Genesis Bioventures Inc announced that the US government has approved appropriations for the United States Department of Agriculture (USDA) to evaluate new rapid tests for detection of prion-infected animals, including the lateral flow strip test for Mad Cow Disease developed by one of GBI's investee companies, Prion Developmental Laboratories Inc (PDL).

The PDL strip test is an easy-to-use, patents pending rapid strip test for detecting Bovine Spongiform Encephalopathy (BSE), more commonly known as Mad Cow Disease. It is similar to a home pregnancy test and will be used on-site using brain tissue taking less than twenty minutes to complete with accurate, easily interpreted results. To date, there are no rapid tests that can be performed at the slaughterhouse that will ensure that BSE infected cattle do not enter the human food chain.

PDL and its sister company, Virotek, LLC, have developed and are testing a unique device for the production of the tissue homogenate used in the diagnostic test. The device will enable the user to prepare the sample without additional equipment and provides a greater degree of protection from the potentially contaminated tissue. The device will facilitate movement of the test from centralized reference laboratories to sites in or near the meat processing facility.

In February 2002, the USDA reported that it would be testing twice as many cattle for BSE than were tested last year, including deceased cattle from farms. The target for the entire year is 12,500 compared to 5,200 last year.

The Senate Appropriations Committee recently passed a bill to provide funding for the USDA to research lateral flow strip technology for BSE and BSE related diseases. The Committee has directed the USDA to undertake a review of the PDL testing technology. Upon satisfactory completion of the review, the USDA will move forward with a pilot program using this technology.

Researchers at PDL recently identified a new pair of antibodies for the detection of prions that appears to be more sensitive than the pair currently in use. PDL believes that these antibodies will be superior to the original antibody pair and initial research indicates that they will also work in tests for scrapie, Creutzfeldt-Jakob disease (CJD) and Chronic Wasting disease (CWD). Scrapie is a common prion disease found in sheep while CJD is a human form of prion disease. CWD, although present for decades, has recently made headlines as deer and elk are being infected at an alarming rate across North America.

In the past six months, 24 white tail deer have tested positive for CWD in the state of Wisconsin. Surveys show that up to one third of the state's hunters plan not to hunt this season and of those that do, many will not consume the deer that they kill. Approximately 500,000 white tail deer will be killed this hunting season in Wisconsin alone, while approximately 40 million head of cattle are slaughtered every year in the entire United States.

GBI is currently in late stage discussions with PDL to provide additional funding for the prion disease research. Further funding would result in GBI obtaining a controlling equity interest in PDL.

Both companies are pleased to have the USDA evaluating the strip test. David Grosky, President of PDL and Greg McCartney, GBI Chairman stated, "We are confident that the review will result in a pilot program that will bring assurance to consumers that the meat they are eating is safe."