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RNS Number : 1880K
Plant Health Care PLC
16 December 2008



16 December 2008







Plant Health Care plc

('Plant Health Care' or 'the Company')




PLANT HEALTH CARE AND MONSANTO SIGN FINAL AGREEMENT FOR THE COMMERCIALISATION OF HARPIN TECHNOLOGY







Plant Health Care Inc, a wholly owned subsidiary of Plant Health Care plc (AIM: PHC), and Monsanto Company (NYSE: MON) have entered into an agreement for the commercialisation of harpin-based technology as a seed treatment in Monsanto's major row crops and vegetables. The harpin technology offers farmers in-season benefits, including the suppression of pests like nematodes and yield-inhibiting diseases, as well as additive plant health benefits. The technology is a specific type of protein that activates a plant's intrinsic ability to protect itself and enhances growth. Over the past year Monsanto has evaluated the technology and will proceed to continue commercial development of harpin seed treatment as part of its global seed treatment platform.




Under the long-term agreement, Plant Health Care will license to Monsanto the exclusive rights to commercialise harpin seed treatment technology in corn, soybeans, cotton, canola and selected vegetables. In return, Plant Health Care will receive the milestone payment agreed under the Evaluation and Development Agreement announced in December 2007, plus ongoing royalties based on the total volume of Harpin seed treatment. As part of the agreement Monsanto will issue an order of product to be delivered by the end of this year. Financial terms were not disclosed, although Plant Health Care believes the agreement will make a material contribution to the company's future revenue and profits.




John Brady, CEO of Plant Health Care commented, 'This agreement, and the order for product which is 12 months earlier than anticipated, is transformational for Plant Health Care and is fundamental proof of our model for commercialising our technology portfolio in partnership with major industry players. Monsanto is an excellent partner, and its seed brands hold leading positions around the world.




He added: 'Plant Health Care's range of technologies, which includes harpin, are ideally placed to maximize yield benefits in today's environment of rising food prices and increased global demand for high-protein diets.'




Randy Barker, Monsanto's seed treatment strategy lead, said, 'We are pleased to be working with Plant Health Care to deliver technology that can provide plant health benefits. Seed treatments are a natural complement to our seed strategy and yield-enhancing technology, which enhance the profitability for our farmer customers.'




Monsanto seeds treated with Harpin may be available to farmers as part of its Acceleron brand seed treatment as early as 2010. Monsanto's Acceleron brand will represent a wide range of evolving seed-performance technologies dedicated to improving plant health.




For further information, please contact:




Plant Health Care plc
Monsanto Company

John Brady, Chief Executive Officer
Danielle Jany

Tel: +1-603-525-3702

Tel: +44-20-7920-3150 (16-19 December)
Tel: +1-314-694-2478

jabrady@planthealthcare.com
danielle.c.jany@monsanto.com




Evolution Securities



Tavistock Communications

Tim Worlledge / Tim Redfern
Jeremy Carey/Matt Ridsdale

Tel: +44-20-7071-4300
Tel: +44-20-7920-3150

tim.worlledge@evosecuties.com/

tim.redfern@evosecuties.com
jcarey@tavistock.co.uk / mridsdale@tavistock.co.uk

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08:50GMT 16Dec2008-Plant Health Care rises on Monsanto deal

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Shares in Plant Health Care rise 17.5 percent to 218 pence as the group reaches an agreement to license its harpin seed treatment to U.S. biotech company Monsanto Co for row crops and vegetables.

'Today's confirmation that Monsanto will deploy harpin in its seed-coating product for soybeans, corn, cotton and certain vegetables gives investors the long-term visibility they have been waiting for,' says Philip Sparks at Evolution Securities.

He estimates the deal could generate about 15 million pounds a year of earnings in the medium term, and the U.S. sales of harpin as a seed coating could be worth 450 pence per share on their own.

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Reuters messaging rm://paul.sandle.reuters.com@reuters.net



08:47GMT 16Dec2008-Kesa falls on poor H1 results, downgrades

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Plant Health Care plc surges 16 percent after announcing its wholly owned subsidiary, Plant Health Care Inc, and Monsanto Co have entered into an agreement for the commercialisation of harpin-based technology as a seed treatment in Monsanto's major row crops and vegetables.

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