######Handouts1.ppt 11/19/98 7:55 PM (8)

„„SellingSelling inin US,US, Chile,Chile, Mexico,Mexico, CostaCosta Rica,Rica, Efficacy of SERENADE® on Japan,Japan, Philippines,Philippines, Grape (Chardonnay) Powdery Guatemala,Guatemala, Honduras,Honduras, Mildew, Bunch Rot, Sour Rot NewNew Zealand,Zealand, Israel,Israel, (Yolo County, CA - 1999) Switzerland;Switzerland; PendingPending EU,EU, ArgentinaArgentina „„NoNo performanceperformance failuresfailures afterafter >2>2 millionmillion poundspounds soldsold „„NoNo significantsignificant growergrower complaintscomplaints „„+80%+80% conversionconversion fromfrom demodemo toto salesale Untreated Serenade

UniqueUnique CombinationCombination ofof LipopeptidesLipopeptides

RT: 0.01 - 30.01 ChemistryChemistry ProfileProfile ofof SerenadeSerenade 24.58 NL: 100 1.07E8 7.47 Iturins Base Peak 90 F: + c Full 8.88 Surfactins ms 80 70 60 50 23.80 10.91 23.52 Relative Abundance Relative 40 Agrastatins/ 25.71 30 11.22 9.30 Plipastatins 20 19.02 20.10 17.79 20.19 6.27 11.92 10 5.50 16.75 26.90 15.41 3.73 4.93 12.62 28.93 0 1.66 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 Time (min)

NH2 OH COOH CH2 COOH CH CH CH CH2 2 3 2 CH HOCH CH CH CH2 2 Tyr 2 2 3 CONH2 CONH2

CO-NHCHCO-NHCHCO-NHCHCO-NHCHCO-NHCHCO-NHCHCO CH2 CH2 CH2 Orn Ala CH CH2 Thr Glu CO-NHCHCO-NHCHCO-NHCHCO 2 N Tyr Asn CHOH Pro CH2 Asn HN CH (CH2)12 R(CH2)8~12 CH CH CH2 Gln Val Tyr Gln CO CH3 NH-OCCHNH-OCCHNH-OCHC NCO O OCCHNH OCCHNH-OCCHNH CH2 CH2 CH2 CONH2 CHCH3 CH2 CH OH Agrastatin 1 2 CONH2 CH Iturin A R= CH Pro 3 CH2 3 Ser Asn Agrastatin 2, CONH2 CH(CH3)2 Ala replaced by Val CHCH2CH3 OH CH3 ######Handouts1.ppt 11/19/98 7:55 PM (9)

Botrytis Gray Mold 0% Botrytis Gray Mold 90% inhibition inhibition: Iturins 10ppm Botrytis Gray Mold 90% inhibition Iturins 10ppm + Agrastatins 2.5ppm or Agrastatins 50ppm Iturins 10ppm + Agrastatins 2.5ppm

The lipopeptide compounds in Serenade synergize each other but are not active alone

Serenade Makes Chemical Programs Better

„„ SerenadeSerenade synergizessynergizes manymany classesclasses ofof syntheticsynthetic chemistrychemistry :: EBDCs EBDCs (e.g.,(e.g., dithane, dithane, maneb), maneb), Topsin, Topsin, andand strobilurin strobilurin chemistrychemistry

„„ CombiningCombining SerenadeSerenade inin tanktank mixmix oror rotationrotation withwith lowerlower ratesrates ofof chemicalschemicals providesprovides betterbetter resultsresults thanthan chemicalchemical onlyonly programsprograms

ProvenProven examples:examples: „„ FloridaFlorida tomatoes:tomatoes: 2lbs2lbs ++ 22 lbslbs coppercopper „„ Bananas:Bananas: SerenadeSerenade ++ 1/21/2 raterate mancozebmancozeb „„ Beans:Beans: 2lbs2lbs SerenadeSerenade ++ 1-21-2 lbslbs TopsinTopsin „„ Apples:Apples: reducereduce Captan Captan inin scabscab programprogram „„ LowerLower raterate ofof susulfurlfur onon allall cropscrops ######Handouts1.ppt 11/19/98 7:55 PM (10)

Serenade as a resistance management tool

A major banana company has observed that farms that applied Serenade 20 times a year in a program for sigatoka control had higher strobilurin susceptibility than farms that applied Serenade only 6-8 times in a year.

