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Pioneer Hi-Bred International lawsuit unfounded
July 31, 1998

Pioneer Hi-Bred International Inc., in its lawsuit against American Ag-Tec International, Ltd. alleging patent infringements and violations of intellectual property rights, is a prime example of a large corporation with sufficient budget to press a lawsuit against a small business in an attempt to fish for answers which do not exist. In this ‘David vs. Goliath’ case the "world’s leading supplier of agricultural genetics and . . the leading integrator of agricultural technology" has alleged that Ag-Tec has hybrid and inbred seed fields growing in five states and warehouses of seed for export. Despite a categorical denial of these allegations by Ag-Tec and statements under oath, Pioneer has pressed on with court ordered discovery of company records and files in an effort to disprove the denial of Ag-Tec against all claims and charges of Pioneer.

Ag-Tec fears that Pioneer’s lawsuit may be a cover for other interests of Pioneer, namely the acquisition of information regarding Ag-Tec’s own proprietary biotechnology. Prior to Pioneer’s lawsuit, Ag-Tec was recently contacted by a person who entered Ag-Tec’s premises in Delavan, Wisconsin, posing as a representative of an investor group interested in Ag-Tec’s revolutionary biotechnology developments in the seed potato industry. Ag-Tec was then asked about its seed potato technology under the guise of a potential investment. This same person next appeared as part of an official Pioneer contingent when Ag-Tec, as defendant in the case, voluntarily met with Pioneer representatives in an attempt to explain its lack of involvement regarding Pioneer’s allegations.

Pioneer subsequently rejected the information and explanation provided by Ag-Tec and proceeded with court ordered discovery of Ag-Tec’s company records. Ag-Tec is understandably concerned since those records also contain sensitive information regarding its seed potato technology as well as financial and other sensitive matters pertaining to the unique potato technology.

American Ag-Tec International, Ltd. has developed a revolutionary biomanufacturing method of providing pathogen-free seed potatoes known in the industry as minitubers, and which are the first stage of production for seed potatoes. This patented rapid-growth technology which has been coupled with space technology obtained through an agreement with a NASA Center at the University of Wisconsin-Madison, is a revolutionary method for producing potato minitubers by the tens-of-millions rather than by the thousands of minitubers currently grown under standard technology. This new technology is expected to change the way in which seed potato has been grown for decades by the elimination of from 5 to 7 field multiplications (years of production) from the normal seed potato generation system down to only 2 field multiplications. The resulting potatoes will produce significantly higher yields of commercial potato which are of much higher quality than today’s current potato production. The impact of this technology on the world’s fourth largest seed crop (potato) will have dramatic impact to the world’s food production, and will provide the potential for substantial economic returns and market dominance for the holder of this important technology.

SOURCE: American Ag-Tec International, Ltd.

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