AgraQuest Inc announces the registration and initial sales of its biofungicide product in Japan. The product, which is sold as Serenade in the United States, Chile, Mexico, New Zealand and Costa Rica, is sold under the name Impression in Japan for grapes and greenhouse tomatoes. Additional crops expected on in the first half of 2004 are eggplant and strawberry for gray mold, and vegetables including cucurbits, solanaceous and rosaceae, etc. for powdery mildew.

AgraQuest signed a distribution agreement with SDS Biotech, K.K. for selling Impression. "SDS has conducted excellent research and development with Serenade since 1998," said Dr. Pam Marrone, AgraQuest's President and CEO. "This has been a great partnership, as AgraQuest tailored the product for the Japanese market." The fungicide market in Japan is US $1 billion according to SDS. Biopesticides are gaining greater usage as consumers worldwide show concern about chemical residues in their food.

Takashi Shirai, President & Representative Director of SDS Biotech K.K. commented that he is very optimistic that this is the beginning of a solid partnership in which both companies will benefit from the synergies of each others' strengths. "Jointly we will discover, develop, manufacture and market environmentally friendly, natural pest management products for the agricultural, institutional and home markets."

AgraQuest is developing and commercializing a pipeline of natural pest management products including Serenade and Sonata Biofungicides, Biotune Enhancer, Muscodor Biofumigant, and Virtuoso Bioinsecticide.

SDS is devoted to the development of IPM (integrated pest management) products, while expanding its business with key proprietary fungicides for vegetables and fruit trees and herbicides for rice paddy. SDS already has a line of biopesticides, including beneficial nematodes and Bacillus thuringiensis bioinsecticide.