Product Line Extensions

„„RhapsodyRhapsody®® forfor diseasedisease controlcontrol ofof ornamentals:ornamentals: commercialcommercial growersgrowers ofof flowers,flowers, foliagefoliage andand beddingbedding plants,plants, treestrees „„GreatGreat forfor resistanceresistance managementmanagement

„„‘Serenade‘Serenade Garden’Garden’ 2424 ozoz ReadyReady toto UseUse inin ~800~800 storesstores 20042004 „„NewNew categorycategory -- first first certifiedcertified organicorganic pesticidepesticide inin Wal-MartWal-Mart „„SmallSmall revenuerevenue forfor W-MW-M butbut growthgrowth raterate higherhigher thanthan conventionalconventional productsproducts ######Handouts1.ppt 11/19/98 7:55 PM (11)

Arabesque™ BioFumigant

MuscodorMuscodor albus,albus, aa newnew fungalfungal speciesspecies

FungusFungus isolatedisolated fromfrom cinnamoncinnamon treetree bark,bark, HondurasHonduras

StopsStops andand killskills aa rangerange ofof molds,molds, bacterbacteria,ia, insects,insects, nematodesnematodes

ProducesProduces aa mixturemixture ofof >20>20 volatilevolatile (gaseous)(gaseous) compoundscompounds

GCGC tracetrace ofof volatilevolatile naturalnatural productsproducts producedproduced byby MuscodorMuscodor albusalbus

Re sponse_

38000 36000 2-methyl-1- Phenethyl Ph ene thyl alcohol 34000 2-methyl-1-butanol 32000 30000 28000 26000 Isobutyric acid 24000 Isobutyric acid 22000 2-methylbutyl 20000 2- met hylbu ytl is obut yrate 18000 isobutyrate 16000 Et hyl propio nate 14000 Ethyl 2 -met2-methybutyl h yl but y l a cetat e 12000 Isobu ty l al co hol 10000 propionate Isobutyl acetate 8000 alcohol 6000 4000 0.00 5. 00 10.0 0 15.00 20.0 0 25.00 30.0 0 35.0 0 40.00 Ti m e ######Handouts1.ppt 11/19/98 7:55 PM (12)

Arabesque™ BioFumigant Controls Fruit Rots (and many other molds and bacteria, including human pathogens E.coli, Salmonella and others) UntreatedUntreated UntreatedUntreated

MuscodorMuscodor albusalbus TreatedTreated TreatedTreated

ControlControl ofof TomatoTomato andand PepperPepper SoilSoil DiseasesDiseases

„ L: Soil mixed with M. albus and Rhizoctonia

„ R: Soil mixed with Rhizoctonia only

„ 40 days after transplanting ######Handouts1.ppt 11/19/98 7:55 PM (13)

AgraQuest’sAgraQuest’s PipelinePipeline

®® RhapsodyRhapsody Ballad ™ ®® Ballad ™ BiotuneBiotune Arabesque™ ® Arabesque™ ApprovalApproval SerenadeSerenade® SerenadeSerenade®® SonataSonata®® Virtuoso™Virtuoso™ TimelineTimeline GardenGarden 20002000 20032003 20042004 20052005

