United Kingdom and China
January 25, 2010

FuturaGene PLC (“FuturaGene” or ”the Group”, AIM: FGN), a leader in plant genetic research and development for global forestry, biofuel and agricultural markets, has entered into a licensing agreement with the leading Chinese seed producer, BioCentury Transgene (China) Co. Ltd (“BioCentury”) to provide cell wall modification and salt tolerance genes for development in cotton plants in China.

Biocentury will develop cotton plants with improved and increased yield, fibre quality and salt tolerance characteristics. FuturaGene and BioCentury will share revenues generated by sales of the newly developed cotton seeds.

This agreement comes shortly after the granting of a patent by the Chinese patent office covering the Group’s drought tolerance gene for use in both food and non-food crops. FutureGene also recently licensed its drought tolerance technology to Bayer CropScience for utilisation in cotton worldwide.
 
The global cotton seed and trait market is valued at over US $850m per annum with China constituting approximately 20%.

This agreement further implements the Group’s strategic aim to be the leading crop technology company for fibre, fuel and food crops. While the Group’s main focus is on the development of its Cell Wall Modification and Abiotic Stress Tolerance technologies in core forestry and biopower crops, FuturaGene maximises further revenue streams through out-licensing its technologies in non-core crops, such as cotton.

Dr Stanley Hirsch, FuturaGene CEO said,

“BioCentury is one of China’s largest players in the cotton seed market. Combining our yield and salt tolerance traits with BioCentury’s capabilities and position in the Chinese market will deliver huge benefits for both companies as well as to cotton farmers in China.

“This important agreement fits well with our strategy - to focus on poplar and eucalyptus for the pulp and biomass markets whilst licensing our leading gene technologies to major operators for other crops. This strategy ensures we remain focused but also benefit from potential royalty revenues, without further capital outlay, when our technologies are used in additional crops.”

Dr. Yasheng Yang, Biocentury CEO said,

“We are delighted to partner with FuturaGene, a world leader in plant genetic improvement, to develop the next generation of transgenic cotton in China. Incorporating FuturaGene’s technologies in cotton plants perfectly fits with our aim to bring the most innovative and effective traits to the Chinese cotton market and help farmers cope with modern agriculture challenges.”

About Futuragene PLC -
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 fiber, 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's most advanced technologies are for yield improvement in sustainable industrial forestry and it has strong partnerships with leading international forestry and agriculture companies, such as Suzano, Bayer CropScience, Forage Genetics (Land 'O Lakes), China Academy of Forestry (CAF), AA Alliance and Targeted Growth. The Group has established broad applications of its technology in key crops including eucalyptus, poplar, alfalfa, cotton and corn.

About BioCentury
Based in Shenzhen, China, BioCentury Transgene (China) Co. Ltd (BTC) is a fully integrated agbiotech and seed company combining innovation and advanced technology to help farmers in China and other countries to produce more and better quality agricultural products addressing the increasing pressure of population growth, food quality, reduced land and water resources, global warming and environmental problems. Formed in 1998 around the Chinese invention of Fusion Bt technology, BTC has developed from a Bt technology provider to a fully integrated seed market leader of cotton, wheat and oil seed rape with its own agbiotech R&D center, cotton breeding stations, cotton seed production and processing centres and marketing and sales centres throughout the three major cotton segments in China. Since 2007, BTC has accelerated its international business development and licensed its Fusion Bt technology in India, the Philippines, and Vietnam. In addition, BTC has formed a joint venture in Pakistan, and is in the process of negotiating with several parties to a joint venture in India. BTC’s reputation in the seed industry has been built around its capabilities in governmental approval processes for transgenic crops in China, its technology licensing and tech fee collection mechanisms, as well as its pioneering actions to enforce intellectual property infringements of its technologies in China.

Website: http://www.originagritech.com

Published: January 25, 2010