St. Louis (January 16, 2004) - Divergence, Inc. announced today that in a financing round just completed, it raised $4,064,000 in equity funding from Prolog Ventures LLC of St. Louis and individuals. Proceeds from this round of funding will allow Divergence to continue the development of safe and effective products for the control of parasites, especially parasitic nematodes.

"We are very pleased to receive the additional equity funding," said Derek Rapp, Divergence's chief executive officer. "Divergence has funds to accelerate its research efforts across its portfolio, from novel nematicidal and anthelmintic chemical families to transgenes imparting parasite resistance in plants. This successful financing is testament to our strong investor base and to the many accomplishments of our scientists."

"Divergence will continue to develop products aimed at increasing agricultural productivity without harming the environment or the users of the products," said James P. McCarter, M.D., Ph.D., President and Chief Scientific Officer of Divergence. "Growers need safe-to-use products that prevent or minimize the effects of parasitic infections in crops and other plants. Parasites such as soybean cyst, root knot, and lesion nematodes, pose major problems in this country and throughout the world, causing an estimated $8-9 billion of crop yield loss each year in the U.S. alone. Divergence has product candidates in development that could offer solutions."

"Likewise, in the areas of human and animal health, parasites cause significant human morbidity as well as illness and death in pets and loss of productivity in livestock," said McCarter. "The development of new anti-parasitic products is important for livestock producers and pet owners and could play an important role in global public health initiatives."

"Prolog Ventures remains very excited with Divergence's prospects," said Ilya Nykin, Managing Director of Prolog Ventures LLC and a member of Divergence's Board of Directors. "The combination of cutting-edge science, a growing collection of intellectual property rights, an experienced management team and Board of Directors, and products in development targeting potentially large, profitable markets makes Divergence unusually attractive."

To date, Divergence has raised approximately $9 million in equity. Divergence has also been awarded in excess of $1 million in research grants from the National Institutes of Health, the National Science Foundation, and the National Corn Growers Association. With these funds, Divergence has made scientific progress that has led to applications for more than 25 patents in the United States and elsewhere, as well as several product candidates now in development.

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. Nematodes infecting humans include species causing elephantiasis and river blindness as well as numerous intestinal parasites.

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