Agritope, Inc. (Nasdaq: AGTO) today reported that, for the year ended September 30, 1998, revenues were $2.8 million, an increase of 80% over revenues of $1.6 million reported for fiscal 1997. The net loss for the period was $5.2 million ($1.42 per share), compared to a loss of $8.7 million ($3.23 per share) in fiscal 1997. The improvement in operating results for the fiscal year is largely due to the fact that the first quarter of fiscal 1997 included non-recurring charges of  $3.1 million.

For the fourth quarter of fiscal 1998 ended September 30, 1998, revenues more than doubled to $1.9 million, as compared with revenues of $883,000 in the prior year. The net loss for the quarter was reduced to $1.5 million ($.37 per share) versus a loss of $2.2 million ($.83 per share) for the fourth quarter of fiscal 1997.

Research and development costs in the current fiscal year reflect increased activity in targeting new fruit and vegetable crops for the company's ethylene control technology as well as stepped-up research in assessing the potential of technology obtained from the Salk Institute. Costs and expenses for this year also reflected additional charges incurred in the establishment of Agritope as an independent company, including a move to a new location that occurred in mid-March.

During the quarter, despite adverse weather conditions that delayed customer plantings, Vinifera shipped $1.7 million of grapevines for the 1998 planting season, bringing annual sales to $2.6 million, an increase of 79% as compared to sales of $1.4 million in 1997. Vinifera experienced negative margins in 1998 due to a non-recurring charge of $974,000 to recognize fourth quarter losses of plants and lower than expected grafting yield as a consequence of unseasonable weather conditions.

A tabulation of operating highlights and balance sheet data follows:

Agritope, Inc. is an Oregon-based agricultural biotechnology company that develops improved plant products and provides technology to the agricultura industry. Agritope is also the majority owner of Vinifera, Inc., which offers grapevine plant propagation and disease screening and elimination programs.

Statements in this press release about future events or performance may be considered "forward-looking statements" under Federal securities laws and are subject to risks and uncertainties. With respect to the Company these may include loss or impairment of sources of capital; dependence on strategic partners; uncertainties relating to patents and proprietary information; dependence on key personnel; technological change and competition; uncertainties as to acceptance of genetically engineered products; and changes in laws or regulations. Actual results could be quite different from those described or contemplated by forward-looking statements. Accordingly, readers are cautioned not to place undue reliance on forward-looking statements.

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