$98MIL BP BUY OF NEXT-GEN BIOFUELS

…BP to acquire Verenium's cellulosic biofuels business…Verenium to receive $98.3 million…
July 15, 2010 (PR Newswire)

"…BP Biofuels North America [recently acquired Verenium Corporation]'s cellulosic biofuels business, including facilities in Jennings, LA and San Diego, CA for $98.3 million…Verenium will retain its commercial enzyme business, including its biofuels enzymes products and have the right to develop its own lignocellulosic enzyme program. Verenium will also retain select R&D capabilities, as well as rights to access select biofuels technology developed by BP using the technology it is acquiring from Verenium…"

[Carlos A. Riva, President/CEO, Verenium:] "We are very pleased that our strategic development partnership with BP has successfully advanced our cellulosic ethanol technology to the cusp of commercialization…We believe that BP is the right company to…expedite the commercialization of the technology."

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[Philip New, CEO, BP Biofuels:] "This acquisition demonstrates BP's intent to be a leader in the cellulosic biofuels industry in the U.S. and positions us as one of the few global companies with an integrated end-to-end capability, from R&D through commercialization to distribution and blending…By acquiring Verenium's cellulosic biofuels technologies, BP Biofuels should be well placed to accelerate the delivery of low cost, low carbon, sustainable biofuels, at scale."

"BP will become the sole investor in Vercipia Biofuels, a 50-50 joint venture formed by BP and Verenium in February 2009, and will independently manage all of Vercipia's activities going forward. Similarly, Galaxy Biofuels, a 50-50 joint development company owned by BP and Verenium, will be owned 100% by BP. This transaction is expected to close in the third quarter of 2010…"