„„ SerenadeSerenade Biofungicide:Biofungicide: Fruit, Fruit, nut,nut, vegveg diseasesdiseases „„SerenadeSerenade Garden:Garden: Garden Garden plantplant diseasesdiseases „„RhapsodyRhapsody Biofungicide:Biofungicide: Ornamental Ornamental diseasesdiseases „„BiotuneBiotune Adjuvant:Adjuvant: Enhances Enhances biopesticidesbiopesticides „„SonataSonata Biofungicide:Biofungicide: Downy Downy && powderypowdery mildewsmildews „„BalladBallad Biofungicide:Biofungicide: Rusts Rusts inin soybeans,soybeans, cereals,cereals, legumeslegumes „„ArabesqueArabesque Biofumigant:Biofumigant: Molds, Molds, insects,insects, nematodesnematodes „„VirtuosoVirtuoso Bioinsecticide:Bioinsecticide: Caterpillars, Caterpillars, flies,flies, mitesmites

CriteriaCriteria forfor Successful Product AdoptionAdoption

„„ NumberNumber 11 -- Does Does itit work?work? (as(as wellwell oror betterbetter thanthan existingexisting chemicalchemical pesticides)pesticides) „„ NumberNumber 22 -- What What doesdoes itit cost?cost? „„ NumberNumber 33 -- What What otherother benefitsbenefits areare there?there? IsIs itit safer?safer?

2000 2000 Typical 1600 Farmer 1200 Adoption Curve 800

Number of Acres 400 200 20 0 Season 1 Season 2 Season 3 ######Handouts1.ppt 11/19/98 7:55 PM (14)

TheThe ValueValue PropositionProposition

„„ GrowersGrowers cancan increaseincrease profitprofitss whilewhile increasingincreasing foodfood andand workerworker safety,safety, reducingreducing environmentalenvironmental impact,impact, withwith protectionprotection rirightght upup untiluntil harvestharvest

6,000 6,400 6,200 5,800 6,000 5,600 5,800 5,400 5,600 5,200 5,400

Gross Profit/Acre Gross 5,200

5,000 Profit/Acre Gross Serenade Chemical 5,000 Standard Serenade Copper/Sulfur ConventionalConventional LettuceLettuce GrowerGrower OrganicOrganic GrowerGrower

Main Reasons Biopesticides Used (from 2003 BPIA Market Survey) Reason FL CA FL Golf Volunteered CA PCA Distributor Grower Grower Supt. Environmentally 30% 46% 43% 30% 75% Safe: Operator Safety: 23% 29% 20% 23% 15% Product Efficacy: 17% 29% 17% 13% 5% More 10% 11% 10% 13% 15% Natural/Safe: Public 9% -- 3% 7% 13% Perception: Organic Farming: 13% -- -- 3% -- ######Handouts1.ppt 11/19/98 7:55 PM (15)

Main Reasons Biopesticides Not Used (from 2003 BPIA Market Survey) Reason FL CA FL Golf Volunteered CA PCA Distributor Grower Grower Supt. Not as 44% 50% 27% 13% 30% Effective: Higher Cost: 46% 36% 23% 23% 30% Lack of 14% 29% 47% 47% 43% Awareness: Old Habits: 4% -- 13% 10% 10% Lack of 6% 7% -- 7% 15% Research:

BiopesticidesBiopesticides willwill playplay aa rolerole inin thethe FutureFuture ofof CaliforniaCalifornia AgricultureAgriculture

„„ ConsumersConsumers andand globalglobal tradetrade areare drivingdriving agricultureagriculture toto moremore benignbenign productsproducts „„ AdoptionAdoption maymay bebe fastfasterer outsideoutside thethe USUS „„ ThereThere areare manymany moremore newnew b biopesticideiopesticide AIsAIs waitingwaiting approvalapproval thanthan traditionaltraditional productsproducts „„ ThereThere isis aa gapgap betweenbetween landland grantgrant universityuniversity researchresearch andand on-farmon-farm usageusage [researchers[researchers testtest stand-alone;stand-alone; farmersfarmers useuse tanktank mixesmixes andand rotationalrotational programs]programs] „„ On-farmOn-farm demosdemos withwith emphemphasisasis onon IPMIPM programsprograms cancan bridgebridge thethe gapgap „„ FarmersFarmers needneed moremore informationinformation about these new productsproducts