St. Louis (July 1, 2003) - Divergence, Inc. announced that it has been awarded a $100,000 Small Business Innovation Research (SBIR) grant from the National Science Foundation (NSF). This grant is for a six-month project entitled "Transgenic Strategy for Nematode Control" and is the fourth SBIR grant that Divergence has received.

"This award from NSF will support Divergence's development of transgenic plants that are nematode resistant," said James P. McCarter, M.D., Ph.D., President and Chief Scientific Officer of Divergence. "The trait of nematode resistance would be a significant addition to growers in their efforts to produce crops economically and safely. We believe this trait would be especially significant in row crops such as corn, soybeans, and cotton where substantial damage from plant parasitic nematodes occurs."

"The funding will accelerate our research efforts to discover and generate chemical compounds that disrupt the nematode lifecycle while being benign to non-target organisms and environmentally safe," continued McCarter. Further, the attainment of the peer-review validation of our research is a very satisfying accomplishment."

Divergence is a research and development company dedicated to the discovery of effective and ecologically sound strategies for the control of parasites and other pests. The company's initial focus is on parasitic nematodes, one of the world's major pest groups. Nematodes are roundworms that cause billions of dollars in damage annually to numerous crops, including soybeans, corn, and cotton, as well as most fruits and vegetables. Nematodes also cause widespread disease in animals, including infections such as heartworm in dogs and cats and intestinal worms in livestock. Nematode-induced human diseases include elephantiasis and African river blindness.

For more information on Divergence, visit www.divergence.com.