NemOut contains an EPA registered bio-rational fungal nematicide formulated for applications at planting and at side dressing. This new product is based on Paecilomyces lilacinus strain 251; it is being evaluated by the Delta Research & Extension Center of Mississippi State University and is being commercially introduced by Plato Industries of Houston, Texas. The active ingredient in NemOut has been developed and is produced by ProPhyta GmbH of Germany and is presently labeled for use on a variety of vegetable crops and for turf use. The registration process for cotton is underway and registration is expected in time for limited marketing in 2007. NemOut has activity against reniform, root knot and lance types of nematodes. Field tests were conducted in 2006 evaluating NemOut as an in-furrow spray at planting and as a seed treatment; thus far, results are promising as an alternative for the control of nematode pests in cotton. The commercialization process for NemOut is focused on identifying the application methodology that best fits grower practices while providing the most cost-effective efficacy.