Ghent, Belgium
15 May 2012

Devgen nv (Euronext Brussels: DEVG), an agro-biotech company that shapes the field of hybrid rice in India and Southeast Asia and innovates in crop protection technologies, today issued a business update and its three-month financial results ending 31 March 2012.

Business highlights

• Devgen and Syngenta signed a six-year license and research agreement in the field of sprayable RNAi-based crop protection applications, that includes an upfront payment to Devgen of € 22 million and € 4.8 million per year to fund research over the course of the agreement. This new partnership with a leading industry player in crop protection, has the potential to open up a new area of applications of Devgen’s RNAi technology. Devgen’s out-licensing to date had focused on trait applications of this technology. For further information, Devgen refers to its press release of yesterday 14 May 2012.
• Hybrid rice seed production in the 2012 dry season in India went up 20% compared to last year. A cold spell during the production season impacted productivity. This is expected to influence to a limited extent Devgen’s gross margin on the sale of rice seeds.
• The production of other hybrid seeds (sorghum, pearl millet and sunflower) is well in line with expectations, with equal or better productivity than last year.
• Devgen’s premium hybrid rice seed Frontline GoldTM – which is already sold through the private channel in India – successfully completed the last year of notification trials in an important number of Indian rice states, paving the way to distribute this premium product through the subsidized channel as of next year.
• The seed production of Devgen’s research and development pipelines of Next Generation Hybrid Rice (NGHRTM) is on track to deliver seeds for extensive yield trials in the upcoming Kharif (summer) planting season.
• Devgen’s new premium hybrid sorghum for the Rabi (winter) season introduced in 2011 was well received by farmers.
• Devgen obtained regulatory approval in South Africa of Devguard® for application on potatoes, a major field crop with significant nematode infestations.

Financial highlights Q1 2012

• Overall revenues were at € 1.8 million with seed revenues at € 1.3 million – up 51% and research and development service revenues at € 0.5 million – down 83%.
• Research and development services revenues were € 0.5 million, down from € 2.9 million over the same period last year due to completion of the research and licensing agreement with Monsanto Company in October 2011.
• EBITDA for the first three months of 2012 amounted to € -3.3 million compared to € -0.7 million over the same period last year, mainly due to lower research income.
• Cash and cash equivalents at the end of March 2012 amounted to € 40.6 million, including € 5.7 million restricted cash, representing a cash usage of € 3.7 million during the first quarter of 2012.

“The new partnership with Syngenta in the field of RNAi crop protection is yet another major milestone for Devgen and bolsters our cash position and research activities." commented Thierry Bogaert, CEO of Devgen. “Combined with the strong progress in our pipeline of Next Generation Hybrid Rice seeds, it places Devgen in a good position to strategically develop its core activities: innovation in crop protection technologies and building of a leading hybrid rice seed and trait business.”

Outlook 2012

• Devgen believes that it is well positioned to achieve a further increase in seed sales in 2012.
• Less favorable weather conditions have not substantially affected the volumes produced but are expected to impact on the production cost of rice seed.
• New proprietary Devgen hybrid rice varieties are expected to enter the market in India and Southeast Asia.
• Devgen expects regulatory approval for its nematicides in more countries and crops.
• The deal with Syngenta will contribute to the revenues and strengthen the cash position as from Q2. The company is confident that the available cash is sufficient to continue its investments in R&D and market access in India and Southeast Asia.

Website: http://www.devgen.com

Published: May 15, 2012