Davis, California
September 22, 2003

This Milestone Marks the Company's First Entry Into the Ornamentals Market

AgraQuest, Inc. is pleased to announce approval of its Rhapsody® Biopesticide, by the United States Environmental Protection Agency for disease control of ornamental crops, including annual and perennial flowering plants, tropical foliage, and trees and shrubs.

Rhapsody is the only product to provide effective control of a wide array of both bacterial and fungal pathogens, while providing unsurpassed plant, human and environmental safety. It is the only biological bactericide/fungicide that is an effective alternative to coppers for bacterial diseases, such as Erwinia and Xanthomonas and to synthetic chemicals for fungal pathogens such as powdery mildews and Botrytis gray mold. With the lowest re-entry interval of any product (4 hours), Rhapsody provides growers flexibility and labor costs savings.

Rhapsody is based on a naturally occurring patented strain of Bacillus subtilis discovered and developed by AgraQuest's scientists. Equipped with a suite of naturally occurring antifungal and antibacterial lipopeptide compounds, Rhapsody utilizes multiple modes of action, which make it difficult for pathogens to develop resistance. Therefore, it is a powerful tool when used in a program with chemical fungicides that are weakened by resistance development.

Rhapsody is one of several products in AgraQuest's extensive pipeline. Also pending at the EPA are Arabesque(TM) Biofumigant, Sonata® Biofungicide and Virtuoso(TM) Bioinsecticide. The company also is launching an adjuvant (Biotune(TM)) that is formulated to enhance the efficiency of biological disease control products.

AgraQuest is a biotechnology company that focuses on discovering, developing, manufacturing and marketing effective, safe and environmentally friendly natural pest management products for the agricultural and institutional and home markets. Internationally recognized venture capital firms, influential growers and agribusinesses back AgraQuest. AgraQuest received the 2003 Presidential Green Chemistry Award for the development of Serenade® Biofungicide.