Hayward, California
November 26,  2001

Mendel Biotechnology, Inc. ("Mendel") today announced a new five-year, $20 million research and commercialization partnership with Monsanto Company ("Monsanto"). This new partnership expands the relationship initiated in 1997 in which Mendel successfully identified many genes that regulate high-value plant traits such as enhanced yield, drought resistance, and disease resistance. If commercialized, Mendel will receive royalties from Monsanto on products containing these genes.

"Mendel is extremely pleased that Monsanto has agreed to this expansion of our strategic partnership to discover and advance high value, plant genes," said Dave Summa, Mendel's president and chief executive officer. "Our first collaboration was about discovering gene function. This new collaboration will continue that successful work and move into lead advancement. Monsanto is a world leader in the development and commercialization of high-value, sustainable agricultural products that bring value to growers and improve the abundance and nutritional value of food and feed crops. They are a great channel to global agricultural markets for Mendel's discoveries."

Rick Stonard, Ph.D., vice president of genomics at Monsanto added, "Mendel has delivered on time and on budget. This extension provides Monsanto with continuing access to Mendel's gene function discovery and lead advancement capabilities. We expect that Mendel will continue to play an important role in our integrated genomics network."

Mendel Biotechnology, Inc. is a pioneer in the application of functional genomics to the study of plant genes. Mendel's mission is to discover and characterize the function of important plant genes and to develop and commercialize high-value products based on these discoveries. These products will benefit customers in agriculture, healthcare, specialty ingredient, forestry and horticulture markets. Mendel has a growing collection of the most valuable genes in the plant kingdom, and is pioneering new technologies to bring these discoveries to markets globally. For more information, visit: www.mendelbio.com.

Company news release
N3979