DGEN Deltaagen Inc (CE)

Deltagen, Inc. (Pink Sheets:DGEN) paid a cash dividend of $0.05 per common share on May 31, 2007 to shareholders of record as of the close of business on May 21, 2007 (�May 2007 Dividend�). The Company also paid in August and November 2007 to certain former shareholders of Xenopharm, Inc. (�XP Holders�) a cash dividend of $0.25 per common share in connection with the concurrent issuances in August and November of 131,754 shares and 981,123 shares, respectively, of the Company�s common stock to the XP Holders (�XP Dividends�). The XP Dividends related to the Company�s December 2006 dividend of $0.20 per share and the $0.05 per share May 2007 Dividend, as described in the Company�s October 29, 2007 press release reporting the Company�s financial results for the third quarter of 2007. The Company estimates that 100% of the dividends paid to a shareholder in 2007 will generally be treated first as a nontaxable return of capital to the extent of the shareholder�s tax basis in his or her shares, with any excess amount over the shareholder�s tax basis being treated as capital gain. The Company does not make any guarantees as to the ultimate tax treatment and advises shareholders to consult their tax advisors. About Deltagen Deltagen, Inc. is a leading provider of drug discovery tools to the biopharmaceutical industry. Deltagen offers access to its extensive inventory of knockout mouse lines and related phenotypic data, which enhance the efficiency of target validation and drug discovery. In addition, Deltagen offers target validation data in the areas of immunology and metabolic diseases. Deltagen's products and programs have been validated by customers and partners such as Eli Lilly & Co., GlaxoSmithKline, Merck & Co., Inc. and Pfizer Inc. For more information on Deltagen, visit the Company's website at www.deltagen.com. Safe Harbor Statement This press release contains �forward-looking statements,� including statements about dividend declarations and estimated tax treatment thereof, as well as other matters that are not historical facts or information. These forward-looking statements are based on management�s current assumptions and expectations and involve risks, uncertainties and other important factors that may cause Deltagen�s actual results to be materially different from any future results expressed or implied by such forward-looking statements. There are no assurances that the Company will declare any future dividends. Deltagen undertakes no obligation to update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise.