The Iowa Values Fund (IVF) announced today an award of $5 million to Phytodyne, Inc. IVF funds will be used by Phytodyne to expand its R&D infrastructure at the Company's facility in Ames, Iowa.

"Phytodyne was founded in 2000 based on discoveries from Iowa State University's Plant Sciences Institute," said Governor Tom Vilsack. "The Company has developed groundbreaking proprietary technologies for biotech crop improvement. These powerful technology platforms will revolutionize the design, development, and commercialization of high-value biotech crops. Our investment in Phytodyne will pay significant dividends to Iowa."

IVF funds will be used to expand laboratory space and build greenhouses to support the development of Phytodyne's gene targeting system, Genome Editor(TM).

Genome Editor is based on gene targeting by homologous recombination, a naturally occurring process that can be harnessed to precisely substitute one DNA segment for another within a cell. Genome Editor can delete, add, or modify any gene with surgical precision in many commercial crops. It can be used to modify multiple genes that work together to confer complex traits such as improved nutrition and better oil profiles. Genome Editor can eliminate unwanted characteristics from grain such as allergens and anti-nutrients. Grain composition can also be improved to enhance processing qualities.

With crop producers in mind, scientists will use Genome Editor to improve multi-gene traits to develop crops with resistance to disease and insects and tolerance to tough growing conditions such as heat, drought, and salty soils.

Phytodyne has recently gained a major breakthrough in plant biotechnology by demonstrating Genome Editor's ability to modify plant genes with extraordinary efficiency.

"Although gene targeting is a natural process, it happens only rarely," said Dr. Dan Voytas, Phytodyne's CEO and co-founder. "Our technologies make gene targeting up to a million times more efficient. Compared to existing methods for genetically modifying plants, our technology is more accurate, more efficient, more predictable, and more effective."

Phytodyne's Genome Editor is enabled by the use of engineered zinc finger DNA binding proteins (ZFPs). Sangamo BioSciences, Inc., the worldwide leader in the research and development of engineered ZFPs, is collaborating with Phytodyne to evaluate commercial applications of ZFP technology in plant agriculture.

"I want to thank the Iowa Values Fund and Governor Vilsack for the support they are providing Phytodyne in the development of our breakthrough technologies here in Iowa," said Jon Leafstedt, Phytodyne's president. "Iowa's return on its investment in Phytodyne will come in many forms; more and higher wage jobs in Iowa; more efficient use of land and natural resources; fewer negative impacts of agriculture on the environment; expansion of markets for Iowa's agricultural products; development of new Iowa-based biotechnology firms; renewed vitality in Iowa's rural economy; and ultimately, increased wealth for its citizens."

Phytodyne, Inc. is a biotechnology company with advanced methods and significant expertise in the precision engineering of plant genomes. The Company will employ its technologies to develop proprietary traits and crops for licensing to seed companies and the agricultural industry. Phytodyne will provide contract research services for seed companies and plant biotechnology firms and out-license its technologies to companies for their in-house use. The speed, accuracy, and flexibility of Phytodyne technologies, along with strong intellectual property positions, will accelerate product launch and reduce development costs while making possible valuable new traits and products. Phytodyne is currently collaborating with BASF Plant Sciences for development of novel soybean varieties.