DIVERGENCE RECEIVES PHASE I SBIR GRANT FROM NSF

St. Louis (June 16, 2004) - Divergence, Inc. announced that it has been awarded a Phase I Small Business Innovation Research ("SBIR") grant from the National Science Foundation (NSF) in the amount of $100,000. The grant, entitled "Identification of Nematicidal Peptides by Phage Display." is focused on the discovery of genes for transgenic plants that are resistant to infection by parasitic nematodes. The Principal Investigator on this grant is Michelle Hresko, Ph.D., Divergence's Senior Director of Discovery Research.

"The team at Divergence is very pleased to have received this grant from the National Science Foundation," said James McCarter, M.D., Ph.D., President and Chief Scientific Officer. "This grant will work synergistically with our existing peptides project that was previously awarded a Phase II SBIR grant from the NSF. With this effort underway, we will increase the likelihood of finding effective genes for nematode control."

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.