Tuesday, Apr 13, 1982

Corning Glass, Genentech to Form Industrial Enzyme Company

Corning, New York -- April 13, 1982 --

Corning Glass Works and Genentech, Inc. announced today that their Boards have approved an agreement to form an industrial enzyme company. The new company, Genencor, Inc. (pronounced Ja-NEN-cor), will combine genetic engineering and enzyme immobilization to produce enzymes for food processing and chemical industries.

In related announcement, Corning Board Chairman Amory Houghton, Jr. said today at the company's annual meeting that, as part of the growing relationship between the two companies, Corning plans to become an equity investor in Genentech. Houghton said Corning will purchase $20 million of newly-issued placement of 571,000 shares at $35.00 per share represents 6.5% of Genentech's outstanding common stock. Genentech said proceeds will be used for general corporate purposes including Genentech's contribution to the development of Genencor.

Houghton said, "the goal of the new company is to become a world leader in the development and production of enzymes for industrial applications using recombinant DNA technology".

The new company will sponsor significant new research and development activities at the laboratories of the parent companies. Genencor will develop, manufacture and sell industrial enzymes.

Corning's existing fermentation enzyme business, which was acquired from Rohm & Haas Company last year will be shifted into the new jointly owned company. Genencor, Inc. will build additional capacity for enzyme fermentation as needed.

Corning's existing fermentation enzyme business, which was acquired from Rohm & Haas Company last year will be shifted into the new jointly owned company. Genencor, Inc. will build additional capacity for enzyme fermentation as needed.

Initially, as Genencor's headquarters will be located in Corning, N.Y.

Genentech President, Robert A. Swanson, said, "We are enthusiastic about Genentech's progression into new industrial applications. Genencor will be a natural integration of technologies that will significantly increase our capabilities for developing process and product applications for the food processing and chemical industries."

Joseph C. Littleton, Corning Vice President and General Manager for Biotechnology, said, "This merger of patentable processes and scientific know-how will not only impact the existing large market for current enzyme products. . . it will also result in enzymes for entirely new applications."

Corning, a leading international producer of specialty glass and ceramics, has been active in biotechnology research and development since it began developing enzyme immobilization processes in the early 1960's.

In immobilization, enzymes are physically and chemically attached to inert carriers such as glass and ceramics. This technology allows enzymes to be used repeatedly in continuous processes rather than in batch processes where the enzymes are used once and then discarded. Immobilization results in significant cost savings to processors.

Corning's immobilized enzyme process for converting cheese whey into food ingredients is not part of the new company's charter. This particular process is in commercialization with The Kroger Company of Cincinnati, Ohio and the Milk Marketing Board of England and Wales.

Genentech, Inc. is a leader in the application of recombinant DNA technology (commonly referred to as genetic engineering) for pharmaceutical and agricultural industries. Last year, Genentech established a Biocatalysis Department to develop industrial applications for the technology. Industrial enzyme products developed by this research group will be commercialized by Genencor.

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