St. Louis (October 17th, 2006) - Divergence, Inc. announced that it has been awarded $296,000 in a Phase II Small Business Innovation Research ("SBIR") grant from the United States Department of Agriculture ("USDA"). The grant is focused on the testing and development of nematicidal compounds, work led by Principal Investigator Barry Shortt, Ph.D., Senior Director, Plant Protection Research.

"Divergence continues to make important strides in discovering and developing novel nematicides with the potential for outstanding efficacy and environmental safety profiles," said James McCarter, M.D., Ph.D., President and Chief Scientific Officer. "The support that we are receiving from the USDA for our research efforts provides an important boost, and we are confident about our prospects for advancing highly effective compounds to the market."

This grant brings total funding from SBIR grants received by Divergence close to $3 million, including more than $500 thousand in 2006 alone.

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 primary 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.