Biogenetic S.A., a joint venture between Fundacion Chile (Santiago, Chile) and InterLink Associates Inc., (Princeton, NJ) announced today the creation of a new venture for the development of improved forestry species using the tools of biotechnology. GenFor S.A., a joint venture with Silvagen Inc. (Vancouver, BC), will provide the forestry industry in Chile and Latin America with a comprehensive array of technologies for genetic improvement.

With an initial investment of $5 million partially supported by the Chilean development agency Corfo, GenFor is in a position to develop products and services such as: clonal development programs on a commercial scale using Silvagen's proprietary technology of somatic embryogenesis, consulting services in genetic improvement including molecular markers programs, management of genetic resources and access to genetic engineering technologies for the development of transgenic radiata pine with improved production and wood quality characteristics.

Silvagen has already established a successful program using its proprietary somatic embryogenesis technology with the Chilean forestry company Bioforest, a subsidiary of Forestal Arauco. A significant number of clonal lines will undergo field testing starting next year. Negotiations for collaborations with other Chilean forestry groups, will be carried out by GenFor.

GenFor plans to actively pursue its research and development activities for the development of
improved radiata pine using the tools of biotechnology. The first field test of transgenic radiata pine in Chile will be established shortly. GenFor is presently developing in cooperation with the Forest Research Institute of New Zealand and other research groups and biotechnology providers transgenic pines resistant to the European shoot moth, an insect pest of great economic importance for the Chilean forestry industry. This new product will have a significant economic impact in the sector as well as a significant reduction in the use of chemical insecticides that are presently used to control the pest. The first transgenic pine trees resistant to the European shoot moth will be tested in the year 2000.

Other projects involving genetic engineering of radiata pine being carried on by GenFor include
resistance to fungal diseases, manipulation of cellulose and lignin content and other wood quality
characteristics.

Fundacion Chile, based in Santiago, Chile is the most important Chilean organization involved in
technology transfer and technology development. Fundacion Chile is involved in the development of innovative business and projects by transferring technologies for the better utilization of Chile's natural resources and productive capabilities. Fundacion Chile's activities involve providing technology services, processes and product improvement, project evaluation, training and extension services.

Silvagen Inc. based in Vancouver, BC Canada is a world leader in development and
commercialization of embryogenesis, genetic engineering, and development of programs of genetic improvement in forestry. The company is commercializing patented, proprietary somatic
embryogenesis and related technologies which permit large volume production of commercial tree
seeds and seedling with selected superior traits such as pest and disease resistance, faster growth, more fibre and better quality wood.

InterLink Associates Inc., based in Princeton, New Jersey and with research laboratories in Auburn CA, is a unique biotechnology research and technology transfer company with a core focus on the use of microbial diversity to provide leads for new drugs, antimicrobials, enzymes, and various genes for crop improvement. The company specializes in helping its clients to identify new commercial opportunities for biotechnology and provides cost-effective solutions to applied problems.

Contact: 
InterLink Associates, Inc., Princeton
Dr. Michael R. Moynihan, 609/252-0446
mrmoynihan@compuserve.com

Company news release
N1989