. Calgene purchased the facility as part of the acquisition of Hodag Chemical in July of this year. "The Mobil agreement will provide significant financial and operational leverage to our investment in Hodag," said Salquist.
 Calgene is currently conducting the world's largest vegetable oil genetic engineering program aimed at developing a portfolio of new products for the food, oleochemical and industrial lubricant markets. In August, Calgene announced it had cloned the reductase gene, which is responsible for the synthesis of fatty alcohols in plants. In the fall of 1991, Calgene planted the world's first trials containing plants genetically engineered to produce a modified vegetable oil. The plants produce a novel oil containing dramatically increased levels of stearic acid, making them potentially suitable for margarine and confectionery markets. In January of this year, Calgene announced it had genetically engineered canola plants to produce laurate (C12), a key raw material for soap, detergent, oleochemical, personal care and food industries. This work was recently featured in the July 5th edition of the magazine Science. Field trials containing both high stearic and lauric rapeseed plants are currently being conducted in the upper midwest following winter trials in California and Georgia.
 Calgene is an agribusiness biotechnology company that is developing improved plant varieties and plant products for the seed, food and specialty chemical industries. The company has four operating subsidiaries: Ameri-Can Pedigreed Seed Co., Calgene Chemical, Stoneville Pedigreed Seed Co. and Calgene Fresh Inc.
 -0- 9/22/92
 /CONTACT: Andrew Baum or Carolyn Hayworth of Calgene, 916-753-6313; or Richard Scheels of Mobil Oil, 703-849-4563/
 (CGNE MOB) CO: Calgene Inc.; Calgene Chemical; Mobil Oil Corp.; Hodag Chemical ST: California, Illinois IN: OIL SU:


TM-GT -- SF003 -- 2070 09/22/92 10:08 EDT
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Publication:PR Newswire
Date:Sep 22, 1992
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