Mendel Biotechnology Completes Financing Round

15 October 2007

Mendel Biotechnology, Inc. a functional genomics company focusing on the development of new seed products for the emerging bioenergy market, has completed a financing round in which ZBI Ventures (the private equity investment arm of Ziff Brothers Investments), Capricorn Investment Group, and CFM became new investors in Mendel.

In connection with these investments, a ZBI representative will be joining the board. In addition, Monsanto has made an additional investment in Mendel. Mendel will be using the proceeds to support the growth of its new BioEnergy seeds and feedstock business, as well as the further development of its core technology platforms. The Company also may use a portion of the proceeds to repurchase shares from existing share and option-holders, thereby restructuring the shareholder base of the company.

Mendel has been an important and beneficial collaborator for Monsanto, providing important technologies that support our pipeline. We look forward to our continued involvement with Mendel and we’re excited to see their research expand into the cellulosic biofuels industry.

—Robb Fraley, Monsanto’s Chief Technology Officer

In June, Mendel and BP entered a collaboration to develop biofeedstocks for the production of cellulosic ethanol based on accelerating a breeding program for perennial grasses that can be used as feedstock. Mendel will establish breeding stations in the Midwest and the Southeast United States, and accelerate breeding collaborations with groups in Germany and China. (Earlier post.)

Mendel’s goals are to increase the yield of biomass crops without increasing the input costs; develop varieties that are better suited for processing to fermentable sugars; and to produce plants with enhanced biotic and abiotic stress tolerance.

In March 2007, Mendel acquired the entire Miscanthus breeding program from Tinplant Biotechnik und Pflanzenvermehrung GmbH, a German breeding and plant science company. Miscanthus is one of the leading candidates for dedicated energy crops.