Phoenix, Arizona
August 13, 2002

Seaphire International today announced the acquisition of exclusive worldwide licenses to technologies that have resulted in the development of plants which grow and thrive when fertilized with significantly lower levels of nitrogen than normally required. Seaphire, a privately held agricultural biotechnology company says the opportunity from this acquisition is immense, as farmers worldwide spend more than $30 billion annually on nitrogen fertilizer.

Seaphire licensed the technology from AgriGenomics, Inc., a technology spin-off of the University of Alberta in Edmonton, Canada. The nitrogen-use-efficiency (NUE) and related proprietary technologies were initially developed at the University, where they were invented by a research group under the direction of Allen Good, PhD.

"Modern agriculture is heavily dependent upon nitrogen, which is a major production cost factor. The NUE technology is an example of Seaphire's goal to make agriculture more economically and environmentally sustainable," said Roy Hodges, president and CEO of Seaphire.

"What most people don't realize is that as much as half of the nitrogen currently applied as fertilizer is not absorbed by plants and ultimately runs off, creating environmental problems. Nitrogen-use-efficient plants will reduce production costs for farmers and benefit the environment."

By increasing the activity of a natural plant gene, Dr. Good's research group has developed canola plants that extract nitrogen from the soil more efficiently than conventional canola plants, resulting in comparable growth and yield, but with lower nitrogen added. The performance of these plants has been demonstrated in both laboratory and field trials.

Nitrogen, along with phosphorous and potassium, is a key plant "macronutrient" required for plant growth and development. Unabsorbed nitrogen usually ends up in ground water, streams, lakes and the ocean, where it often causes significant environmental problems. Extreme cases of nitrogen contamination of ground water supplies have been associated with "blue baby syndrome," in which the blood's ability to transport oxygen is reduced and can result in death. Nitrogen pollution of rivers, lakes and coastal waters also may result in algae "blooms." These areas of explosive algae growth suffocate aquatic flora and fauna, often leading to long-term damage or destruction of local ecosystems.

According to the Worldwatch Institute, a non-profit public policy research organization focusing on emerging global problems and trends and the complex links between the world economy and its environmental support systems, "Over the past half century, the amount of biologically active nitrogen
circulating through the world's living things has probably doubled. In unnatural excess, an essential nutrient is becoming a kind of ecological poison." [1]

Dr. Good, CEO of AgriGenomics, said, "The relationship between AgriGenomics and Seaphire brings a nearly perfect alignment of AgriGenomics' technical capabilities with Seaphire's business focus and product development resources. This collaborative relationship is expected to increase the pace of development of this technology."

Seaphire International, based in Phoenix, Arizona, is an agricultural biotechnology company that develops and commercializes sustainable technologies for agriculture and aquaculture that improve the human condition and provide environmental and economic efficiencies. Seaphire is a wholly owned subsidiary of Exeter Life Sciences, Inc., a multidisciplinary company with operating units addressing market opportunities in human, animal and plant health.

AgriGenomics, based in Edmonton, Alberta, Canada, is a privately held agricultural biotechnology company focused on increasing crop performance by improving biological processes in plant root systems.

[1] "Toxic Fertility," Worldwatch Institute, World Watch, March/April 2001.