Epitope, Inc. (NASDAQ: EPTO) today announced that its wholly owned subsidiary Agritope, Inc. has been awarded a grant from the U.S. Department of Commerce, National Institute of Standards and Technology (NIST), Advanced Technology Program (ATP). The ATP grant will provide funding of approximately $1 million over a three-year period to support genetic engineering research to control the ripening process of certain tree fruit and bananas.

Agritope has identified and patented a single gene that can be inserted into plants through techniques of plant genetic engineering and expressed to regulate the plant's ability to produce the ripening hormone ethylene. The focus of Agritope's ATP- funded research will be to use the tools and techniques of plant genetic engineering to precisely regulate the ripening process in apples, peaches, pears and bananas.

"The ATP award to Agritope validates our genetic modification approach to controlling the deleterious effects of ethylene in ripening fruits. This grant will provide us with the opportunity to demonstrate the potential for improving product quality as well as production economics in these ethylene-sensitive crops. We believe that this award further demonstrates the value of plant genetic engineering in sustaining and enhancing the vitality of the U.S. agricultural economy" said Adolph J. Ferro chairman, president and chief executive officer of Agritope.

Agritope's partner in the tree fruit portion of this program is Van Well Nursery, a leading North American tree-fruit nursery based in Wenatchee, WA. Agritope will perform the molecular and cell biology component of the project and will transfer the genetically modified trees to Van Well Nursery for grow-out and fruit production.

The banana portion of the program will combine the expertise of Agritope with the resources of the Boyce Thompson Institute for Plant Research, Inc. (BTP). BTI, located in Ithaca, New York, is an endowed non-profit foundation associated with Cornell University whose goal is to expand the frontiers of plant biology research. Under the direction of Dr. Charles J. Arntzen, BTI has developed broad-based expertise in the genetic modification of banana while pursuing a program of edible vaccine production in the fruit.

The ATP program provides cost-shared funding to industry for high risk R&D projects with the potential to initiate important economic benefits for the U.S. The awards are made on the basis of a rigorous competitive review considering scientific and technical merit of each proposal and its potential benefits to the U.S. economy.

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