DIVERGENCE RAISES $3 MILLION IN FINANCING ROUND AND RECEIVES NSF GRANT

ST. LOUIS (Aug. 27, 2002) – Divergence, Inc., the nematode genomics company, announced today that it has raised slightly more than $3 million in funding from a number of investors including Prolog Ventures LLC of St. Louis and individuals. Proceeds from this round of funding will allow Divergence to continue the development of environmentally sound and effective products for the control of parasites, especially parasitic nematodes. Divergence also announced that Ilya Nykin, managing director of Prolog Ventures, has joined the Board of Directors of Divergence.

“We are very pleased to receive the additional equity funding,” said Derek Rapp, chief executive officer of Divergence. “Divergence’s team of scientists has made significant progress in the past year, especially in the discovery and development of compounds showing excellent nematicidal performance. Divergence is determined to continue its momentum and to advance these compounds toward the crop protection and animal and human health markets.”

“Divergence is the sort of company that exemplifies what we are looking for in an investment,” said Ilya Nykin. “It has a great management team, solid science, close ties to leading research institutions, and a strong portfolio of intellectual property rights. We are convinced that the opportunities represented by Divergence’s target markets are very exciting.”In addition, Divergence announced that it has been awarded a $93,000 research grant from the National Science Foundation (NSF). This grant is for a six-month project entitled “Nematode Intestinal Proteins as Anthelmintic Targets.” Last fall, Divergence was awarded a separate grant from the National Institutes of Health for its work identifying target nematode genes for the control of nematodes.

“This award from NSF will support Divergence’s development of one of the interesting groups of target genes identified by our large-scale screen for nematode control targets completed in 2001,” said James P. McCarter, president and chief scientific officer of Divergence. “The funding will accelerate our research efforts, especially in the areas of transgenic plants and vaccines, and 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, 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. For more information on Prolog Ventures, visit www.prologventures.com.