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KeyGene and the U.S. Department of Agriculture sign long-term collaboration on pepper research

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Wageningen, The Netherlands
May 29, 2008

Keygene, Inc. and the United States Department of Agriculture - Agricultural Research Service (USDA/ARS)
signed a Cooperative Research and Development Agreement (CRADA) to collaborate on the
characterization of pepper germplasm with enhanced flavor.

The three year agreement is part of KeyGene's "Dare to Share" initiative, an "open innovation" concept
that enhances molecular genetics research towards novel industry applications. Building on the success
of its parent company in Europe, Keygene, Inc. intends to collaborate with US industry and public
sector partners to share knowledge and enabling technologies.

The CRADA collaboration will be based on an existing culinary pepper project developed by Dr. John
Stommel and his colleagues at the USDA-ARS Genetic Improvement of Fruits and Vegetables
Laboratory in Beltsville. The ARS pepper program has successfully utilized diverse Capsicum
germplasm resources to breed award winning pepper cultivars. Applying KeyGene's advanced genetic
fingerprinting technology, the program will enable the identification of the different accessions to
develop bell pepper cultivars with improved taste characteristics. "Our new collaboration with KeyGene
brings together complimentary disciplines to address complex research problems related to pepper fruit
quality" said Dr. John Stommel.

"In working together with the USDA, we expect that progress can be achieved toward bell pepper
breeding with improved taste and flavor," according to Prof. Dr. Arjen van Tunen, President of Keygene,
Inc. "We are extremely pleased to start this research project and we believe that the CRADA agreement
allows us to further broaden our work on the application of molecular genetics in vegetable breeding."

The Agricultural Research Service (ARS) is the U.S. Department of Agriculture's chief scientific research agency. Finding solutions to agricultural problems that affect Americans every day, they host 1,200 research projects within 22 National Programs, about 2,100 scientists with an estimated $1.1 billion fiscal year 2007 budget. The Genetic Improvement of Fruits and Vegetables Laboratory is part of the USDA-ARS and focuses on the development of germplasm for high value small fruits and vegetables with improved disease resistance, tolerance to abiotic stresses, quality, and nutritional value.
About Keygene, Inc.

Keygene, Inc., a Maryland based subsidiary of Keygene N.V., aims to deliver molecular genetics innovations to plant breeding companies across the United States. With commitment and a keen proficiency in genetic marker development and experience in providing bioinformatics support, KeyGene has earned an excellent track-record in delivering reliable molecular breeding and trait strategies.

Keygene N.V., located in Wageningen, the Netherlands, is a R&D company with the mission to be the leading company in developing and applying DNA expertise in the field of molecular genetics. In recent years KeyGene invested in next generation sequencing platforms such as the Roche GS-FLX system (454 technology) and the Illumina Genome Analyzer (Solexa technology). KeyGene has developed a strong proprietary technology platform based on AFLP®, a DNA marker technology for genome analysis, transcript profiling and genetic analysis. For diagnostic purposes, SNPWave® a multiplexed SNP detection technology was developed. KeyGene exploits its proprietary technologies, databases and know-how through contract research and products for applications in the Life Sciences industry and more specifically in innovative breeding applications such as Breeding by Design™, CRoPS® and KeyPoint™. KeyGene's five shareholder companies De Ruiter Seeds, ENZA Zaden, Rijk Zwaan, Vilmorin & Cie and Takii & Co. are major vegetable seed companies. KeyGene has around 120 researchers and staff.

The AFLP®, SNPWave®, CRoPS® and KeyPoint™ technologies are covered by patents and/or patent applications of Keygene N.V. AFLP,
SNPWave and CRoPS are registered trademarks of Keygene N.V. Applications for trademark registration for Breeding by Design, KeyPoint and KeyGene have been filed by Keygene N.V.

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