Conference call and webcast: today, May 21, 2025, 9:00 am ET

Financial Highlights:

   -- In the first quarter of 2025, total revenues were approximately $2.4 
      million, compared to approximately $4.2 million in the first quarter of 
      2024. The first quarter of 2024 revenues included license fee payments 
      totaling $3.5 million - $2.5 million from Lavie Bio's license fee under 
      its collaboration with Corteva, and $1.0 million from AgPlenus' license 
      fee under its collaboration with Bayer. The primary driver of revenue in 
      the first quarter of 2025 was an increase in seed sales by Casterra. 
 
   -- During the fourth quarter of 2024 and the beginning of 2025, Evogene 
      established an expense reduction plan which is expected to be completed 
      by the second quarter of 2025. This reduction in expenses is already 
      partially reflected in the financial results of the first quarter of 
      2025. 
 
   -- In the first quarter of 2025, total R&D expenses were approximately $3.2 
      million, compared to approximately $4.8 million in the first quarter of 
      2024. This decrease is mainly due to the decrease in Biomica's and Lavie 
      Bio's R&D activity. 
 
   -- In the first quarter of 2025, total Sales & Marketing expenses were 
      approximately $0.6 million compared to approximately $1.0 million in the 
      first quarter of 2024. This decrease is mainly due to the decrease in 
      Lavie Bio's S&M activity. 
 
   -- In the first quarter of 2025, total Operating expenses net were 
      approximately $5.0 million, compared to approximately $8.0 million in the 
      first quarter of 2024. This decrease is mainly due to the decrease in 
      Lavie Bio's and Biomica's operating activity. 
 
   -- Evogene announced on April 21, 2025 the acquisition of most of the 
      activity of Lavie Bio by ICL, for $15.25 million. In addition, ICL will 
      acquire MicroBoost AI for Ag, for approximately $3.5 million. Lavie Bio 
      will redeem the SAFE investment, made by an ICL affiliate. Acquisition 
      completion is expected during Q2 2025, following satisfactory completion 
      of customary closing conditions. This transaction is expected to generate 
      value for Evogene both directly, through the sale of MicroBoost AI for Ag 
      and indirectly, through dividends, as Evogene will remain a major 
      shareholder in Lavie Bio. 
 
   -- As of the end of the first quarter of 2025, the company's cash and 
      short-term bank deposits balance was approximately $9.8 million, 
      including approximately $5.5 million attributable to Biomica. This cash 
      balance does not reflect approximately $2.0 million due from Casterra's 
      outstanding customers, the majority of which were received in the second 
      quarter of 2025. It also excludes the expected proceeds from the sale of 
      Lavie Bio's assets and the MicroBoost AI for Ag tech-engine to ICL, a 
      transaction expected to close in the second quarter of 2025 subject to 
      completion of customary closing conditions. 

REHOVOT, Israel, May 21, 2025 /PRNewswire/ -- Evogene Ltd. $(EVGN)$ (TASE: EVGN), a leading computational biology company aiming to revolutionize the development of life-science-based products, today announced its financial results for the first quarter ended March 31, 2025.

Mr. Ofer Haviv, Evogene's President and CEO, stated: "As part of our ongoing strategy to build a more capital-efficient and value-driven business model, Evogene is focusing on two key priorities: unlocking the full potential of our ChemPass-AI tech-engine in the pharmaceutical sector, and generating cash flow and strategic value from our subsidiaries. These efforts are designed to accelerate near-term monetization opportunities while reinforcing our long-term growth trajectory.

"We've made significant progress in advancing ChemPass-AI tech-engine, our proprietary AI platform for small molecule drug discovery. Over the past quarter, we sharpened its value proposition for the pharma and biotech industries, with a clear focus on addressing a core challenge--designing highly potent, novel compounds that meet complex multi-parameter requirements. An example of our unique ChemPass-AI offering is the foundation model developed in collaboration with Google Cloud, at the core of our lead-optimization activity. Trained on an unparalleled dataset of approximately 38 billion molecules, this model expands our ability to discover structurally unique and clinically relevant compounds, significantly improving the likelihood of success in preclinical and clinical stages. This positions ChemPass-AI as a differentiated and commercially attractive solution for pharma partners seeking next-generation discovery capabilities.

