Divergence, Inc'

1
Divergence, Inc.

• Safe and Effective Pest Control

Enhanced Crops
Outstanding Value
May 19, 2009
2
Divergence is Developing Safe and
EffectiveProducts for the Control of Parasites

• Plant Nematicides
• Highly Potent against a Broad Spectrum of
  Parasites
• Successful Field Trials (Infection Reduced/Yield
  Increased)
• Favorable Toxicology Results

Nematicides
Resistance Genes

• Crops with Nematode Resistance
• Demonstrated Performance in Whole-Plant
• Transformation
• Strong, Productive Relationship in Place with
• Monsanto for Transgenic Soybeans

Animal Health Products

• Animal Health
• Product in Development for 2010
• Launch by Collaborator
• In vivo-Active Anti-Parasitic
• Compounds Identified

3
Divergence Has Developed a Highly Promising
Nematicide Portfolio

• Well demonstrated efficacy in numerous field
  tests against several species of plant parasites
• Potential for multiple application methods and
  numerous crops
• Novel synthetic compounds leading to a
  potentially robust patent position
• Indications of a highly attractive toxicology
  profile

4
Nematicides Demonstrate Substantial Gall
Reduction and Yield Increase in 2008 California
Field Trials
6.0
Seeded Squash Gall Reduction at 8 weeks
5.0
4.0
3.0
gall rating
2.0
1.0
0.0
6kg
3kg
6kg
3kg
6kg
3kg
4kg
9gal
Rate per Hectare Treatment
Non- treated
DX2
DX3
DX3 banded
oxamyl
Telone
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Nematicides Demonstrate Substantial Gall
Reduction and Yield Increase in 2008 California
Field Trials
4.5
Outstanding yield response 2-4X Increase
4.0
3.5
3.0
2.5
kg squash
2.0
1.5
1.0
0.5
0.0
6kg
3kg
6kg
3kg
6kg
3kg
4kg
9gal
Rate per Hectare Treatment
Non- treated
oxamyl
Telone
DX2
DX3
DX3 banded
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Divergences Leads Provide Significant Root
Protection
Treated with Divergence Compound
Untreated Plant
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HarvestTM Divergences Agrochemical Discovery
Platform
Harvest integrates fundamental advances in
molecular modeling with Divergence's
sophisticated discovery pipeline 
Rapidly yields new avenues for exploration of
chemical space
Provides alternatives to a lead compounds
shortcomings such as toxicity, uptake, or cost of
goods
Provides novel opportunities for intellectual
property
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Divergence is Willing to Use HarvestTM to
Collaborate with Companies

• Able to rejuvenate a companys stalled projects
• Applicable to many types of synthetic and natural
  compounds
• Can lead to the discovery of all types of
  pesticides and other product classes

• Validated approach the source of our own
• nematicides

9
Divergences RNAi / Genomics Platform is
Powerful, Especially in Transgenics

• Divergence Began with Strengths in Genomics and
  Bioinformatics Applied to Nematodes
• Divergence Was an Early Adopter of RNA
  interference
• Double Stranded RNA Silences Genes (Fire and
  Mello, 1998)
• Plant Can Deliver dsRNA and Silence Essential
  Genes in the Invading Nematode

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Other Value-Creating Opportunities

• Veterinary Biomarker
• Collaboration since 2006 with a Leader in
  Veterinary Medicine (Undisclosed)
• Proof of Concept Achieved
• Relationship Has Been Expanded
• Royalty Opportunity as Early as 2010
• Ectoparasite Control (Fleas, Ticks)
• Discovered in vivo Active Compound
• Novel Mode of Action
• Licensing Opportunity
• Filariasis (Elephantiasis, Riverblindness)
• NIH Funded Macrofilaricide Discovery Project
• Synergistic with Agrochemical Discovery
• Commercialization Would Occur through Foundation
  Support

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Divergence has Built an Outstanding Team with
Unique Focus and Capabilities
Divergence Team at Microplot Trial Sept. 07

• Current Team
• 27 Full-time,
• Including 10 Ph.D.s
• Builds on St. Louis
• Strengths
• 10 from Washington U.
• 4 from Monsanto
• Strengths in Informatics-Driven Discovery,
  Molecular Biology, Genomics, Nematology, Assay
  Development, and Chemistry

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Divergence Benefits From the Leadership of
Strong Boards
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Divergence Has Raised more than 35 Million

• 21M from Equity Rounds (most recently Closing a
  12M Round in early 09)
• 8M from Corporate Relationships
• 7M from Research Grants
• gt40 of Funds Raised are Non-Dilutive

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Divergence Offers Several Opportunities for
Collaboration

• Nematicides
• Use of HarvestTM Platform for Discovery of Novel
  Compounds
• Ecto-Parasiticides
• Anthelmintics for Animal and Human Applications

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Divergence, Inc.

• Safe and Effective Pest Control

Enhanced Crops
Outstanding Value