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CALGENE ANNOUNCES FIRST QUARTER RESULTS

 DAVIS, Calif., Nov. 12 /PRNewswire/ -- Calgene Inc. (NASDAQ: CGNE) today announced a net loss of $10,424,000 ($0.43 per share) on revenues of $6,245,000 for the first quarter ended Sept. 30, 1993. This compares with a net loss of $4,850,000 ($0.23 per share) on revenues of $5,384,000 during the same period last year.
 Roger Salquist, Calgene's chairman and chief executive officer said, "The first quarter results were as planned. The increased loss largely reflects our continued expenditures at Calgene Fresh Inc. as we position it for introduction of the FLAVR SAVR(TM) tomato. As part of this strategy, Calgene Fresh has been selling conventionally developed, premium quality, vine-ripened tomatoes under its MacGregor's(R) brand. The company is now authorized to sell these tomatoes to over 500 stores representing a potential customer base of over 1,250 stores in nine midwestern markets. We will begin selling FLAVR SAVR tomatoes under the MacGregor's label on a regional basis this winter pending FDA clearance. FLAVR SAVR tomatoes will not be available in significant quantities until March 1994."
 Calgene's increased loss in the first quarter reflects a $1.7 million negative gross profit from product sales due to the high cost of conventionally developed vine-ripened tomatoes at Calgene Fresh. In addition, selling, general and administrative expenses for the quarter were $5.7 million, an increase of $2.5 million from the prior year. The increase in SG&A expense primarily reflects higher expenses at Calgene Fresh incurred in anticipation of increased product sales and introduction of the FLAVR SAVR tomato. Costs and expenses will continue to be high at the tomato subsidiary, particularly during the period before unit costs benefit from commercial volumes, from the production and distribution economies the company is working to achieve, and from reduced spoilage by using FLAVR SAVR tomatoes.
 Cash and equivalents and short term investments at Sept. 30, 1993 were approximately $23.3 million. Calgene is currently building seasonal cottonseed inventory at its Stoneville Pedigreed Seed subsidiary and tomato inventory at Calgene Fresh. The inventory buildup will be partly financed under the company's bank line of credit.
 Calgene is an agribusiness biotechnology company that is developing improved plant varieties and plant products for the fresh tomato, cotton seed and special industrial and edible oils markets.
 CALGENE INC.
 Condensed Consolidated Statements of Operations
 ($ in thousands, except per share amounts)
 (Unaudited)
 Three months
 Ended Sept. 30
 1993 1992
 Revenues:
 Product sales, net $ 5,304 $ 3,973
 Product development revenues 588 861
 Interest Income 305 496
 Other income, net 48 54
 Total 6,245 5,384
 Costs and expenses:
 Cost of goods sold 6,959 3,627
 Research and development 3,662 3,195
 Selling, general
 and administrative 5,700 3,241
 Interest expense 100 209
 Total 16,421 10,272
 Minority interest share
 of net (income) loss 29 (2)
 Equity in net loss of affiliate (265) --
 Gain (loss) from sale of assets (10) 49
 Loss before income taxes (10,422) (4,841)
 Provision for income taxes 2 9
 Net loss $ (10,424) $ (4,850)
 Net loss per share $ (0.43) $ (0.23)
 Shares used in per
 share calculations 24,463,259 21,016,379
 -0- 11/12/93
 /CONTACT: Mike Motroni or Carolyn Hayworth of Calgene, 916-753-6313/
 (CGNE)


CO: Calgene Inc. ST: California IN: MTC SU: ERN

LW-TM -- SF014 -- 3963 11/12/93 18:42 EST
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Date:Nov 12, 1993
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