June 20, 2000

Contact:
Dr. Mervyn Jacobson
CEO/President, XY Inc.
(970) 491-4764

XY Inc. SIGNS AGREEMENT WITH ARGENTINIAN CATTLE-BREEDING COMPANY

FORT COLLINS, COLO.--XY Inc. has signed an agreement with Goyaike S.A., a leading cattle-breeding company in Argentina, that will-for the first time--bring XY Inc.'s sperm-sorting research for dairy cattle to South America.
      Goyaike (pronounced Goy-czhek-ee) is the lead investor in XY Inc.'s third round of funding. XY Inc. expects to secure a total of $6 million from several investors, including Goyaike, when round three funding closes in the coming months.
      As part of the agreement, Goyaike entered into a research collaboration with XY Inc., secured future rights to commercialize XY Inc.'s technology in Argentina in the coming years and will provide a director to XY Inc.'s board of directors.
      XY Inc. is the world leader in the research, development and commercialization of techniques to select the sex of non-human mammals-such as horses, cattle, pigs and exotic species--before the animal even is conceived.
     " Goyaike understands the important role sperm sorting can play in boosting the quality of dairy-cattle herds and in reducing unnecessary slaughter of animals," said Dr. Mervyn Jacobson, XY Inc. CEO and president. "The agreement with Goyaike falls nicely in line with XY Inc.'s strategy to make sperm-sorting techniques available worldwide."
      XY Inc.'s research to pre-select the sex of animals is important: Dairy farmers prefer females, beef-cattle breeders prefer males, polo-pony owners want females and most performance horses-such as jumpers-are males.
     " We know about 10 million male dairy calves born each year are slaughtered at birth," Jacobson said. "The waste from unwanted sexes in animal-breeding industries is enormous."
     " Formed in mid-1996, XY Inc.'s initial mission was to offer gender selection to the United States dairy industry by way of sorting sperm with a flow cytometer into "X" and "Y" bearing populations, as an enhancement to artificial insemination.
      Today, XY Inc. has expanded its mission and now is the global leader in the research, development and commercialization of sex selection for all relevant non-human mammals. XY Inc. is the master licensee in control of all sperm sorting in non-human mammals worldwide using technologies developed by U.S. Department of Agriculture, Colorado State University and Cytomation, a company that develops advanced flow cytometers.
      XY Inc.'s successes are many: XY Inc. scientists produced "Call Me Madam," the world's first sex-selected foal in 1998, the world's first sex-selected calf using frozen sexed semen and artificial insemination in 1999 and the world's first sex-selected foals using sexed semen and artificial insemination in 1999.
     " This year, XY Inc. expects to announce more breeding successes, to generate first income from its commercialization strategies and also to offer its know-how internationally to assist endangered species," Jacobson noted.
     " For more information on XY Inc. visit www.xyinc.com or call 970-491-4764.