December 13, 2005

Melissa Katsimpalis
XY Inc.
970-484-7500

David koontz
SeaWorld
619.226.3619

A WORLD FIRST —SEX OF DOLPHIN DETERMINED PRIOR TO CONCEPTION, XY INC. TECHNOLOGY USED

FORT COLLINS--The world’s first sex-selected marine mammal, an Atlantic bottlenose dolphin, was born recently at SeaWorld San Diego, using, XY Inc. sex-selection technology®.

"SeaWorld’s sex-selected dolphin calf is a first for the zoological community, which endeavors to provide optimal social environments while managing genetically diverse populations,” said Dr. Justine O’Brien, SeaWorld and Busch Gardens reproductive physiologist.

In October 2004, O’Brien and Dr. Todd Robeck, Busch Entertainment Corporation corporate director of theriogenology, based at SeaWorld San Antonio, artificially inseminated Sandy, a 26-year-old Atlantic bottlenose dolphin at SeaWorld San Diego with sperm, which had been sorted, using XY sex-selection technology®.

XY Inc., headquartered in Fort Collins, holds the master license for all sperm-sorting in non-human mammals worldwide. "

To produce a beautiful, live dolphin whose sex was predetermined is a first in the world of science and in the race to protect and preserve threatened and endangered species,” said XY Inc. CEO Mervyn Jacobson. “We are delighted our technology was able to help achieve such a wonderful outcome.”

Sperm sorting involves separating sperm that carry the X chromosome and produce females from sperm that carry the Y chromosome and produce males. Following separation into female and male populations, sperm are frozen and stored for future insemination. The sexing procedure does not involve genetic modification – it simply separates the female- and male-producing sperm. The technique was pioneered by XY Inc. in conjunction with the USDA and Colorado State University.

High accuracy of the procedure in dolphins was demonstrated in trials during 2003 and 2004 with sexed-sperm samples containing greater than 90 percent of the desired sex.

On Oct. 6, 2005, Sandy gave birth to a healthy female calf under the watchful eyes of SeaWorld’s dolphin trainers and veterinarians. The calf weighed approximately 40 pounds and measured between 3½ and 4 feet.

“We're elated about the birth of this sex-selected female calf,” said Robeck. “This achievement is a significant step in the application of sperm-sexing technology to wildlife species management, bolstering SeaWorld and Busch Gardens innovative zoological stewardship.”

The successful birth was a collaborative effort between SeaWorld’s veterinary, animal care and training staffs and XY Inc.

K. Michael Evans, director of flow cytometry at the livestock biotechnology company Inguran, Navasota,Texas, also played a role in the technological development.

While this reproductive technology will significantly assist zoological institutions around the globe to optimally manage its species genetic diversity, the knowledge gained from the scientific research ultimately may have application in marine and terrestrial animals in the wild, including endangered species.

XY Inc. has emerged as the world leader in the research, development and commercialization of sex-selection® techniques in non-human mammals, including cattle, horses, pigs, sheep and endangered species.