Bothell, Washington
July 25, 2002

EDEN Bioscience Corporation (Nasdaq:EDEN), which develops, manufactures and markets innovative, natural protein-based products for improving crop production and protecting plants, today announced financial results for its second quarter ended June 30, 2002.

Revenue for the second quarter of 2002 was $1.1 million, which compares to revenue of $575,000 in the second quarter of 2001. Revenue is derived solely from sales of Messenger(R) to distributors. Net loss in the second quarter was $4.7 million, or $0.19 per weighted average common share, compared to a net loss of $7.9 million, or $0.33 per weighted average common share in the second quarter of 2001. In the second quarter of 2001, EDEN incurred an inventory charge totaling approximately $1.4 million, related to changes the company made in manufacturing operations at its new facility in Bothell, WA. Per-share loss amounts for the quarter are based on weighted average common shares of 24.2 million in 2002 and 24.0 million in 2001.

"In my short time with the company, I've been impressed by the solid base of technology, crucial talent and business infrastructure, along with a strong drive by the management team and employees to take EDEN through the next phase of growth," said Rhett Atkins, president and CEO. "With half the year behind us, we are pleased to show progress towards achieving our overall goals of increasing grower usage of Messenger and decreasing our operating expenses." 

Atkins, who has more than 27 years of experience in strategic marketing and sales of agricultural products, joined EDEN Bioscience as president and CEO on June 24, 2002.

The company estimates that distributors sold approximately 324,000 ounces to growers in the second quarter of 2002, compared with approximately 206,000 ounces in the same period in 2001. Based on preliminary information, EDEN estimates that 1,009,000 ounces remained in distributors' inventories on June 30, 2002, compared with an estimated 1,039,000 ounces in distributors' inventories at March 31, 2002.

"We believe that grower usage of Messenger will continue in the second half of 2002 but that these orders will be filled from current distributors' inventory," said Brad Powell, Chief Financial Officer. "As a result of current channel inventory levels, and given the seasonality of our target crops, we expect our sales in the second half of this year to be minor." 

Cash and investments as of June 30, 2002 totaled $37.7 million, compared with $41.5 million at March 31, 2002.

EDEN Bioscience is a plant technology company focused on developing, manufacturing and marketing innovative, natural protein-based products for agriculture. EDEN Bioscience believes its technology and initial product, Messenger, provide growers with a new tool to improve crop production and plant protection. Messenger is based on naturally occurring proteins called "harpins," which activate natural plant defense systems to protect against disease and pests, and simultaneously activate plant growth systems, improving crop yield and quality. Messenger has been tested in over 1,000 field trials in many countries and on more than 40 crops including: citrus, cotton, cucumber, peppers, strawberries, tobacco, tomatoes, grapes and corn.

(c) 2002 EDEN Bioscience Corporation. Always read and follow label instructions before buying or using this product.
Messenger(R), EDEN(R), and EDEN Bioscience(R) are registered trademarks of EDEN Bioscience Corporation.
Messenger is not currently registered for sale or use in Colorado. In California, Messenger is labeled for disease management for use on strawberries, grapes, and fruiting vegetables only.