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Crop Biotech Update

Evogene and Ormat Announce Biodiesel Collaboration

September 28, 2007

Evogene Ltd. and Orfuel Inc., a subsidiary of Ormat Industries Ltd., will collaborate to develop non-edible plants displaying improved oil yield and capable of being grown in non-arable lands for their use as biofuel feedstocks. Under the agreement, Evogene will use its biotechnological capabilities, such as gene and molecular marker discovery, in the development of enhanced plants. Orfuel will conduct field trials to evaluate suitability and methodologies for using such crops for biodiesel production. Evogene and Orfuel intend to establish a joint venture aimed at commercialization of the developed plants upon the completion of the project.

"For many reasons, there is an enormous and growing need for alternative feedstocks for the biodiesel industry, and we are convinced that with our advanced plant biotechnological capabilities we will be able to develop appropriate crops for this purpose” stated Mr. Martin Gerstel, Evogene's Chairman.