Bothell, Washington
July 26,  2001

EDEN Bioscience Corporation (Nasdaq:EDEN), which develops, manufactures and markets innovative, natural products for protecting plants and improving crop production, today announced
financial results for its second quarter ended June 30, 2001.

Separately today, EDEN announced an exclusive business relationship with the Scotts Company. The company also announced that it has received registration from the Ministry of Agriculture in Ecuador for Messenger(R).

Revenue for the second quarter of 2001 was $875,000, all of which was derived solely from sales of the company's first product, Messenger(R). As the company stated previously, this lower-than-expected revenue is primarily due to the severity of the growers' economic conditions in EDEN's initially targeted markets, principally cotton and citrus.

Net loss in the quarter was $7.9 million or $0.33 per weighted average common share, compared to a net loss of $3.8 million or $0.23 per pro forma weighted average common share in the second quarter of 2000. Per share loss amounts are based on 24.0 million weighted average shares in 2001 and 16.7 million pro forma weighted average shares in 2000. The pro forma weighted average shares reflect the retroactive conversion of all EDEN(R) convertible preferred stock into common stock, which took place on September 26, 2000. As previously announced, EDEN incurred an inventory charge during the quarter, totaling approximately $1.4 million.

"Our focus is to get growers to use our product in diverse markets and across a variety of crops and geographies," said Jerry Butler, president and CEO. "Even with the slower-than-anticipated adoption rate, we have made real progress with growers and distributors, and we continue to be very pleased with product performance across a range of crops."

RECENT HIGHLIGHTS

• On July 26, 2001, EDEN Bioscience and The Scotts Company, the world's leading supplier and marketer of consumer products for do-it-yourself lawn and garden care, formed an exclusive business relationship whereby Scotts has the exclusive global rights to research the use of EDEN's harpin technology in the worldwide consumer lawn and garden market; lawn, tree and shrub service markets; and the branded plants market. EDEN and Scotts will work together to develop new products, to be sold exclusively by Scotts. EDEN also expects to name Scotts as a distributor of Messenger to the professional horticulture and turf markets.
• On July 26, 2001, EDEN Bioscience received registration from the Ministry of Agriculture in Ecuador for Messenger on all crops in that country. EDEN has been conducting tests on a
  variety of crops in tropical climates. Ecuador is one of the largest banana producers in the world, according to the UN Food and Agricultural Organization, and bananas represent that
  country's second largest export.
• On June 29, 2001, EDEN Bioscience unveiled a program to bring leading-edge agricultural technology to less-developed countries that will help poor farmers produce higher yields of
  healthier food and feed crops. Under the program, the company's product, Messenger, will first be made available to small-scale farmers in Ethiopia and Kenya. Within a year, the
  project will be expanded to other African and Eastern European countries that apply to EDEN for inclusion in the project.
• On June 25, 2001, EDEN Bioscience Corporation was presented The Presidential Green Chemistry Challenge Award, for technical innovation in the development of harpin technology. The EPA Office of Pollution Prevention and Toxics gives the awards annually to recognize organizations and individuals that are successfully researching, developing, and
  implementing outstanding green chemical technologies. These technologies are defined as chemical products and manufacturing processes that reduce or eliminate the use or generation of hazardous substances.

BUSINESS OUTLOOK

"Because of the poor economic conditions within our key markets during this growing season, we may be effectively a year behind expectations," Butler stated. "In this first year of product introduction, and under current conditions, our visibility is severely limited, and sales are extremely difficult to predict. As we enter the slower growing season, we believe sales are likely to be more or less flat with the quarter just ended for the remainder of the year."

Cash and investments as of June 30, 2001 totaled $63.4 million, compared with $75.2 million at March 31, 2001. The company believes this balance is sufficient to fund operations for at least the next twelve months.

ABOUT EDEN BIOSCIENCE

EDEN Bioscience is a plant technology company focused on developing, manufacturing and marketing innovative natural products for agriculture. EDEN believes its technology and initial product, Messenger, allow it to offer superior alternatives to existing plant protection and crop yield enhancement products in terms of both performance and safety and, importantly, to avoid the substantial public resistance to many chemical pesticides and genetically modified plants. Messenger, which received EPA approval for full commercial use in April 2000, 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. It has been extensively tested in hundreds of field trials in four countries and on more than 40 crops including: citrus, cotton, strawberries, tomatoes, peppers, melons, wheat, rice, peanuts, tobacco, grapes and others. EDEN Bioscience's headquarters are at 11816 North Creek Parkway N., Bothell, WA 98011, 425/806-7300; www.edenbio.com. 

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