SAN CARLOS, California, June 30, 2006 - Deltagen, Inc. (Pink Sheets: DGEN), a leading provider of drug discovery tools to the biopharmaceutical industry, today reported financial results for the three months ended March 31, 2006.

Revenues:  The Company's consolidated revenues for the three months ended March 31, 2006 totaled $1.879 million.  The revenues were primarily attributable to license fees associated with the provision of knockout mice and related phenotypic data under its DeltaOne^TM program and access extension fees under its DeltaBase^® collaborations.  The access periods under the Company's DeltaBase collaborations expire between June 30, 2006 and March 31, 2007, and there are no assurances that our DeltaBase collaborators will continue to pay access extension fees.  No revenues from our NIH contract were recognized and no new delivery orders were placed by the NIH in the first quarter of 2006.  We expect that revenues under the NIH contract will be highly variable from quarter to quarter.  We currently expect to recognize approximately $3.2 million from the NIH contract in the second quarter of 2006.

Interest Income:  The Company had interest income of $0.100 million for the three months ended March 31, 2006.

Expenses:  Consolidated expenses for the three months ended March 31, 2006 were $1.548 million.  The expenses were primarily attributable to salaries and other general and administrative expenses, third-party royalty and commission obligations, and patent prosecution expenses.  Legal and administrative fees associated with prosecution of the Company's patent portfolio were $0.373 million for the three months ended March 31, 2006.

Net Income:  Net income before taxes for the three months ended March 31, 2006 was $0.431 million.  

Cash and Cash Equivalents:  As of March 31, 2006, the Company had $10.392 million in consolidated cash and cash equivalents.

The unaudited consolidated financial statements for the first quarter of 2006, accompanying notes, and Management's Discussion and Analysis of Financial Condition and Results of Operations for such period will be posted on Deltagen's website (www.deltagen.com). 

The consolidated balance sheet for 2005 is in the process of being audited.  The Company currently intends to post the audited 2005 consolidated balance sheet on the Company's website when the audit has been completed, together with the auditors' opinion, explanation of adjustments, and revised notes and revised Management's Discussion and Analysis of Financial Condition and Results of Operations for such period.

The consolidated balance sheet for the first quarter of 2006 reflects certain expected adjustments to the 2005 consolidated balance sheet made in connection with the audit.  The expected adjusted 2005 consolidated balance sheet is provided below, which balance sheet is subject to further changes or adjustments upon completion of the audit.

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 Deltagen's future revenues and operating results, royalty and milestone revenues, third-party royalty obligations and third-party licenses and intellectual property, 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, specifically including those relating to Deltagen's ability to achieve its operational objectives and revenue projections and to obtain patent protection for its discoveries, that may cause Deltagen's actual results to be materially different from any future results expressed or implied by such forward-looking statements. Information identifying such important risk factors is contained in "Management's Discussion and Analysis of Financial Conditions and Results of Operations", which can be found at Deltagen's website at www.deltagen.com. Deltagen undertakes no obligation to update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise.