Exhibit 99.1
ENERGY BIOSYSTEMS SIGNS LICENSING AGREEMENT WITH
GENECOR FOR INDUSTRIAL ENZYME DEVELOPMENT
SIGNIFICANT AGREEMENT MARKS MAJOR VENTURE FOR COMPANY'S GENE SHUFFLING
TECHNOLOGY FOR INDUSTRIAL ENZYMES
THE WOODLANDS, Texas--(BUSINESS WIRE)--May 23, 2000-- Energy BioSystems
Corporation (Nasdaq:ENBC-news) announced today that it has entered into a
licensing agreement with Genencor International, one of the world's leading
industrial biotechnology companies, involving Energy BioSystem's proprietary
gene shuffling technology for "directed evolution." Under the agreement,
Genencor will use Energy BioSystem's proprietary RACHITT technology to develop
gene-based products for the cleaning, textiles, grain processing, animal feed,
and food ingredients industries.
Energy BioSystems is using its RACHITT gene shuffling technology - named for
"random chimeragenesis on transient templates" - to build extensive libraries of
hybrid genes with diverse, targeted properties for commercial use. "This
agreement represents a perfect fit for our unique gene shuffling technology and
Genencor's exacting enzyme production requirements," said Energy BioSystems
President and CEO Peter Policastro. "We're pleased that Genencor, a leader in
its field, recognizes the strength of our technology platform as a means of
producing superior products."
The significant licensing agreement represents the first in a series of expected
agreements with Genencor that will cover research and development as well as
possible expansion into additional licensing fields for agricultural and
biomaterials products. It includes three categories of payments: upfront
licensing fees, milestone payments, and product royalties.
Since 1993, Energy BioSystems has been a leader in applying molecular biology
and microbial processes to remove sulfur from petrochemical products for cleaner
reactions and lower costs. This new licensing agreement expands use of the
company's RACHITT technology into broader industrial applications. The company
is expanding use of the technology to pharmaceutical and agricultural
applications. Reflecting its evolution into these broader biotechnology markets,
Energy BioSystems has requested its shareholders to approve changing its name to
Enchira Biotechnology Corporation in early June.
Energy BioSystems' RACHITT technology is part of the company's directed
evolution technology platform that rapidly creates hybrid genes that code for
proteins with desired characteristics. New genes are created in a controlled
laboratory setting by combining genes or gene fragments to produce chimeric
genes that will direct the synthesis of these highly optimized proteins. Energy
BioSystems believes its RACHITT technology, coupled with its high throughput
screening capabilities, offers its partners substantial advantages over
competing technologies.
Genencor International is one of the largest biotechnology companies in the
world. It develops and markets gene-based products for use in the healthcare,
industrial chemical, and agricultural industries. The company has principle
corporate offices in Palo Alto, California; Rochester, New York, and Leiden, The
Netherlands. The company operates seven manufacturing sites in five countries
around the world.
Energy BioSystems Corporation (Nasdaq:ENBC-news), of The Woodlands, Texas, is a
biotechnology company that is applying proprietary, directed evolution
techniques to accelerate development and commercialization of biocataylst-based
processes for the pharmaceutical, ag-bio, industrial enzyme, chemical,
biodesulfurization, and petroleum refining and petrochemicals markets.
Additional information about Energy BioSystems is available at the company's web
site: www.energybiosystems.com
This document 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.
(Note to investors: a conference call has been set up for this announcement on
Tuesday, May 23rd. If you would like to call in for Q&A, please call
800/847-8127. Start time is 11:30 a.m. EDT and end time is scheduled for 12:30
p.m. In addition, "postview" is available from 1:30 p.m. the 23rd to 1:30 p.m.
the 24th. Call 800/633-8284, enter reservation No. 15317378, and enter passcode
N/A.)
Contact:
Energy BioSystems Corporation
Paul G. Brown III, 281/364-6140
or
BMC Communications/Trout Group
Brad Miles (for media inquiries)
Jonathan Fassberg (for investor inquiries)
212/477-9007