Divergence Receives International Honor

St. Louis (May 18, 2005) -

ST. LOUIS - Divergence, Inc. today was named 2005 Outstanding Incubator Client in the technology category at the National Business Incubation Association's 19th International Conference on Business Incubation in Baltimore, Maryland.

A client and resident of the Nidus Center for Scientific Enterprise in St. Louis since 2001, Divergence discovers and develops proprietary products to safely and effectively control parasitic nematode diseases in plants, animals, and people. Nematodes are roundworms that cause billions of dollars in damage annually to crops such as soybeans, strawberries and bananas. Parasitic nematodes also cause widespread illness in animals and humans, including intestinal worms in livestock, heartworm in dogs and cats, and elephantiasis and African river blindness in humans.

Dr. James P. McCarter, President and Chief Scientific Officer of Divergence, founded the company in 1999 at Washington University, where he was researching parasitic nematode genomics. Neither McCarter nor Derek Rapp, who joined the company in 2001 as Chief Executive Officer of Divergence, had small-business experience, so the company turned to the Nidus Center for help.

"We were confident that having advisors located with us, as well as peer companies, would be extremely beneficial for Divergence," Rapp said. "The guidance and support that we have received from the management team of the Nidus Center have been very important in our success to date."

"The facilities at Nidus are first rate," said Rapp. "Plus, by locating in Nidus, the team at Divergence was able to devote its energy to activities that create shareholder value, rather than the many infrastructural activities that would otherwise have been essential."

"We are very pleased to have wonderful clients and residents such as Divergence," said Robert Calcaterra, CEO/President of Nidus Center. "We at Nidus believe that we can provide significant value to emerging life science companies, as we have to Divergence."

Business incubation programs like the Nidus Center catalyze the process of starting and growing companies by providing entrepreneurs with the expertise, networks and tools they need to make their ventures successful. In 2001 alone, North American incubators assisted more than 35,000 start-up companies that provided full-time employment for nearly 82,000 workers and generated earnings of more than $7 billion. Approximately 4,000 business incubators operate worldwide.

While at the Nidus Center, Divergence has had several accomplishments. Perhaps most notably, the company has raised approximately $10 million in equity and grant funding. The company has also filed for more than 30 patents. The company has put in place numerous important relationships with research collaborators and a major licensee, Monsanto Company. In that time, the number of employees at Divergence has increased from eight to 24.

The National Business Incubation Association is the world's leading organization advancing business incubation and entrepreneurship. Each year, the NBIA Incubation Awards honor the business incubation programs, graduates and client companies that exemplify the best of the industry.

Nidus Center for Scientific Enterprise is a not-for-profit plant and life sciences incubator in St. Louis, Missouri. Opening its doors in 2000, Nidus Center serves entrepreneurial clients who are refining and preparing new technologies for market. Nidus Center is sponsored by Monsanto and is part of the investment made to help promote the St. Louis region as the world center in biotechnology and the plant sciences.

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