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ENBC : ENCHIRA BIOTECH CORP (NASDAQ)
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Enchira Biotechnology Corporation Receives Grant From U.S.
Department Of Energy for Gasoline Desulfurization Program
Funding for 3rd Year of 3-Year Program to Include Use of Gene Shuffling Technology for Enhanced Desulfurization
THE WOODLANDS, Texas, June 9 /PRNewswire/ -- Enchira Biotechnology Corporation (Nasdaq: ENBC),
formerly Energy BioSystems Corporation, announced today that it has received an official Notice of Financial Assistance Award from the U.S. Department of Energy (DOE) for the company to proceed with the third year of a three-year program to conduct research and development on the biodesulfurization (BDS) of gasoline feedstocks. Under the $900,000 grant, Enchira will use its proprietary gene shuffling technology to develop a biocatalyst for removing sulfur from gasoline.
Enchira successfully carried out the objectives of the first two years of the program, which were to develop analytical methods to rapidly identify sulfur compounds, develop host bacterial strains for gasoline BDS, develop a laboratory scale reactor system, and create models for assessing the technical and economic aspects of gasoline BDS. This third year will now lead to the development of an effective biocatalyst using gene shuffling to create prototype bacterial strains. The latest DOE grant will fund Enchira's BDS efforts through May 2001.
Enchira is using its RACHITT(TM) gene shuffling technology -- named for "random chimeragenesis on transient templates" -- to build extensive libraries of hybrid genes with diverse, targeted properties for commercial use. "We've successfully used our gene shuffling technique in our directed evolution program to combine the best properties of related desulfurization enzymes and generate superior strains," said Dr. Peter Policastro, President and CEO of Enchira. "We're pleased that the DOE has recognized our progress thus far on the gasoline program as evidenced by their granting of these additional funds. Our RACHITT(TM) gene shuffling technology will play a major role in accomplishing the remaining objectives of the program."
Worldwide concern over the burning of high sulfur fuels has led to increasingly stringent regulations regarding the level of sulfur acceptable in petroleum streams such as gasoline and diesel. The Clinton Administration proposed new rules on May 17th to eliminate 90 percent of the pollutants from the diesel exhaust of heavy trucks and passenger buses, beginning in 2006. These regulations would require petroleum refiners to cut 97 percent of the amount of sulfur now found in their diesel fuels.
Enchira is also expanding use of its RACHITT(TM) technology to pharmaceutical, agricultural, and industrial enzyme applications. On May 23rd, Enchira announced a strategic collaboration and licensing agreement with Genencor International, one of the world's leading industrial biotechnology companies. Under the agreement, Genencor will use Enchira's RACHITT(TM) technology to develop gene-based products for the cleaning, textiles, grain processing, animal feed, and food ingredients industries.
Reflecting its evolution into these broader biotechnology markets, Enchira's shareholders approved changing the company's name from Energy BioSystems Corporation to Enchira Biotechnology Corporation at yesterday's annual meeting in The Woodlands, Texas. "Using our RACHITT(TM) technology, our directed evolution expertise, and our newly developed high throughput screening techniques for this DOE BDS program fits well into our evolved focus into new markets, while also capitalizing on our years of experience and expertise in the biodesulfurization field," said Dr. Policastro.
Enchira Biotechnology Corporation is applying proprietary, directed evolution techniques to accelerate development and commercialization of gene-based products for the pharmaceutical, ag-bio, industrial enzyme, chemical, petroleum refining, and petrochemicals markets. Enchira's RACHITT(TM) technology is part of the company's directed evolution technology platform that rapidly creates hybrid genes that code for proteins with desired characteristics. Additional information about Enchira is available at the company's web site:
www.enchira.com.
This press release contains forward-looking statements that are subject to certain risks, uncertainties and assumptions, including but not limited to the Company's need for additional funds, the ability to raise sufficient funds on acceptable terms, the pending dispute with Maxygen relative to their allegations concerning confidentiality, the technical uncertainty and risks associated with commercialization of the Company's technology, the Company's
reliance on environmental regulations and the uncertainty of the adoption of any newly proposed regulations, the market acceptance of the Company's technology, the Company's dependence on collaboration partners, competition, and the ability to enforce and defend the Company's patents and proprietary technologies. Should one or more of such risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated in such forward-looking statements. For a discussion of such risks and assumptions, see "Risk Factors" included in the Company's annual report on Form 10-K for the year ended December 31, 1999.
SOURCE: Enchira Biotechnology Corporation
CONTACT: media, Brad Miles, ext. 17, or investors, Jonathan Fassberg, ext. 16, both of BMC Communications/Trout Group, 212-477-9007, for Enchira Biotechnology Corporation; or Paul G. Brown, III, Chief Financial Officer of Enchira
Biotechnology Corporation, 281-364-6140 |
