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Mendel Biotechnology Awarded SBIR Phase IIB Grant for Continued
Research on Disease Resistance

HAYWARD, California -- 15 December 2005 -- Mendel Biotechnology,
Inc., a privately held biotechnology company, announced today that
it was granted a Phase IIB Small Business Innovation Research (SBIR)
grant from the National Science Foundation. The SBIR phase IIB grant
provides two years of supplemental funding for a Phase II grant
awarded to Mendel Biotechnology, Inc. for development of crops with
improved disease resistance, based on matching funds from a third
party investor. Protection of crops against fungal pathogens is one
of the most significant unmet needs in agriculture. Over $600
million is spent each year in the United States to protect plants
against fungal pathogens. Nonetheless, annual losses to fungal
pathogens are approximately $900 million in North America for
soybean alone, with total crop losses of approximately $5 billion.
The grant will fund research that aims to enhance a plant's natural
ability to resist pathogen infection, thereby reducing or
eliminating the need for fungicides.

T. Lynne Reuber, Ph.D., Director of Research, will serve as the
Principal Investigator of the grant.

Founded in 1997, Mendel Biotechnology, Inc. was a pioneer in the
application of functional genomics to the study of plant genes.
Mendel's initial mission, now largely complete, was to discover and
characterize the function of plant transcription factor genes as the
basis for creating novel products for agriculture. Mendel is now
commercializing transcription factor technologies in the
agricultural biotechnology and chemistry sectors. Products
incorporating Mendel technologies are being developed for large
acreage row crops, and for the forestry, ornamental and
horticultural markets. Mendel has partnerships with leading
agriculture companies, including Monsanto, the world's leader in
commercializing transgenic crops.

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