Devgen business update: "nematicide path to market on track, acquisition of a seed business in India executed, RNAi-technology increasingly validated and path to focus the company on Agro initiated."

Webcast and conference call on Friday 16 November 2007 at 10.30 am. A link is available on Devgen's home page and participation in the conference call is possible via the number +32 (0)2 290 14 07. Zwijnaarde, November 16, 2007. Devgen NV (Euronext Brussels: DEVG), a leading European biotechnology company, today provided a business update highlighting progress in its business activities and some key financials. At the occasion of the recent publication in Nature Biotechnology, Devgen gave more information on Devgen's RNAi-program. Additionally, further information was given on its plans with the recently hybrid rice, sunflower, sorghum and pearl millet seed business in India. Since the last business update, Devgen delivered several significant milestones in its nematicide, seeds and biotech crop business. The company furthermore set the first steps towards separating its Agro and Pharma business activities to ultimately focus the company on its Agro activities and to provide an independent growth opportunity to the pharma unit. On November 5, the international science journal, Nature Biotechnology published work from Monsanto and Devgen scientists demonstrating the potential of RNAi-technology to protect corn from a major pest corn root worm. This is the first demonstration in the scientific literature of the use of RNAi-technology to protect an important crop from a major pest (the corn root worm is estimated to cost the corn industry in the United States one billion dollar per year due to pesticide costs and crop damage). This is an important milestone for Devgen and heralds a new paradigm for crop protection. In addition to the promising results presented in the article generated with corn root worm on corn, Devgen has generated positive results with its RNAi-technology on colorado potato beetle and other pests. More information will be provided in the webcast. On October 31, Devgen completed the acquisition of Monsanto's hybrid rice, sunflower, sorghum and pearl millet business in India, thereby delivering an important step in its strategy to become a fully integrated seed and biotechnology business in rice and other important Asian crops. Devgen paid US$ 26 million in cash. In a separate transaction, Monsanto Company has subscribed to Devgen shares for the amount of 18 million ¤ (US$ 25 million). The assets include about 70 highly experienced staff, breeding, seed, and production organizations and key brands such as Frontline, Mahalaxmi and Paras. The acquired business has a strong, high quality product portfolio with substantial growth potential. Its profitability is at par with industry averages: * Devgen has 3 hybrid rice products in the market with substantial growth potential. In hybrid rice, Devgen is a top 6 player with an estimated 4% market share in a market which is today 1.2 - 1.5 million ha and is estimated by the Indian government to grow to 10 million ha by 2012. Devgen's flagship product RH257, that was launched a few years ago, has unique quality characteristics and agronomic properties, resulting in high demand and a good growth potential. * In sorghum, a 7 million ha market, Devgen is market leader with an estimated 24% market share, with a substantial potential to grow through new product introductions and an aggressive marketing strategy. * In pearl millet, a 7 million ha market, Devgen has ~6% market share with a good potential for growth. * In sunflower, Devgen has products with a superior oil content and has an estimated 12% market share and good potential for growth. In 2008, Devgen will focus on strengthening its Devgen India organization and will consolidate and strengthen its market presence. In addition Devgen will plan and prepare for aggressive sales growth as of 2009. The nematicide business is progressing according to plan. The business and product development team was strengthened in EMEA (Europe, Middle East, and Africa) and the US. Positive field trials and an acceleration of the activities were reported in the last quarter. More news will be announced in Q1, 2008 as more field trial data become available. The first steps towards separating the agro and pharma business have been taken. A legal entity has been established to house Devgen's pharma activities. Hilde Windels, CFO of Devgen, has been appointed CEO designate of the pharma newco and is leading the effort to structure and spin-out the pharma business with additional external financing. This financing is required to initiate clinical trials with Devgen's strong anti-inflammatory clinical drug candidates and to enable this unit to grow to its full potential. As soon as a new CFO is hired, Hilde Windels will concentrate full time on the pharma activities (we will report on this in the near future). Commenting on these announcements, Dr. Thierry Bogaert, CEO of Devgen, said: "2007 has been one of the most transformational years for Devgen. Critical technical milestones and business deals were executed that brought the business from a pure biotech supplier of technology, to a fully integrated seed and technology business with product sales and (as of 2009) a supplier of nematicides in the US. At the same time Devgen will complete the focusing on our Agro activities in the first two quarters of 2008." Key financials 30.09.07 (non audited) +-------------------------------------------------+ | ¤ 000 | 30.09.07 | 30.09.06 | |---------------------------+----------+----------| | Revenue | 6.021 | 6.502 | |---------------------------+----------+----------| | EBITDA | -9.134 | -6.830 | |---------------------------+----------+----------| | Loss from operations | -9.747 | -7.569 | |---------------------------+----------+----------| | Net loss | -8.663 | -7.255 | |---------------------------+----------+----------| | Cash and cash equivalents | 45.771 | 25.961 | +-------------------------------------------------+ About Devgen Devgen is a top 10 public agro biotech company with agricultural business units focused on developing and commercializing: * a novel generation of biotech products to protect a wide spectrum of crops from damage incurred from pests; * biotech traits and germplasm to meet the growing needs for high yielding, high quality hybrid rice and selected small grains in India and S.E. Asia; * safer and more environmentally friendly agro-chemical products to protect crops from damage inflicted by plant parasitic nematodes. Devgen's biopharmaceutical division develops a new class of preclinical drug candidates, based on novel therapeutic concepts, for treatment of a range of inflammatory and metabolic disease (diabetes, obesity) and arrhythmia. Devgen has entered into partnerships with industry leaders in biotechnology and agro chemistry. Incorporated in 1997, Devgen has offices in Ghent (Belgium), Singapore and Hyderabad (India), with a total work force of about 160 people. Devgen is listed on Eurolist by Euronext Brussels (ticker: DEVG) since June 2005. For more information on Devgen, please visit the company's web site: For more information please contact: Thierry.Bogaert, CEO Hilde Windels, CFO Tel. +32 9 324.24.24 Tel. +32 9 324.24.24 This press release may contain forward-looking statements containing the words "anticipates", "expects" , "intends", "plans", "estimates", "may" and "continues" as well as similar expressions. Such forward looking statements may involve known and unknown risks, uncertainties and other factors which might cause the actual results, performance or achievements of Devgen to be materially different from any future results or achievements expressed or implied by such forward-looking statements. These forward looking statements speak only as of the date of publication of this document. Devgen disclaims any obligation to update such forward looking statements in this document to reflect any change in its expectations, conditions or circumstances on which such statement is based, unless required by law or regulation.