``Completion of this update of our gene function database is a very significant accomplishment for Mendel. It puts us on track to complete all milestones in our strategic partnership with Savia and Monsanto fully one year ahead of the original schedule,'' said Dave Summa, President and CEO of Mendel. ``In November 1997, Mendel, Savia and Monsanto initiated a strategic partnership that required Mendel to identify, clone and functionally characterize a minimum number of plant genes over a five-year period. However, Mendel scientists significantly accelerated our gene function discovery engine, and now will functionally characterize more than the minimum number of genes within four years.''

Dr. Peter Davis, President of DNA Plant Technology (DNAP), the plant biotechnology subsidiary of Savia, added, ``The quality of Mendel's gene function program is excellent and Mendel has been an effective partner in DNAP's trait discovery efforts. Mendel continues to be a leader in the identification of very promising genes to improve the yield, disease resistance, environmental stress tolerance, and improved nutritional quality of plants for the benefit of farmers and consumers.''

``Mendel has met our expectations for functionally characterized genes,'' said Dr. Rick Stonard, Vice-President of Genomics for Monsanto. ``The quality and number of commercial leads provided by Mendel remains on track, and validates the value of Monsanto's early investment in Mendel and plant genomics.''

Savia has options to develop and commercialize Mendel's discoveries in certain vegetables and fruits. Monsanto has options to develop and commercialize Mendel's discoveries in certain agricultural crops. Mendel retains all rights to develop and commercialize discoveries in all other plants, including forestry and horticultural plants, important agricultural crops such as barley, oats, sorghum, sugar beets, and sweet potatoes, and various specialty oil seed crops.

About Mendel Biotechnology

Mendel Biotechnology, Inc. is a pioneer in the application of functional genomics to the study of plant genes. Nature already produces a rich diversity of plant-derived products that provide much of the world's food, feed, fiber and fine chemicals. Functional genomics seeks the genetic keys to unlock this diversity. Mendel's business objective 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.