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In 2004, AgraQuest received a
Red Herring Top 100 Private Company Award and a World Technology Award. House Appropriations
Committee today authorized seven million dollars as a first step to implement
the landmark Specialty Crop Competitiveness Act which became law late last
year.

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Passage of the referendum requires either:

Of those who vote, 65 percent vote "yes" and the "yes" voters
must have paid the majority of the assessment that was paid by
those who voted, or

Of those who vote, a majority vote "yes" and the "yes" voters
must have paid 65 percent or more of the assessment that was
paid by those who voted.

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This is just the first step in the
implementation of this very positive legislation and, we believe, a harbinger
of many good things to come for our sector of agriculture .

seeding bean

Ballad is approved for use in organic
agriculture by OMRI and the National Organic Program. There are no known varieties that are resistant to
soybean rust, but the USDA is working on developing varieties that will resist
damage. Ballad is
available in 30-gallon drums and 2.com.

seeding harvest

, The U. The timing of this funding is also perfect with the
recent renewed focus on nutrition and the role of fruits, nuts and vegetables
in our diet.wga. The department announced its intention to send
the ballots to California's winegrape growers during the week of May
16, 2004.cdfa.

legumes seeding

While there are several
chemicals that are approved or under emergency exemption for control of
soybean rust in conventional soybeans, Ballad is currently the only product
approved for organic soybeans. Continued Coombs, "Asian soybean rust has
proven to be devastating to soybean yields in South America.S.
"This is a great day for our industry," said Tom Nassif, president of
Western Growers. "It's a
signal from Washington that policy makers understand the tremendous value of
this sector of agriculture and will take the steps necessary to protect and
foster this industry. Over 100 research
projects are already being funded, providing the science needed to
effectively control the pest while also building a research foundation
to better understand and address Pierce's disease.
For more information about the referendum and how assessment funds
have been used to protect the livelihood of California 's winegrape
industry, log on to http://www.

peanuts growers

Western Growers Announces Historic Funding for Specialty Crop Competitiveness Act

For more information, visit http://www.

growers alfalfa

CDFA Announces Process Dates for Pierce's Disease Assessment Referendum

clima harvest

Ballad is based on a naturally
occurring patented strain of the bacterial species Bacillus pumilus, which
produces natural pesticidal compounds.
are forward -looking statements which are subject to known and unknown risks
and uncertainties which may cause the Company's actual results, performance or
achievements to be materially different from any future results, performance
or achievements expressed or implied by these forward-looking statements.
"The implementation of the Specialty Crop Competitiveness Act is a giant
leap forward for the people who have dedicated their lives to providing the
world's best quality fruits, nuts and vegetables ," said Nassif.


crops lentils

is pleased to
announce the launch of Ballad(TM) Biofungicide for control of Asian soybean
rust on organic soybeans and other legumes. The Act was cosponsored by 122 members of Congress
representing farmers who grow more than 250 produce crops ranging from lettuce
in California to melons in Arizona to blueberries in Maine.

edible legumes


Ballad was as effective as the chemical standard, azoxystrobin (marketed
as Quadris(R) and Amistar(R) in various crops) in recent Asian soybean rust
field trials in South Africa. The amount of resources dedicated by the USDA, the
university extension system, and the soybean and agrichemical industries to
address the problem is quite substantial considering the potential impact on
the US soybean market.
Because of the biodegradability of the product, intervals between sprays
should be no more than 14-days.
Such risks and uncertainties include, among others, the receipt of EPA and
other regulatory approval of the Company's products , the success of the
Company's products in field trials and the timely development, manufacture and
marketing and acceptance of the Company's products in the marketplace.

adaptation processors

net ). The fresh produce industry does not receive any direct
federal farm subsidy money."

Western Growers is an agricultural trade association whose 3,000 members
grow, pack and ship 90 percent of the fresh vegetables and nearly 70 percent
of the fresh fruit and nuts grown in Arizona and California, about one-half of
the nation's fresh produce. "More importantly, by assessing themselves, growers
demonstrated their concern to government officials about the PD/GWSS
threat, and we've been able to leverage those funds ten-fold with
state and federal grants to help contain the GWSS."
The PD/GWSS Board, made up of winegrape growers and
grower/vintners from around the state, advises the CDFA secretary on
expenditure of assessment funds to ensure that the research is
responsive to the needs of the grower community .

peanuts harvest


"Organic growers have limited tools to manage this disease," said Chris
Coombs, AgraQuest 's US Business VP.
AgraQuest recommends protecting the crop from flowering to pod fill. In 2003 , AgraQuest won the
prestigious Presidential Green Chemistry Award from the EPA for the discovery
and commercialization of Serenade Biofungicide.

