December 9, 2002 -- Prodigene Inc. has agreed to pay a civil penalty of $250,000 for allowing soybeans in Nebraska to be contaminated by genetically modified corn. In addition, the College Station, TX, company will reimburse the U.S. Department of Agriculture (USDA) for all costs to acquire the approximately 500,000 bushels of soybeans in storag, destroy the
beans and clean the facility and all equipment.

Prodigene and USDA have signed a consent decision and order regarding violations of the Plant Protection Act (PPA). ProdiGene also agreed to a $1 million bond and higher compliance standards, including additional approvals before field testing and harvesting genetically modified material. The company will develop a written compliance program with USDA to ensure that its employees, agents, cooperators and managers are aware of, and comply with, the Plant Protection Act, federal regulations and
permit conditions.

“Perhaps the most significant fact related to the incident is that the soybeans never reached the human or animal food supply, proving that the evolving mechanism for oversight of biotech crops is working as designed. Corn growers believe this technology has great promise, so we need to assure proper management in production, harvesting and distribution and even additional training so it reaches its full potential,” says Steve Pigg, president of the Illinois Corn Growers Association.