November 7, 2001 -- Dow AgroSciences has notified Demegen Inc. that its agreement to commercialize Demegen technology for disease-resistant crops and protein-enhanced crops will be terminated over the next four
to six months as provided for in the agreement. The agreement was originally with Mycogen, Inc. and subsequently applied to Dow AgroSciences through its acquisition of Mycogen.

"We are disappointed by this action by Dow AgroSciences," says Richard Ekstrom, president of Demegen. "Especially for disease-resistant crops, numerous public and private groups, domestic and
international, have been impressed by this technology. Separate from Dow AgroSciences, Demegen has numerous active collaborations in a variety of crops including rice, apples,
grapes, eucalyptus, lilies, pear, potato and sweet potato. Demegen is actively seeking agreements with new licensees and research collaborators." Demegen anticipates a reduction in staff as a result
of the termination of the Dow AgroSciences agreement.