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Aug. 14, 1999

Contact:
Dr. Mervyn Jacobson
CEO/President, XY Inc.
970-491-4764
or
Dr. Duane Garner
VP/Research & Development, XY Inc.
970-491-4764

XY Inc. HIRES RENOWNED RESEARCHER TO LEAD TEAM OF PIONEERS

FORT COLLINS, COLO. - XY Inc., the fast-growing Colorado firm that expects to commercialize semen-sorting techniques in cattle, horses and pigs worldwide in the coming years, has hired Dr. Duane Garner as vice president of research and development.
      Garner, former professor in the School of Veterinary Medicine at the University of Nevada-Reno, leads a scientific team featuring researchers from around the world who have pioneered sperm-sorting technology.
     " Under Dr. Garner's leadership, XY Inc., is accelerating its mission to bring scientifically proven sperm-sorting technologies to market," said Dr. Mervyn Jacobson, CEO and president of XY Inc. "Our success in the market depends on the solidity of our science and the quality of scientists behind our work. XY Inc., is unique in that we've assimilated the best scientific team possible, led by Dr. Garner--one of the industry's top researchers."
      Garner, the world's leading expert in sperm metabolism, viability and freezing, began developing advanced sperm-sexing technology 20 years ago.
     " Dr. Garner has influenced the majority of breakthroughs in sperm-sorting technology over the years," Jacobson said. "He was there in the early 1980s when scientists first saw the possibility of sorting semen based on X and Y chromosomes in sperm. Later, Dr. Garner worked side-by-side with top U.S. Department of Agriculture scientists who actually began separating sperm. Today, he's leading efforts to bring the technology to markets worldwide."
      Prior to his eight years as professor in the School of Veterinary Medicine at the University of Nevada-Reno, Garner served as professor and chairman of the university's department of animal sciences. In 1981, he was a guest scientist at Lawrence Livermore National Laboratory in California. From 1972-85, he served as a professor in the College of Veterinary Medicine at Oklahoma State University.

Garner's extensive research background includes serving as author or co-author of 87 scientific publications and 78 abstracts on animal reproduction and sperm physiology. He also has served as senior author on 45 publications and given 85 presentations or lectures throughout the world.
      In 1997, Garner was recognized as the outstanding researcher in the College of Agriculture at the University of Nevada-Reno.
      At XY Inc., Garner leads a research team that includes Dr. George Seidel, XY Inc.'s director of science and a world-renowned Colorado State University reproductive physiologist; Dr. David Cran of Scotland, a leading researcher in sperm sorting since the early 1990s; John Schenk, a well-regarded reproductive physiologist at Colorado State; and engineers from Cytomation, the biotech instrumentation company that co-founded XY Inc.
      XY Inc.'s success continues to build. The recent birth of Britain's first-ever calves whose sex was determined before conception using artificial insemination techniques was credited to XY Inc. In addition, the company recently announced plans to bring first products to market in late 1999 that offer sex selection in cattle combined with in-vitro fertilization techniques.
      In August 1998, XY Inc. announced the birth of Call Me Madam, the first horse in the world to have her sex selected prior to conception.
      Industry experts predict sex-selection techniques will revolutionize the cattle, horse, sheep and pig-breeding industries worldwide. Applications of sperm sorting in the United States cattle industry alone could exceed $300 million a year. The cattle market outside the U.S. could more than double those projections, XY Inc. officials believe
      For more information, call XY Inc. at (970) 491-4764.