July 2003

Contact:
XY-Mexico
Tel. # : (871) 736 12 35

XY-MEXICO, THE FIRST COMPANY IN MEXICO TO PRODUCE SEXED CATTLE SPERM

TORREON, Mexico—North American-based company, XY Inc. has joined with Mexican cattle breeders to form XY-Mexico, S.A. de C.V. the first such company of its kind in Mexico.

XY-Mexico, located in Torreon, has the right to produce and sell sexed sperm throughout Mexico. Sexed sperm is derived from semen that has been sorted to carry either female-producing X chromosomes or male-producing Y chromosomes. The sorting procedure does not involve genetic modification in any way – it merely sorts the male- and female-producing sperm to help produce a calf of the desired sex.

During field trials involving thousands of pregnancies that have resulted in healthy calves, XY Inc. and its research partners in the United States, Germany, Japan, Argentina, Australia, Poland, Italy and other countries routinely secure a success rate above 90 percent in achieving the desired sex of a calf.

XY-Mexico plans to collaborate with Mexican dairy cooperatives and cattle breeders, said Dr. Victoria Maroun, a veterinarian, who will serve as general manager and key scientist of XY-Mexico. She also is a principal partner in XY-Mexico along with Juan Jose Fernandez Garcia, a cattle breeder.chief.

Traditionally, dairy-industry breeders want three outcomes from a pregnancy: Female calves for herd replacements, milk production and trouble-free heifer calvings.

Dr. Maroun, noted: "The use of sexed sperm in the dairy industry is positive for several reasons: Female calves are smaller than male calves at birth, which makes first-time calving easier for a two-year-old heifer approaching delivery of her first calf; and the technology facilitates herd replacement and genetic improvement."

The sperm-sorting technology could have a positive impact on Mexico’s cattle industry, which according to a 1991 census boasts almost 25 million head of cattle nationwide, Dr. Maroun added.

Stated Dr. Jacobson, executive officer and president of XY Inc., "Commercialization of sperm sexing is revolutionizing cattle herd management by improving breeding efficiency and herd quality, and it also provides strong animal-welfare benefits."

XY Inc. is the only company in the world licensed to pursue sperm sorting in non-human mammals – such as cattle, horses, pigs and exotic species. The technology is based on inventions made by the United States Department of Agriculture, Colorado State University, Cytomation and XY Inc.’s research team. Over the last several years, tens of thousands of dairy cattle have been born worldwide, using sexed-sperm and artificial-insemination techniques.

Using a high-speed cell-sorting machine called a MoFlo, XY-Mexico can separate sperm bearing the X- or Y chromosome or both. High concentrations of the selected sperm then are used to fertilize female animals.

"Until now, if farmers wanted to replace 30 percent of their herd each year, then 60 percent of the cows had to be pregnant for the sole purpose of replacing and updating the herd quality. That was a very inefficient system," said Dr. Jacobson.

"This all will change," Jacobson added. "Breeders will be able to decide which cows will provide the replacement female calves and which will provide the male beef crosses. Using artificial insemination and sorted sperm together, every pregnancy can be a valued pregnancy."