St. Louis (May 4, 2004) - Divergence, Inc. announced that it has been awarded a total of $160,000 in two Phase I Small Business Innovation Research ("SBIR") grants from the United States Department of Agriculture (USDA). The grants are focused on the testing and development of different classes of chemistry as potential nematicides for plant protection and anti-parasitic compounds for animal and human health. The Principal Investigators on the grants are Senior Directors Michelle Hresko, Ph.D. and Barry Shortt, Ph.D.

"These awards from the USDA provide both funding and validation for two exciting chemistry projects that Divergence has been advancing," said James McCarter, M.D., Ph.D., President and Chief Scientific Officer. "Both projects are the result of Divergence's genomics-based research platform and take advantage of Divergence's target gene collection. We believe that products from these projects could one day provide safe and effective ways to prevent or control parasitic disease in a wide range of markets."

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, cotton, strawberries, and bananas. 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.