Merial Company Overview l Established in 1997 l

Merial Company Overview l Established in 1997 l 17 Research and Development Centers l 16 Manufacturing Sites l Sales Presence in 150 Countries l 5, 000 Employees Worldwide l Merial Ltd. is a joint venture between Merck & Co. , Inc. and sanofi-aventis.

The Brand

IGENITY Products ® l IGENITY Double. BLACK™ l IGENITY Tender. GENE™ l IGENITY Opti. GRID™ l IGENITY Parent. MATCH™ Multi. SIRE IGENITY Multi. MARK™

IGENITY Double. BLACK An accurate, inexpensive coat-color test: l l Determines if an animal is homozygous black A homozygous black bull can be worth as much as $800 more over his lifetime versus a heterozygous black bull when mated to red cows.

IGENITY Opti. GRID l A multiple marker analysis l Relationship to Carcass Traits (1663 head) – – l Yield Grade - 1. 1 Fat Thickness -. 23 in. Marker-Assisted Hot Carcass Weight - 86 lb. Management Ribeye Area – 2. 0 sq. in. Each trait is scored 1 to 10

The New… IGENITY Tender. GENE

IGENITY Tender. GENE Three SNPs: • CAPN 316: Developed by U. S. Meat Animal Research Center (MARC). First released in 2003 • CAPN 4751: Developed by MARC. Released in 2005 • Uo. G-CAST 1: Developed by University of Guelph (Ontario, Canada). Released in 2005.

Calpastatin and Calpain Both Are Important l Calpain: Enzyme that weakens muscle fibers during the post-mortem aging process. l Calpastatin: Enzyme that regulates the activity of Calpain. Markers WBSF Pct. of Total CAPN 316 and CAPN 4751 -1. 44 lb 63% Uo. GCAST -0. 83 lb 37% Total -2. 27 lb Source: NBCEC, 2005

IGENITY Tender. GENE Scores Genotypes in the shaded areas are rare. The assigned score is based on the best estimate of the tenderness value of this genotype given the information available today. The score for this genotype is subject to change as more information is obtained.

Scores 1 to 5 = 59% Percent of Population Scores 6 to 10 = 41%

Percent > 11 Pounds WBSF Percent > 11 lb When Population average = 9 lb More Tender IGENITY Tender. GENE Score Data derived from NBCEC Nov. 2005 N=1209

IGENITY Tender. GENE Allele Frequencies by Breed Uo. G CAST 1 (%) CALP 316 (%) CALP 4751 (%) Breed No. C G C T Char. X Ang. 339 79 21 23 77 46 54 Red Angus 307 74 26 23 77 47 53 Brangus 219 79 21 18 82 55 45 Brahman 344 43 57 1 99 8 92 Data derived from NBCEC Validation, Nov. 2005

Leading geneticists announce “full confidence” in DNA testing for tenderness traits – and they say it’s high time free enterprise runs with the science.

Jim Reecy, Iowa State University

MA-EPDs in the Headlines Drovers Jan. 2005 BEEF Dec. 2004

Marker Assisted EPDs • Improved accuracy for young sires • Spreads out the sires • Lower cost of genetic evaluation for traits difficult and/or costly to measure • Other traits will follow CW YG Marb BF REA Shear acc acc acc -8. 4 -0. 02 0. 92 . 18 0. 92 0. 00 0. 92 0. 01 0. 92 -0. 36 0. 50 Spring 2005 ASA Sire Summary

IGENITY Parent. MATCH • Parental Validation • Sire Determination

IGENITY Parent. MATCH Parental Verification – Verify sire and/or dam as per breeder records. l l l Usually to fulfill breed association requirements. Listed parent either qualifies or is excluded. American Simmental and American Shorthorn Associations use a panel of 14 micro-satellite markers.

IGENITY Parent. MATCH l Sire Determination – Multi-sire testing “Most likely sire” based on screening potential sires and selecting the sire that has the most genes in common with each calf.

Why IGENITY Multi. MARK Large SNP panel Advantages: • All tests run up-front on all animals • Pay for what you want. • Higher throughput in the lab = lower lab costs= lower test costs. • Expandable

Parentage Diagnostic Tests

IGENITY Multi. MARK IGENITY Parent. MATCH IGENITY Opti. GRID IGENITY Tender. GENE IGENITY Double. BLACK

IGENITY Multi. MARK Number of SNPs will grow.

Using IGENITY l Multiple test results from one sample for reasonable price. l Simple l Meaningful l “Friendly” Reports l Value (ROI) l Part of a system l Focus on traits that are difficult and/or expensive to measure with significant economic relevance

Marker / Product Validation l Independent party l Who? NBCEC? l l l What about traits with limited phenotypes? Will NBCEC accept data from the companies for validation/verification? FDA Model? BIF’s role?

How should results be reported? l Genotypes? l Stars? l Score? There is a better way.

Marker-Assisted EPDs from Genomic Data l l l Develop the methodology Standardized validation to generate “adjustment factors” Standardized SNP nomenclature for genomic data Standardized data transfer template Producer authorization to transfer data to association Breed association database acceptance

Two ways to order test kits: l Online: www. igenity. com l Phone: 877 -443 -6489 Get test results: l Online: www. igenity. com l Email l Fax l US Mail