"In parallel, we are taking concrete steps to generate value from our subsidiaries. In April, we announced the acquisition of the majority of Lavie Bio's operations by ICL. This transaction is expected to generate value for Evogene in two ways: directly, through the sale of MicroBoost AI for Ag and indirectly, through dividends. We can also envision long-term upside for Evogene from certain existing collaboration agreements which remain in Lavie Bio and are not part of the transaction. We continue to explore similar strategic opportunities across our subsidiary portfolio, with the goal of unlocking shareholder value and supporting our broader mission through disciplined execution."

"We are confident that these strategic initiatives will drive sustainable growth and position Evogene for long-term success in the evolving life sciences landscape," Mr. Haviv concluded.

Subsidiaries Updates:

Lavie Bio Ltd. -- a leading ag-biologicals company that develops microbiome-based, novel bio-stimulant and bio-pesticide products, utilizing Evogene's MicroBoost AI tech-engine.

   -- April 21, 2025 -- announced the acquisition of most of the activity of 
      Lavie Bio by ICL, for $15.25 million in value. In addition, ICL will 
      acquire MicroBoost AI for Ag, for approximately $3.5 million. Lavie Bio 
      will redeem the prior SAFE investment, made by an ICL affiliate. 
 
   -- Acquisition completion is expected during Q2 2025, following completion 
      of customary and regulatory closing conditions. 

Casterra Ag Ltd. -- focuses on developing integrated solutions for large-scale castor bean farming, utilizing GeneRator AI tech-engine.

   -- Delivery of approximately 250 tons of castor seeds to a partner in Africa 
      -- surpassing the approximately 215 tons delivered in entire 2024. 
 
   -- Strengthening the sales team in Brazil and initial execution of a new 
      marketing and sales strategy. 
 
   -- Castor farming proof of concept trials for grain (not seed) to be sold to 
      castor crushing factories, in Kenya and Brazil, with local partners. 
      Trials are underway in all locations, with initial results expected in Q3 
      2025. 

AgPlenus Ltd. -- specializes in developing novel and sustainable crop protection products, utilizing Evogene's ChemPass AI tech-engine.

   -- February 2025 - discovery of a new mode of action for fungicides against 
      Septoria in wheat. 
 
   -- Advancement in the discovery phase with the identification of promising 
      candidate compounds targeting the new MoA. 

Biomica Ltd. -- a clinical-stage biopharmaceutical company developing innovative microbiome-based therapeutics, utilizing Evogene's MicroBoost AI tech-engine.

   -- BMC128 - Phase I clinical study is progressing. New data shows early 
      signs of monotherapy effectiveness, through immune activation within 14 
      days. 
 
   -- Obesity and Longevity - initial computational analyses indicate that 
      microbiome-based solutions can be effectively designed and developed. 
      Early-stage discussions are taking place to evaluate potential 
      partnerships. 
 
   -- Additional funding is required for Phase II of the clinical study. An 
      expense reduction plan has been established, to be completed by Q3 2025. 
      Expense reduction is already reflected in Biomica's financial results of 
      Q1 2025. 

Financial Highlights:

Cash Position: As of March 31, 2025, Evogene held consolidated cash, cash equivalents, and short-term bank deposits of approximately $9.8 million, compared to approximately $15.3 million as of December 31, 2024. This cash balance does not reflect approximately $2.0 million due from Casterra's outstanding customers, the majority of which were received in the second quarter of 2025. Excluding Lavie Bio and Biomica, Evogene and its other subsidiaries used approximately $3.0 million in cash during the first quarter of 2025.

Revenue: Revenues for the first quarter of 2025 were approximately $2.4 million, a decrease from approximately $4.2 million in the same period of the previous year. This decline was primarily due to revenues recognized in 2024 from Lavie Bio's license agreement with Corteva and AgPlenus's license agreement with Bayer. In 2025, revenues were mainly driven by Casterra's increased seed sales.

R&D Expenses: Research and development expenses for the first quarter of 2025 were approximately $3.2 million, a significant decrease from approximately $4.8 million in the same period of the previous year. The decrease in expenses in 2025 was mainly due to lower research and development expenses in Biomica and Lavie Bio compared to the same period the previous year, as well as the closure of Canonic's operations during the first half of 2024.

Sales and Marketing Expenses: Sales and marketing expenses decreased to approximately $645 thousand in the first quarter of 2025 compared to approximately $992 thousand in the same period last year. The decrease was primarily driven by a reduction in Lavie Bio's sales and marketing activities this year.

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