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Bayer CropScience and Plant Health Care sign harpin gene licence agreement - New technology with growth and quality effects for use in Brassica oilseeds

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Monheim. Germany
September 17, 2008

Bayer CropScience AG and Plant Health Care plc have signed a long-term licence agreement for the use of Plant Health Care´s harpin genes in Brassica oilseeds. The naturally occurring Harpin genes encode proteins which support growth and quality effects by increasing the defense mechanisms of the plants against a broad spectrum of pests and diseases. Harpin proteins are classified as biochemical pesticides by the Environmental Protection Agency (EPA).

The arrangement covers all geographic areas except Canada, the U.S.A. and Mexico. Plant Health Care will receive an agreed structured schedule of payments; further financial terms were not disclosed.

“We are pleased to expand our research collaboration with Plant Health Care into the plant biotech field enabling the incorporation of new traits into our oilseeds R&D pipeline. As the leading Brassica oilseeds production company Bayer is committed to develop a new generation of varieties with greater productivity and improved quality for our customers”, stated Dr. Michiel van Lookeren Campagne, Head of BioScience Research for Bayer CropScience. Dr. Greg Lewis, Vice President of Corporate Development for Plant Health Care commented: “We are delighted that a company of the stature of Bayer CropScience has recognized the intrinsic value of the harpin genes in this application.”

Dr. Zhongmin Wei, Chief Scientific Officer & Vice President of Harpin Technologies for Plant Health Care, and discoverer of the technologies, states that within the company’s harpin gene library there is the potential for different genes and gene combinations to produce many and varied effects in plants ranging from increases in growth and yield to enhancement of resistance to pests, diseases and environmental stressors. Dr. Wei further commented: “In many experiments with multiple crops containing harpin genes, researchers have shown increases in growth, enhanced resistance to nematodes as well as fungal, bacterial and viral diseases; plus evidence of tolerance to salinity.”

Bayer is a global enterprise with core competencies in the fields of health care, nutrition and high-tech materials. Bayer CropScience AG, a subsidiary of Bayer AG with annual sales of about EUR 5.8 billion (2007), is one of the world’s leading innovative crop science companies in the areas of crop protection, non-agricultural pest control, seeds and plant biotechnology. The company offers an outstanding range of products and extensive service backup for modern, sustainable agriculture and for non-agricultural applications. Bayer CropScience has a global workforce of about 17,800 and is represented in more than 120 countries.

Plant Health Care plc (“PHC”) is a leading provider of natural products for plants and soil. Established in 1995 in Pittsburgh (Pennsylvania) in the United States, PHC currently has approximately 70 employees and has operations in the US, Mexico, UK, Spain, and the Netherlands. The Company listed on the AIM market of the London Stock Exchange in July 2004. Ticker symbol is PHC. PHC’s products are aimed at the landscape, agriculture and land reclamation industries and are environmentally beneficial. Through the commercialization of these products, PHC is capitalizing on current long-term trends toward natural systems and biological products for plant care and soil and water management.

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