London, United Kingdom
29 September 2009.

FuturaGene PLC, (“FuturaGene” or ”the Group”, AIM: FGN), a leader in plant genetic research and development for global forestry, biofuel and agricultural markets, announces its unaudited interim results for the six months ended 30 June 2009.

Results highlights

• Secured additional investment of £1.37m from International Institute of BioScience Research and Development (IIBRD), increasing its shareholding in the Group to 9%
• On course to securing material recurring revenues within the next two to three years
• Extension of agreement for development of disease-resistant eucalyptus with China Academy of Forestry
• Signed agreement for development of enhanced poplar with the China Academy of Forestry for domestic market
• Management team strengthened
• Second field trial of the modified eucalyptus with Suzano in Brazil produced strong initial results
• Field trials initiated in corn and alfalfa
• Loss after tax of £832,000 (30 June 2008: loss £876,000)
• Cash at period end of £829,000 (30 June 2008: £1.4 million)

Dr. Stanley Hirsch, Group Chief Executive of FuturaGene commented: “As the pressure on resources, particularly land and water, and the demand for renewable plant-based energy continue to increase worldwide, we are extremely well positioned to provide sustainable, ecologically sound technologies to enhance plant yields and enable marginal land to be more effectively used.

“We are one of the leaders in developing two major clean technology crops: sustainable, plantation eucalyptus, the key crop for the pulp and paper industry; and poplar which is used for carbon neutral energy combustion and the production of liquid biofuel.

“The first half of the year has seen us sign a number of notable development agreements in strategic crops. The IIBRD investment and the linked conversion of commercialisation options by a major strategic partner, consummate years of development work and place us on the path to achieving material recurring revenues within two to three years.”

FuturaGene is a leader in plant genetic research and development for the global forestry, biofuel, and agricultural markets. The Group develops sustainable, ecologically sound technology to meet the ever increasing demands for fibre, fuel and food crops in the face of declining and deteriorating land and water resources.

FuturaGene aims to be the leading crop technology company for biomass, second generation biofuel and biopower, through two main technology platforms: Cell Wall Modification, which helps crops grow faster, enhancing yield and processability; and Abiotic Stress Tolerance which enables plants to grow in harsh, dry, salty environments or protects yield when plants are stressed by these factors.

The Group has established broad applications of its technology in key crops including eucalyptus, which is the largest sustainable plantation forest species for the pulp and paper industry; and poplar, which is increasingly used as wood chip for biopower, through direct combustion, the co-firing of coal power stations or for the production of liquid biofuel. FuturaGene’s technology is also being used in alfalfa and corn, both of which are aimed at the animal feed and biofuel markets.

The Group’s most advanced technologies are for yield improvement in sustainable industrial forestry. The Group has successfully completed field trials in this area and is now in regulatory phases prior to commercial deployment. FuturaGene is one of only a very limited number of biotech companies to have taken a genetic trait from discovery to the pre-launch stage. The ability to take a novel gene this far is almost unique outside of the major agricultural-industry players.

FuturaGene also has strong partnerships with leading international forestry and agriculture companies, such as Suzano, Forage Genetics (Land ‘O Lakes), China Academy of Forestry (CAF), AA Alliance and Targeted Growth.

Full report: http://www.futuragene.com/Interim%20Results%202009.pdf

Website: http://www.futuragene.com

Published: September 29, 2009