Biosys has granted exclusive rights to market and distribute itsnematode-based products to the commercial turf market inJapan to a joint venture company, SDS Biotech K.K.

SDS was formed by Sandoz Ltd. of Switzerland and ShowaDenko K.K. of Japan.

Biosys (NASDAQ:BIOS) of Palo Alto, Calif., has worked with SDSfor three years to confirm the efficacy of Biosys' products tocontrol pests on commercially grown turf, especially golfcourses.

"In Japan, governmental restrictions on the continued use ofchemical pesticides on golf courses have created an attractiveopportunity for biological insecticides," said Venkat Sohoni,Biosys' president and chief executive officer, "and we believeBiosys' technology to be a viable alternative."

Sales under the BioSafe label will begin upon final regulatoryapproval in Japan. Nematodes, which ar microscopic worm-likeorganisms, can seek out and kill soil insects such as armyworms, cutworms and billbugs without polluting theenvironment or posing harm to people or animals.

Nematodes are deemed environmentally safe and are exemptfrom registration with U.S. Environmental Protection Agencyand in several European countries.

Biosys' stock was up $1 a share on Tuesday, closing at $9.75.

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