Auckland, New Zealand
July 16, 2002

Genesis Research and Development Corporation Ltd (NZSE/ASX: GEN) today announced that it has contracted to receive a $6.0 million grant from the Foundation for Research Science and Technology over 4 years to fund a research programme investigating plant signalling processes.

This program is focused on identifying new plant hormones as lead compounds that will underpin new agricultural practices, particularly hormones controlling fundamental plant processes such as growth and flowering.

Genesis intends to develop plant current hormone modulators that will not require genetic modification of plants or the use of agrichemicals. The initial goal is to identify plant hormones from gene footprints in Genesis EST databases and to use this knowledge for crop yield improvement and reducing environmental chemical impact.

The Genesis plant signalling program will involve an industrial scale gene-screening process to identify new hormone molecules from these genetic footprints. This broad-based discovery program has the potential to create new technology and commercial platforms that can positively impact on the emerging New Zealand plant biotechnology industry.

One such application would be to produce natural plant regulators on an industrial scale, which can be applied to plants externally to enhance growth traits.

Approximately 13 staff will be involved in this programme.

About Agricultural Biotechnology

The world still faces the challenges of feeding a growing population, reducing the number of people suffering from hunger, and overcoming environmental threats of flooding, drought, erosion etc. Available arable land is limited so it is important to achieve increased yield from existing farmland.

Agricultural biotechnology has the potential to meet these challenges through utilising

natural plant molecules that stimulate growth, cope with adverse growing conditions, control the timing of flowering or aid in pest and disease resistance.

Such technology has potential internationally as well as in New Zealand.

About Genesis

Founded in 1994, Genesis is a New Zealand-based biotechnology company committed to the development of innovative products in health and plant biotechnology from its broad genomic platform. Genesis partners with industry leaders to develop products which have global market potential through the mining of its extensive microbe, plant and mammalian EST databases.

The Plant Sciences division is focusing on key cell signalling genes - novel hormones and transcription factors - to control commercial traits including growth rates and wood fibre quality in trees, nutritional content of forage grasses, flowering control, salt and cold tolerance. It has developed comprehensive plant EST databases including the world’s largest EST database for commercial forestry species. It has research collaborations with ArborGen LLC, Wrightson (NZSE: WRI), HortResearch, AgResearch and Landcare. Genesis is also undertaking significant unpartnered research programmes in novel plant hormones. A number of patents are held including 12 steps in the production of lignin.

Genesis’ Health Sciences Division focuses on signalling pathways involved in immune diseases and cancer and has an extensive patent portfolio. It has three programmes in human clinical development utilising PVAC™ and AVAC™ for the treatment of psoriasis, atopic dermatitis (eczema) and asthma. Additional pre-clinical programmes are developing YB-1, FGFR5 and Epigen as targets for treatment of cancer and immune mediated diseases. The patented BioStore solutions for storage of tissues and living cells are also in pre-clinical development. Collaborations are maintained with Immunex Corporation (NASDAQ: IMNX), Corixa Corporation (NASDAQ: CRXA), SR Pharma (LSE: SPA), and Jurox Pty Ltd.

For more information, please visit www.genesis.co.nz