BITeomics to Collaborate with Diversa on the Development of the Chinese Oil and Gas Market for New Enzyme-Based Technologies
SAN DIEGO and DALIAN, China, April 25--In connection with the DNA Day Conference currently being held in Dalian , China, Diversa Corporation (Nasdaq: DVSA - News) today announced that it is collaborating with BITeomics, a Dalian-based biotechnology company, to identify and assess opportunities for Diversa's novel enzyme products within the Chinese oil and gas industry. One of the potential opportunities being explored by the two companies is the utilization of Diversa's heat tolerant Pyrolase(TM) enzymes for hydraulic fracturing of oil and gas wells.
Given tight energy supplies and increasing world-wide demand, well fracturing has become an important technology for increased recovery of oil and gas. Once formations are fractured, controlled breaking of the fluid within the well is necessary to maximize the recovery of the trapped oil or gas. Environmentally friendly enzyme breakers can significantly increase the yield from many types of oil and gas wells. Less efficient chemical breakers are predominantly used in current Chinese oil and gas production. Diversa's Pyrolase(TM) enzymes have broad activity profiles and have demonstrated exceptional commercial performance at high temperature and in highly alkaline conditions. Accordingly, Pyrolase(TM) enzymes are particularly well suited for use in many types of oil and gas wells found in China.
"We see this new relationship with BITeomics as a first step for Diversa in China. China's 2006 five-year plan explicitly calls for increased use of secondary and tertiary recovery of oil and gas, which fits well with the capabilities of our existing portfolio of Pyrolase(TM) enzymes," stated William H. Baum, Diversa's Executive Vice President, Bioscience Products. "Together with BITeomics, we hope to develop a robust market for Pyrolase(TM) enzymes in the oil and gas industry in China," continued Mr. Baum. "Cooperation with Diversa will facilitate cost-effective solutions for the Chinese energy market," said Dr. Xiaodan Mei, Chief Executive Officer of BITeomics. "The collaboration will leverage each partner's strength: Diversa's proven enzyme technologies and BITeomics' knowledge of the local market and skilled biotechnologists."
BITeomics, known also by its full name Bio Integration Technology, Inc., integrates current frontier scientific and technological achievements through both universities and research institutes to create new intellectual property and bring to market innovations that speed the development of life science products and provide better solutions for healthier living. BITeomics will realize its mission by introducing new chemistries from natural resources to fill the current chemistry vacuum using less capital and human resources; Capitalizing on technologies and knowledge enabled by the revolution in Biology; and creating a knowledge-sharing and knowledge-driven culture and environment. BITeomics also provides market research for bioscience companies interested in developing markets in China for advanced technology products. Additional information is available at BITeomics' website: www.biteomics.com .
Diversa Corporation is a leader in applying proprietary genomic technologies for the rapid discovery and optimization of novel protein-based products. The Company is directing its integrated portfolio of technologies to the discovery, evolution, and production of commercially valuable molecules with agricultural, chemical, industrial, and pharmaceutical applications. Diversa has established alliances and joint ventures with market leaders, such as Bayer Animal Health, Cargill Health and Food Technologies, DuPont Bio-Based Materials, GlaxoSmithKline, Medarex, Merck, and Xoma. In addition, the Company has formed a broad strategic relationship with Syngenta AG, a world-leading agribusiness company.
Diversa has commercialized products both independently and in collaboration with strategic partners and licensees. Additional information is available at Diversa's website: www.diversa.com .
Statements in this press release that are not strictly historical are "forward-looking" and involve a high degree of risk and uncertainty. These include statements related to the identification and assessment of opportunities for Diversa's enzyme products in the Chinese oil and gas industry, the potential utility of Diversa's enzymes in recovery of oil and gas in well fracturing and the development of the Chinese market for Pyrolase enzymes in collaboration with BITeomics, all of which are prospective.
Such statements are only predictions, and the actual events or results may differ materially from those projected in such forward-looking statements. Factors that could cause or contribute to differences include, but are not limited to, risks involved with Diversa's new and uncertain technologies, Diversa's dependence on patents and proprietary rights, Diversa's protection and enforcement of its patents and proprietary rights, Diversa's dependence on BITeomics in connection with this collaboration, whether the collaboration will result in cost-effective alternatives to chemical breakers currently used in Chinese oil and gas production, market adoption of Diversa's enzymes in the Chinese oil and gas industry and the development or availability of competitive products or technologies.
Certain of these factors and others are more fully described in Diversa's filings with the Securities and Exchange Commission, including, but not limited to, Diversa's Annual Report on Form 10-K for the year ended December 31, 2004. These forward-looking statements speak only as of the date hereof. Diversa expressly disclaims any intent or obligation to update these forward-looking statements.