Agritope, Inc. (Nasdaq: AGTO) today reported that its majority owned subsidiary, Vinifera, Inc. has sold 898,269 shares of common stock to its minority shareholders for $1.8 million. In conjunction with the private placement transaction, Agritope exchanged $4.0 million of working capital loans for 2.0 million shares of common stock of Vinifera. Upon completion of the placement, Agritope's equity interest increased from 61% to 64% and the total number of Vinifera shares of capital stock increased from 5,000,000 shares to 7,898,269 shares.

"This financing provides us with a stronger capital base as we continue to grow the business," said Joseph A. Bouckaert, president and chief executive officer of Vinifera. "For the year ending this September, we expect to achieve sales of approximately $2.8 million, an increase of 100% over last year's sales record of $1.4 million. We are pleased that more growers are placing orders with us each year in recognition of our superior product quality and excellent customer service. We are also pleased that our shareholders showed their faith in the future of Vinifera by increasing their investment."

Founded in 1993 to serve premium wine grape growers, Vinifera has greenhouse facilities in Petaluma, California and motherblock fields in Vacaville. Vinifera offers a wide selection of high quality scion material and phylloxera-resistant rootstock. Through Agritope, Vinifera provides unique disease diagnostic programs to assure that its plants are disease-free.

Agritope, Inc. is an Oregon-based agricultural biotechnology company specializing in fruit and vegetable crops.

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