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CALGENE ANNOUNCES THIRD QUARTER RESULTS; FLAVR SAVR PRODUCT LAUNCH INVESTMENTS INCREASE

 DAVIS, Calif., May 7 /PRNewswire/ -- Calgene Inc. (NASDAQ: CGNE) today announced a net loss of $5,777,000 ($0.25 per share) on revenues of $10,855,000 for the third fiscal quarter ended March 31, 1993. This compares with a net loss of $2,387,000 ($0.20 per share), on revenues of $10,209,000 during the same period last year. The revenue increase in the current period reflects the inclusion of $2,088,000 in product sales from Hodag Chemical Corp., a specialty oleochemical manufacturer acquired in July 1992. The positive contribution by Hodag was partly offset by lower cotton seed sales primarily due to timing, lower industrial rapeseed oil sales and lower product development revenues due to the conclusion of certain research contracts. The higher loss in the third quarter reflects a $1,818,000 increase in selling, general and administrative expenses. The increase in SG&A expenses is largely due to start-up expenses associated with Calgene Fresh, a subsidiary formed in January 1992 to commercialize the FLAVR SAVR(TM) tomato and the inclusion of Hodag. In addition, research and development expenses for the quarter were $3,903,000 an increase of 26 percent from the prior year's $3,092,000. The increased R&D expense reflects added product development costs associated with expanded rapeseed and cotton field trial activity as well as higher regulatory expenses and expenses from testing tomato distribution and packaging methods.
 For the nine months ended March 31, 1993, Calgene reported a net loss of $16,881,000 ($0.76 per share) on revenues of $20,601,000, compared to a net loss of $11,170,000 ($0.87 per share) on revenues of $18,210,000 during the same period of the previous year. The higher loss in the first nine months of fiscal 1993 reflects a $3,882,000 increase in selling, general and administrative expenses largely due to Calgene Fresh and the inclusion of Hodag. The loss for the first nine months of the prior year included $2,000,000 for the purchase of the exclusive North American fresh market tomato rights to the FLAVR SAVR gene from Campbell Soup Co.
 "The results were as planned and reflect our growing investment in Calgene Fresh as we prepare for the targeted market introduction of the FLAVR SAVR tomato this Fall. Investments are also being made at Stoneville and Calgene Chemical as we approach commercialization of genetically modified cotton seed and canola oil," said Roger Salquist, Calgene's Chief Executive Officer. "In addition to these internal infrastructure advances, nine separate technology license agreements were recently signed between Calgene and Monsanto. These licenses clear potential patent obstacles to timely commercialization of Calgene's genetically engineered crops."
 Calgene is an agribusiness biotechnology company that is developing improved plant varieties and plant products for the fresh tomato, cotton seed and specialty industrial and edible oils businesses.
 CALGENE INC.
 Condensed Consolidated Statements of Operations
 ($ in thousands, except per share amounts)
 (Unaudited)
 Three Months Nine Months
 Ended March 31 Ended March 31
 1993 1992 1993 1992
 Revenues:
 Product sales, net $ 9,976 $ 9,093 $17,215 $13,770
 Product development
 revenues 388 744 1,775 2,876
 Interest income 422 306 1,215 1,315
 Other income, net 69 66 396 249
 Total 10,855 10,209 20,601 18,210
 Costs and expenses:
 Cost of goods sold 7,748 6,918 14,413 10,364
 Research and development 3,903 3,092 10,818 9,268
 License purchase --- --- --- 2,000
 Selling, general and
 administrative 4,389 2,571 11,338 7,456
 Interest expense 158 215 541 572
 Total 16,198 12,796 37,110 29,660
 Minority interest share
 of net loss 41 242 46 349
 Equity in net loss of
 affiliates 497 --- 497 44
 Gain (loss) from sale of assets 13 (7) 88 35
 Loss before income taxes (5,786) (2,352) (16,872) (11,110)
 Provision for income taxes (9) 35 9 60
 Net loss $(5,777) $(2,387) $(16,881) $(11,170)
 Preferred stock dividends $ --- $ 700 $ --- $ 2,099
 Net loss applicable
 to common shareholders $(5,777) $(3,087) $(16,881) $(13,269)
 Net loss per share $ (0.25) $ (0.20) $ (0.76) $ (0.87)
 Shares used in per share
 calculations 23,578,744 15,676,594 22,256,725 15,297,274
 -0- 5/7/93
 /CONTACT: M. Motroni of Calgene, 916-753-6313/
 (CGNE)


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

SG-TM -- SF012 -- 6041 05/07/93 14:52 EDT
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Date:May 7, 1993
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