DVSA Diversa (MM)

SAN DIEGO, May 17 /PRNewswire-FirstCall/ -- Diversa Corporation (NASDAQ:DVSA), a leader in the development of high-performance specialty enzymes, announced today that it has achieved two important product development milestones under its collaboration agreement with BASF (NYSE:BF), which have resulted in two payments to Diversa in late 2006. Diversa has successfully completed the initial research phase of the program, and both organizations have agreed to take the programs forward to the next development stage. Diversa is currently applying its DirectEvolution(R) enzyme optimization tools to refine the properties of the lead candidate. In February of 2006, the two companies announced that they had entered into an expanded alliance under which they would focus on improving industrial processes and product performance in key market areas such as pulp and paper and fine chemicals by combining BASF's application know how, chemical and biotechnology expertise, and market knowledge with Diversa's enzyme discovery and optimization technologies. Under the agreement, Diversa is responsible for discovery and optimization of new enzymes, and BASF is responsible for product and process development and all commercialization matters. "BASF is the world's leading chemical company, and achieving this important milestone reinforces Diversa's ability to provide custom enzyme solutions to a proven market leader," stated Edward T. Shonsey, Diversa's chief executive officer. "We are very pleased with the progress our teams are making on this project," said Dr. Alfred Hackenberger, president of specialty chemicals research at BASF. "We look forward to continuing to leverage our combined expertise in biotechnology and chemistry in this program, which is aimed at system innovations for diverse industrial applications." About BASF BASF is the world's leading chemical company: The Chemical Company. Its portfolio ranges from chemicals, plastics, performance products, agricultural products and fine chemicals to crude oil and natural gas. As a reliable partner to virtually all industries, BASF's high-value products and intelligent system solutions help its customers to be more successful. BASF develops new technologies and uses them to meet the challenges of the future and open up additional market opportunities. It combines economic success with environmental protection and social responsibility, thus contributing to a better future. BASF has approximately 95,000 employees and posted sales of 52.6 billion euro in 2006. BASF shares are traded on the stock exchanges in Frankfurt (BAS), London (BFA), New York (BF) and Zurich (AN). Further information on BASF is available on the Internet at http://www.basf.com/. About Diversa Since 1994, San Diego-based Diversa Corporation has pioneered the development of high-performance specialty enzymes. Diversa possesses the world's broadest array of enzymes derived from bio-diverse environments as well as patented DirectEvolution(R) technologies. Diversa customizes enzymes for manufacturers within the alternative fuel, industrial, and health and nutrition markets to enable higher throughput, lower costs, and improved environmental outcomes. On February 12, 2007, Diversa entered into a merger agreement with Celunol Corp. pursuant to which a wholly owned subsidiary of Diversa will merge with and into Celunol, with Celunol as the surviving corporation, becoming a wholly owned subsidiary of Diversa. The proposed merger transaction is subject to customary closing conditions, including receipt of certain regulatory approvals and the approval of the stockholders of Diversa and Celunol. For more information, please visit http://www.diversa.com/. Additional Information about the Diversa/Celunol Merger and Where to Find It On May 8, 2007, Diversa Corporation filed with the Securities and Exchange Commission (SEC) an amended registration statement on Form S-4 that includes a proxy statement/prospectus and other relevant documents in connection with the proposed merger between Diversa and Celunol and related transactions. The amended registration statement has been declared effective by the SEC. Investors and security holders of Diversa and Celunol are urged to read the proxy statement/prospectus (including any amendments or supplements to the proxy statement/prospectus) and other relevant materials, because they contain important information about Diversa, Celunol, and the proposed merger and related transactions. Investors may obtain a free copy of these materials and other documents filed with the Securities and Exchange Commission at the SEC's website at http://www.sec.gov/. A free copy of the proxy statement/prospectus may also be obtained from Diversa by directing a request to: Diversa Corporation, 4955 Directors Place, San Diego, CA 92121, Attn. Investor Relations. In addition, investors may access copies of the documents filed with the SEC by Diversa on Diversa's website at http://www.diversa.com/. Participants in the Solicitation Diversa and its executive officers and directors and Celunol and its executive officers and directors may be deemed to be participants in the solicitation of proxies from the stockholders of Diversa in connection with the proposed merger between Diversa and Celunol and related transactions. Information regarding the special interests of these executive officers and directors in the proposed merger and related transactions as well as additional information regarding these individuals is included in the proxy statement/prospectus referred to above. This document is available free of charge at the SEC's website (http://www.sec.gov/) and from Investor Relations at Diversa at the address described above. Forward-Looking Statements Statements in this press release that are not strictly historical are "forward-looking" and involve a high degree of risk and uncertainty. These include statements related to Diversa's ability to continue to discover and optimize novel enzymes for industrial applications. Such statements are only predictions, and the actual events or results may differ materially from those projected in such forward-looking statements. Factors that could cause or contribute to differences include, but are not limited to, risks involved in general with the enzyme development process and risks involved with Diversa's new and uncertain technologies. Certain of these factors and others are more fully described in Diversa's filings with the Securities and Exchange Commission, including, but not limited to, Diversa's amended registration statement on Form S-4 filed with the SEC on May 8, 2007. These forward-looking statements speak only as of the date hereof. Diversa expressly disclaims any intent or obligation to update these forward-looking statements. Contact at Diversa: Contact at BASF: Wendy Kelley Birgit Lau Investor Relations Corporate Communications Diversa Corporation BASF Aktiengesellschaft Tel. +1-858-526-5437 Tel. +49-621-60-41310 e-mail: e-mail: DATASOURCE: Diversa Corporation CONTACT: Wendy Kelley, Investor Relations of Diversa Corporation, +1-858-526-5437, ; Birgit Lau, Corporate Communications of BASF Aktiengesellschaft, +49-621-60-41310, Web site: http://www.diversa.com/ http://www.basf.com/

Copyright