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CALGENE ANNOUNCES FIRST QUARTER RESULTS

 CALGENE ANNOUNCES FIRST QUARTER RESULTS
 DAVIS, Calif., Nov. 2 /PRNewswire/ -- Calgene Inc. (NASDAQ: CGNE)


today announced a net loss of $4,850,000 (23 cents per share) on revenues of $5,384,000 for the first quarter ended Sept. 30, 1992. This compares with a net loss of $4,788,000 (37 cents per share) on revenues of $4,258,000 during the same period last year. The prior year first quarter loss includes a $2,000,000 charge for purchase of the exclusive North American fresh market tomato rights to the FLAVR SAVR(TM) gene from the Campbell Soup Co. (NYSE: CPB). The revenue increase in the current period largely reflects the inclusion of Hodag Chemical Corp., a specialty oleochemical manufacturer acquired in July 1992.
 Selling, general and administrative expenses for the quarter were $3,274,000, an increase of 36 percent from the prior year's $2,402,000. The increase in SG&A expense reflects start-up expenses associated with Calgene Fresh, a subsidiary formed in January 1992 to commercialize the FLAVR SAVR tomato and the inclusion of Hodag. Gross profit from net product sales for the current period was $346,000, a decrease of $375,000 from the prior year. Gross profit decreased largely due to the high cost of conventionally developed vine ripe tomatoes used in the Calgene Fresh test markets. Research and development expenditures for the quarter were $3,195,000, an increase of 11 percent from the prior year's $2,868,000. The increase in R&D expense reflects added product development costs associated with expanded rapeseed and cotton field trial activity as well as expenses from testing tomato distribution and packaging methods.
 Roger Salquist, chairman and chief executive officer said, "These results reflect our continued progress toward being the first company to commercialize genetically modified plants and plant products. The planned 1993 launch of the FLAVR SAVR tomato remains on schedule. In October, the U.S. Department of Agriculture deregulated Calgene's FLAVR SAVR tomato, which allows us to grow and ship the tomato anywhere in the U.S. without further permits or approvals. Test marketing of the FLAVR SAVR tomato will commence upon receipt of formal responses from the Food and Drug Administration.
 "Major progress continues to be made in Calgene's oils programs. In addition to the acquisition of Hodag Chemical Corp., Calgene recently became the exclusive supplier of vegetable oil based Environmental Awareness Lubricants for Mobil Oil Corp.. In October Calgene entered into an agreement with Stevens Industries, a department of Cargill Inc., for Stevens to process specialty canola for Calgene in southern Georgia. Calgene's high stearic acid canola, which is a healthier alternative to partially hydrogenated vegetable oils used in shortenings and margarines is in its third season of field trials. A second season of field trials is underway with canola plants modified to produce a new source of laurate, a key raw material for the soap, detergent, oleochemical, personal care and food industries. In cotton Calgene is building up inventories of Bromotol(TM) cotton seed in anticipation of a 1994 product launch of seed genetically modified to be resistant to the herbicide bromoxynil," added Salquist.
 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, Calgene Fresh and Stoneville Pedigreed Seed Co..
 CALGENE INC.
 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 (In thousands except per share amounts)
 (Unaudited)
 Three Months
 Ended Sept. 30
 1992 1991
 Revenues:
 Product sales, net $ 3,973 $ 2,384
 Product development revenues 861 1,232
 Interest income 496 596
 Other income, net 54 46
 Total 5,384 4,258
 Costs and expenses:
 Cost of goods sold 3,627 1,663
 Research and development 3,195 2,868
 License purchase --- 2,000
 Selling, general and
 administrative 3,250 2,415
 Interest expense 309 196
 Total 10,281 9,142
 Minority interest share of
 net (income) loss (2) 55
 Gain from sale of assets 49 41
 Net loss $ (4,850) $ (4,788)
 Preferred stock dividends $ --- $ 700
 Net loss applicable to
 common shareholders $ (4,850) $ (5,488)
 Net loss per share $ (0.23) $ (0.37)
 Shares used per share
 calculations 21,016,379 14,983,514
 -0- 11/2/92
 /CONTACT: Mike Motroni or Carolyn Hayworth of Calgene, 916-753-6313/
 (CGNE CPB) CO: Calgene Inc.; Hodag Chemical Corp.; Campbell Soup Co.;
 Mobil Oil Corp. ST: California IN: FOD SU: ERN


SG-TM -- SF003 -- 1739 11/02/92 16:06 EST
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Date:Nov 2, 1992
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