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AgraQuest Launches Ballad(TM) Biofungicide for Asian Soybean Rust

To date, the company
has targeted high value fruits, nuts, vegetables, and home gardens. Growers of other legumes such
as lima beans and snap beans will also be affected. It has a four-hour re-entry
period, is compatible with copper, sulfur and many other products, and has a
high degree of safety to beneficial insects and other organisms."
The Specialty Crop Competitiveness Act authorizes $54.----The California
Department of Food and Agriculture (CDFA) today announced key dates
and details for the upcoming referendum on whether to continue the
Pierce's disease (PD ) assessment, which funds research aimed at
proactively addressing the threat posed by PD and the Glassy-winged
sharpshooter (GWSS).

weed fertilization

"
The disease, originally from China, has been causing serious infections in
South America and came to the United States with hurricane Ivan in 2004. Ballad has no export restrictions, no pre-
harvest interval, and is exempt from CODEX rules.

Certain matters contained in the press release concerning AgraQuest, Inc.

crops mediterranean

We encourage
organic growers to stay ahead of the disease progress and apply Ballad as a
preventative treatment for rust and other diseases that reduce yields.sbrusa.5-gallon containers.

pulse clima

The USDA estimates that there are 500,000-
600 ,000 acres of organic soybeans in the US, growing at a fast pace of more
than 20% new plantings per year. First
detection was in southeastern states but was also found in Missouri this past
fall and as of late April is present in Florida and Georgia
( http://www.

About AgraQuest
AgraQuest is a biotechnology company that focuses on discovering,
developing, manufacturing and marketing effective, safe and environmentally
friendly natural pest management products for agricultural , institutional and
home markets The company sells Serenade and Rhapsody(R) Biofungicides and
recently announced registration of Sonata biofungicide for control of powdery
mildew, downy mildew and rust . House Appropriations Committee Authorizes Initial $7 Million to Implement
New Law and Recognize Critical Importance of Nation's Fresh Produce Industry

IRVINE, Calif.
"To date the current assessment has raised nearly $14 million,"
said Bob Wynn, CDFA's statewide coordinator for the Pierce 's Disease
Control Program.

agronomy soybeans

It is another
symbolic victory and the latest in a series of very positive developments for
those who are responsible for producing our nation's fresh fruits, vegetables
and nuts. Once
the ballots are sent out, they must be returned within 30 days to be
counted .

adaptation pulse

The Act was signed by President Bush in December and is designed to
boost the nation's fresh produce industry through block grants to state
departments of agriculture. Features of the Act include
research to improve produce quality; development of new crop protection tools;
creation of pest management systems; quantification of the clean air benefits
of produce crops; research on the impact of foreign pest and disease and
effective solutions. At least 40 percent of eligible growers must cast ballots to
validate the referendum.

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The high consumer demand for healthy soy
products has sparked the increase, and there are probably another 400,000
acres in transition to organic. Pending at the EPA are Arabesque(TM)
biofumigant and Virtuoso(TM) bioinsecticide.

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Ballad is a
preventive product and should be used before rust infections appear. The funding will be used to enhance the industry
through technical assistance, research, promotion, education and related
initiatives.5 million annually
for five years to enhance the competitiveness, both domestically and
internationally , of American fresh produce.

Following the devastating 1999 outbreak of the Glassy-winged
sharpshooter in Temecula, the industry quickly mobilized in support of
a self-assessment to halt the pest's spread and fund PD research.ca.

soybeans lentils

The First Biofungicide Registered for Organic Soybeans

DAVIS, Calif., AgraQuest, Inc. Soybeans are not the only crop affected.

NOTE: Quadris and Amistar are registered trademarks of Syngenta
Corporation




Business Editors /Food/Beverage Editors

SACRAMENTO, Calif.
CDFA said ballots would be sent out to all of the state's
winegrape growers who paid the assessment for the 2004 harvest.

crops peanuts

These compounds, present in every
container of Ballad, destroy the cell walls of the rust pathogen. Ballad is
AgraQuest 's first entry into the large-acreage row crops. The appropriations money comes in the form of indirect aid
through the states.

processors fertilization

"It marks not only the beginning of implementation of the
historic Specialty Crop Competitiveness Act, it also signals the continuing
recognition of the critical importance of the fresh produce industry to
agriculture and the nation's economy. We look forward to more good news for our industry in the coming
months and years.gov/mkt/mkt/winery.html


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