USDA INVESTIGATES BIOTECH COMPANY FOR POSSIBLE PERMIT VIOLATIONS

WASHINGTON, Nov.  13, 2002--The U.S.  Department of Agriculture's
Animal and Plant Health Inspection Service, in close coordination
with the Food and Drug Administration is investigating ProdiGene,
Inc.,  of College Station,  Texas,  for violations of  the  Plant
Protection Act.  

During  a  compliance  inspection  in  October 2002,  APHIS found
potential permit violations by ProdiGene at a  site  in  Nebraska
that  had  been used for small-scale field testing of genetically
engineered corn in 2001.   APHIS  discovered  tasseled  volunteer
corn plants growing in a soybean field that stands on the site of
the 2001 field test.  The presence of these plants is a violation
of permit conditions.  Following this discovery, APHIS instructed
ProdiGene  to  remove  the  volunteer corn plants from the field,
despite the fact that the corn plants did not have  viable  seed.
However,  the  soybeans were harvested before all of the tasseled
corn was  removed.   APHIS  immediately  placed  a  hold  on  the
soybeans  that  were  located  at  a  single  storage facility in
Nebraska so that these materials would not  enter  the  human  or
animal food chains.  

APHIS  also  discovered possible permit violations at a ProdiGene
2001 test site in Iowa in  September  2002.   Volunteer  tasseled
corn  plants  were found growing in a soybean field and in a pile
of volunteer corn plants removed from the field  earlier  in  the
season-both  of  which did not comply with permit conditions.  At
APHIS'  request,  and  under  APHIS  supervision,  ProdiGene  has
harvested  and  destroyed  by  incineration  155  acres  of  corn
surrounding the field test site.  

At the conclusion of the ongoing investigation  into  ProdiGene's
regulatory permit compliance APHIS, in coordination with the FDA,
will   determine   the  appropriate  enforcement  action  against
ProdiGene.  

Under the Federal  Plant  Protection  Act,  APHIS  regulates  the
movement, importation and field release of genetically engineered
plants.   APHIS  requires  significant  safeguards to prevent the
unauthorized release of genetically engineered material.  The Act
provides criminal penalties for knowing  violations  as  well  as
civil penalties.  Any company or individual that violates the Act
faces  civil  penalties  of  up  to  $250,000  per violation,  or
$500,000 per adjudication, and may have their permits revoked.  

USDA has strengthened field-testing requirements for  permits  on
genetically engineered traits that are not intended for commodity
uses,  such as pharmaceuticals,  veterinary biologics and certain
industrial products by adding new safeguards as a  condition  for
all  permits  allowing the confined release of such products into
the environment.  These specific safeguards include comprehensive
confinement  procedures,  performance  standards,   and  required
monitoring/auditing  practices  for ensuring that out-crossing or
commingling with other seeds and commodities are prevented.  

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