Regulated information

Financial highlights

 +--------------------------------------------------------------- ----+ | EUR  million         |        H1 2009        |      H1 2008       | |----------------------+-----------------------+--------------------| | Revenues             |          8.6          |        5.8         | |----------------------+-----------------------+--------------------| | R&D expenditure      |          4.6          |        7.2         | |----------------------+-----------------------+--------------------| | Burn Rate            |          7.7          |        7.1         | |----------------------+-----------------------+--------------------| | Net loss from cont'd |                  -5.0 |               -7.4 | | operations           |                       |                    | |----------------------+-----------------------+--------------------| |                      |     June 30, 2009     | December 31, 2008  | |----------------------+-----------------------+--------------------| | Cash Position        |         36.2          |         24.2       | +-------------------------------------------------------------------+ 

Business highlights

Devgen's novel nematicide, an agro-chemical product that protects crops from damage by parasitic nematodes, is ready to enter the market:

- Devgen obtained regulatory approval in the US for usage of its new nematicide on peanuts. Devgen will promote its nematicide under the brand name Enclosure(R). Sales are planned to start early 2010 and demo trials and information campaigns are currently ongoing;

- Devgen obtained regulatory approval in Turkey for use of its nematicide on tomato and cucumber grown under protective cover. The product was launched in Turkey at the beginning of August under the brand name Devguard(R).

In India strong growth was achieved in the hybrid seed business despite adverse weather conditions:

- Devgen achieved a 40% growth in turnover during the first half of the year.

- Sales of Devgen's hybrid rice, pearl millet, sunflower and sorghum for the entire Kharif season (ending September) are now estimated to exceed last year sales during the same period with respectively 100%, 70%, 22% and 16%.

- Taking into account that part of the sunflower sales are planned for the Rabi season (running from October until February), turnover for the year is expected to grow by 50% for the full year 2009.

- Growth of turnover in India is lower than planned, but Devgen performs amongst the best in the Indian seed industry in a year when adverse weather conditions had a negative influence on seed production and late and weak Monsoon rains substantially affected the country's farming industry as a whole (e.g. in anticipation of lower production, the Indian government has banned rice exports for the remainder of the year).

- By the end of 2009, having completed its first full year of operations, Devgen aims to be the top 4 player in hybrid rice, to regain the number one position in premium hybrid sorghum and targets to be the number 3 hybrid sunflower seed provider in India.

In Indonesia and the Philippines Devgen is preparing to launch its premium hybrid rice varieties:

- In the Philippines, Devgen has entered into a distribution agreement with Leads Agri, one of the leading agrochemical distributors with nationwide presence and familiar with farmer needs. A Devgen production and commercial support team is put in place. The Philippine breeding team has been strengthened and focuses on evaluating and breeding new rice hybrids that meet the needs of the Philippine farmer. Production is ongoing in preparation of the November sales season.

- In Indonesia Devgen has strengthened its relationship with Pt. Sang Hyang Seri (Persero) through the creation of a Strategic Business Unit for hybrid rice seed production. Registration of Devgen's product is pending and first sales targeted for Q4 2009 or Q1 2010.

Devgen realized significant progress and obtained further industry validation of its R&D programs and capabilities:

- Devgen and Monsanto Company updated their Research and Technology Agreement, resulting in a payment of EUR 20 million in cash by Monsanto Company to Devgen.

- Devgen renewed the Agrochemical Compound Discovery Agreement with Sumitomo Chemical Company continuing a successful joined research collaboration.

- Devgen's pipeline of biotech traits is expanding and progressing on track.