Davis, California
August 20, 2003

To meet the growing demand for disease control products from organic growers and small acreage farmers, AgraQuest Inc. today announced that its commercially popular biopesticide, Serenade®, is now available online in conveniently-sized 12 pound bags. For smaller operations, this size is easier to handle and store than the full-size bag sold through agricultural distributors to larger commercial growers.

"Word-of-mouth about Serenade's success in controlling bacterial and fungal diseases within large farming operations has spread to several smaller, but equally optimal, audiences that are looking for a natural option to chemical pesticides," said Dr. Pam Marrone, CEO of AgraQuest. "We're offering this online ordering capability to make it easy for new and existing customers with small plots to more easily access Serenade in more manageable quantities."

Serenade is an effective biologically based, broad-spectrum fungicide that is compatible with both certified organic and conventional farming. Serenade is produced using agricultural raw materials in a fermentation process. Serenade is nontoxic to beneficial insects and other non-target organisms, and does not cause secondary disease problems, and you can spray up to and on the day of harvest.

Serenade® Biofungicide Protects a Wide Range of Crops

Serenade's active ingredient is a patented Bacillus subtilis strain that produces over 30 natural antifungal/antibacterial natural products called lipopeptides. It is registered for commercial, home and garden use and has been commercially accepted in the U.S. and abroad for protecting a broad spectrum of crops and controlling related fungal and bacterial diseases, including:

• Apples and pears (fire blight, mildews and scab)

• Blueberries (mummy berry)

• Cherries (gray mold)

• Grapes (mildews and bunch rot)

• Green beans (white rot and rusts)

• Hops (mildews)

• Leafy vegetables (white rot and mildews)

• Mint (mildews and rusts)

• Tomatoes and Peppers (bacterial spots, mildews, and other fungal diseases

• Walnuts (bacterial blight)

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. AgraQuest is developing and commercializing a pipeline of natural pest management products, including Sonata® Biofungicide, Arabesque(TM) Biofumigant, and Virtuoso(TM) Bioinsecticide. Internationally recognized venture capital firms, influential growers and agribusinesses back AgraQuest. AgraQuest received the 2003 Presidential Green Chemistry Award for the development of Serenade.