Responding to investor inquiries, Ecogen Inc. confirmed today that the Bacillus thuringiensis (Bt) toxin gene, Cry2Ab is one of two genes utilized by the Monsanto Company as the active ingredient in its new insect resistant cotton. That gene is a product of Ecogen's research collaboration with Monsanto.

Upon government approval and commercialization by Monsanto, revenue generated by Monsanto
from this proprietary Bt cotton would be subject to commercialization fees due Ecogen under a 1996 agreement between the two companies.

This is the second Ecogen gene to be utilized by Monsanto in products that have been submitted by Monsanto for EPA approval. The first gene was Cry3Bb for the control of corn rootworm.

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 diseases and AQ10® for powdery mildew, as well as the Bt bioinsecticides-- CRYMAX®, Lepinox®, 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 product for soil insect pest control and CryStar(TM), a Bt bioinsecticide for mosquito control.

Company news release
N2961