Ecogen Inc., a leading developer of environmentally friendly biopesticides, announced today that it has completed the acquisition of the sprayable Bt bioinsecticide business of Mycogen Corporation, an affiliate of Dow AgroSciences. Upon signing the final agreements, Mycogen has become an 11% shareholder in Ecogen. The Company also announced financial results for its fiscal year and fourth quarter ended October 31, 1999.

Beginning January 1, 2000 and continuing until the final agreements were signed on February 15,
2000, Ecogen distributed the principal products covered in the acquisition agreement: MVP® for
control of lepidopteran pests in vines and vegetables, MVP®II for control of lepidopteran pests in
trees, nuts, vines and row crops and Mattch(TM) for control of lepidopteran pests in vegetables.
Under the terms of the final agreement, Ecogen acquired finished goods inventory and certain
intangible assets, principally a fully paid-up license to certain Bt genes and strains, including
amounts due now and in the future under a previous settlement agreement between Mycogen and
Ecogen, and registration and data citation rights.

Ecogen's net continuing product sales for the fiscal year ended October 31, 1999 decreased 20%
from the prior fiscal year, which the Company believes is in line with declines experienced by other insecticide companies in the U.S. As reported in the announcement of its third quarter results, the Company did not expect to meet the street estimate for fiscal 1999, due to the depressed insecticide market in the U.S. Fourth quarter sales were significantly impacted by inventory levels at distributors from the Company's sales during the first nine months of fiscal 1999. Net product sales in the fourth quarter declined $2.9 million when compared to the fourth quarter of fiscal 1998.

Operating expenses for fiscal 1999, comprising research and development and selling, general and administration expenses, declined 9% when compared to the year-ago period.

For fiscal year 1999, the Company's net loss allocable to common stockholders increased to
($9.8) million, or ($1.05) per basic and diluted share, from a net loss for the year-ago period of
($3.1) million, or ($0.39) per basic and diluted share. The higher losses in fiscal 1999 are primarily
related to: (i) $4.6 million in lower contract research revenue as a result of the expiration of the
Monsanto contract in January 1999, (ii) $1.3 million in lower gross margins on product sales, offset to a large degree by the $.9 million decrease in operating expenses, (iii) $.6 million recognized as a gain on the sale of the pheromone product line in the second quarter of fiscal 1998, and (iv) $1.0 million higher preferred stock dividends including $.8 million in a non-cash, assumed incremental yield on the preferred stock. Weighted average basic and diluted shares outstanding for fiscal 1999 and 1998 were approximately 9.2 million and 8.1 million, respectively.

"We, along with many in the industry, are relieved to have the 1999 growing season behind us.
Since our year end, we have secured $3.0 million in additional financings and have completed the
acquisition of the Mycogen sprayable Bt bioinsecticide business,'' said James P. Reilly, Jr., the
Company's Chairman and Chief Executive Officer. "We are pleased to report that as a result of
the acquisition, Dow and its affiliates are a principal stockholder of Ecogen. During fiscal 2000, we will continue to pursue additional financings to improve our balance sheet and strategic initiatives to grow our business, while striving to reduce operating expenses.''

"Acquisition of the Mycogen sprayable Bt line broadens Ecogen's product portfolio and distributor
base,'' Mr. Reilly added. "Ecogen began distribution of the Mycogen Bt products early in January
2000 and is proceeding rapidly towards fully integrating the new products within our marketing
efforts.''

The Company's balance sheet at October 31, 1999, included working capital of $3.0 million,
long-term debt of $2.0 million and stockholders' equity of $1.0 million. Subsequent to October 31,
1999, the Company obtained a secured loan for $1.5 million to be used for working capital and
issued $1.5 million of 7% convertible preferred stock. On a pro forma basis, assuming the loan, the preferred stock and the acquisition of the Mycogen business had taken place at October 31, 1999, working capital, long-term debt and stockholders' equity were $4.3 million, $1.3 million and $5.6 million, respectively.

Ecogen is a leader in the development of natural microbial pesticide products for the control of
plant disease and insect pests. Ecogen's growing portfolio of products has been developed to
address the concerns of pest management with the added assurance of environmental compatibility. The Company's products include biofungicides -- Aspire® for post-harvest rot disease and AQ10® for powdery mildew, as well as its Bt bioinsecticides-- CRYMAX®, Lepinox® and Condor® and the recently acquired Bt's -- Mattch(TM), MVP® and MVP®II to control
caterpillars. Additional bioinsecticides under development include Cruiser®, an insecticidal
nematode for soil applications and CryStar(TM), a Bt bioinsecticide for mosquito control.

Company news release
N2517