Evogene Reports Second Quarter 2009 Financial Results

REHOVOT, ISRAEL--(Marketwire - August 13, 2009) - Evogene Ltd. EVGN announced today its financial results for the second quarter, ended June 30, 2009.

Ofer Haviv, Evogene's president and CEO, stated: "During the second quarter of 2009, our accelerating growth and development continued with new collaborations with world leading ag-biotech companies, important enhancements to our discovery methodologies and further broadening of the scope of our R&D activities. These achievements included the recently announced initiation of a collaboration with Syngenta Biotechnology, focusing on identifying plant genes for resistance to soybean nematode, one of the most devastating and yield limiting pests of soybean. This collaboration is the first where we will be focusing our gene discovery capabilities in the critical area of pest protection for major field crops."

Mr. Haviv continued: "In addition, we greatly appreciate the vote of confidence expressed by our investors through the recent exercise of 99.6% of the company's outstanding Series 1 options. These options were issued as part of the company's IPO in June 2007, and with the approximately $9 million received from this exercise, Evogene ended the quarter with cash and cash equivalents of $39 million."

Revenues for the first six months ended June 30, 2009 were $4.8 million, compared to $202 thousand for the same period in 2008. Revenues for the second quarter of 2009 were $2.4 million, compared to $88 thousand for the same period in 2008. Revenues for the first six months and second quarter of 2009 include revenues generated mainly under the collaboration with Monsanto.

Profit from ordinary operations for the first six months of 2009 was $860 thousand, compared to a loss from ordinary operations of $2.7 million in the same period in 2008. Profit from ordinary operations for the second quarter of 2009 was $236 thousand, compared to a loss from ordinary operations of $1.5 million in the same period in 2008.

Total comprehensive loss for the first six months ended June 30, 2009, was $5.1 million, or $0.2 per share, as a result of $6.3 million of non-cash financial expenses due to revaluation of certain non-employee options, primarily options issued in the 2007 IPO. These revaluations for accounting purposes reflect changes in the fair market value of Evogene ordinary shares and the market value of the options. This is compared to a total comprehensive loss of $1.5 million, or $0.12 per share, in the same period in 2008, including non-cash financial revenues of $0.5 million due to the revaluation of options.

Total comprehensive loss for the second quarter of 2009 was $3.8 million, or $0.14 per share, as a result of $4.7 million of non-cash financial expenses due to revaluation of certain non-employee options, primarily options issued in the 2007 IPO. This is compared to a total comprehensive loss of $0.9 million, or $0.06 per share, including non-cash financial revenues of $0.3 million due to the revaluation of options.

As of June 30, 2009, Evogene had $39 million in cash, cash equivalents, cash deposits and short-term marketable securities compared to $29.4 million as of December 31, 2008.

About Evogene

Evogene is a world leading developer of improved plant traits. The company's proprietary product development platform combines state of the art computational gene discovery technology (The 'ATHLETE'), plant and field validation capabilities and unique selection systems. Evogene's current programs focus on the improvement of key plant traits, such as yield and stress tolerance, and the improvement of plants specifically for biofuel uses. Evogene has collaboration and licensing agreements with world leading companies in the ag-biotech and alternative energy industries. Evogene's headquarters are in Rehovot, Israel, and its stock is traded on the Tel Aviv Stock Exchange EVGN. For additional information, please visit Evogene's website at www.evogene.com.

This press release contains "forward-looking statements." These statements include words like "may," "expects," "believes," "scheduled" and "intends," and they describe opinions about future events. These forward-looking statements involve known and unknown risks and uncertainties that may cause the actual results, performance or achievements of Evogene Ltd. to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

BALANCE SHEETS Dollar in thousands (except per As of share data) December 31, As of June 30, ------------ -------------------- 2008 2009 2008 Audited Unaudited Unaudited ------------ --------- --------- Current assets Cash and cash equivalents 14,490 14,039 8,516 Short term bank deposits and marketable securities 14,883 24,974 2,088 Account receivables 1,890 621 - Other account receivables and prepaid expenses 322 453 486 ------------ --------- --------- 31,585 40,087 11,090 ------------ --------- --------- Non-current assets Investment in associate company 136 - - Long term deposits 22 30 24 Property and equipment, net 1,359 2,921 994 Finance derivative 585 37 177 Intangible assets 261 240 308 ------------ --------- --------- 2,363 3,228 1,503 ------------ --------- --------- Total Assets 33,948 43,315 12,593 ============ ========= ========= Current liabilities Current maturities of Deferred Revenues and other long-term liabilities (* 3,927 3,954 23 Trade payable 403 628 357 Liability related to traded warrants (* 262 - 518 Other accounts payable and accruals 842 1,087 868 ------------ --------- --------- 5,434 5,669 1,766 ------------ --------- --------- Long-term Liabilities: Liability related to finance lease 123 120 127 Liability related to traded warrants (* 2,388 5,791 1,363 Liability related to chief scientists grants 2,828 3,086 1,592 Deferred revenues (* 13,556 11,939 718 Accrued severance pay, net 9 9 12 ------------ --------- --------- 18,904 20,945 3,812 ------------ --------- --------- Shareholders' Equity Share capital 67 79 47 Premium on shares 34,841 46,850 20,797 Option Warrants 72 72 - Other capital reserves 2,788 2,995 2,093 PUT Option (4,433) (4,433) - Capital fund from translation of the financial reports - - 1,714 Accumulated deficit (23,725) (28,862) (17,636) ------------ --------- --------- Total equity capital 9,610 16,701 7,015 ------------ --------- --------- Total liabilities and shareholders' equity 33,948 43,315 12,593 ============ ========= ========= *) Reclassified STATEMENTS OF COMPREHENSIVE INCOME Dollar in thousands (except per share data) For the For the period of For the period of Year three months six months ended on ended on ended on --------- -------------------- -------------------- December June 30, June 30, June 30, June 30, 31, 2008 2009 2008 2009 2008 Audited Unaudited Unaudited Unaudited Unaudited --------- --------- --------- --------- --------- Revenues 3,426 2,442 88 4,827 202 Cost of revenues 1,414 1,275 3 2,281 32 --------- --------- --------- --------- --------- Gross profit 2,012 1,167 85 2,546 170 --------- --------- --------- --------- --------- Operating expenses: Research and development, net 4,078 443 1,023 783 1,926 Business development expenses 922 171 264 315 401 General and administrative 1,160 317 265 588 513 --------- --------- --------- --------- --------- Profit (Loss) from ordinary operation (4,148) 236 (1,467) 860 (2,670) Financial income 449 755 82 501 183 Financial expenses (73) - (225) (20) (425) Financial income (expenses) due to Revaluation of Options (247) (4,736) 316 (6,266) 457 Financial income (expenses) due to Revaluation of Obligation to the OCS (675) (4) 113 (166) 154 Share of losses of an associate company (114) (12) - (46) - --------- --------- --------- --------- --------- Net loss (4,808) (3,761) (1,181) (5,137) (2,301) Other Comprehensive income: Currency translation adjustment of financial statement 293 - 328 - 779 --------- --------- --------- --------- --------- Total Comprehensive loss (4,515) (3,761) (853) (5,137) (1,522) ========= ========= ========= ========= ========= Loss per share (in dollar) (0.22) (0.14) (0.06) (0.20) (0.12) ========= ========= ========= ========= =========