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GENETICS INSTITUTE TO SELL ITS RHODE ISLAND MANUFACTURING INTEREST

 GENETICS INSTITUTE TO SELL ITS RHODE ISLAND MANUFACTURING INTEREST
 CAMBRIDGE, Mass., Sept. 28 /PRNewswire/ -- Genetics Institute, Inc. (NASDAQ: GENIZ) announced today that it is selling its minority interest in WelGen, a large-scale Rhode Island manufacturing partnership, to the majority partner, BW Manufacturing Inc., a wholly-owned subsidiary of Burroughs Wellcome Co. Genetics Institute will receive approximately $24 million in proceeds and incur a loss of just under $2 million in the transaction. The $24 million will be reinvested in the company's recently announced $55 million facility expansion project in Andover, Mass. The closing of the sale, which is subject to customary conditions, is expected to take place in early October.
 "We are currently operating an $85 million commercial-scale manufacturing and product development facility in Andover, which will continue to support our near-term manufacturing requirements," said Garen Bohlin, executive vice president of Genetics Institute. "At one time, WelGen provided us with flexibility for rapidly expanding manufacturing capacity. However, with our sizeable and highly productive operation in Andover, it now makes more sense to build future manufacturing capacity in Massachusetts than to establish separate operations in another state," Bohlin added.
 "We are pleased that Genetics Institute has taken yet another major step in endorsing Massachusetts as a place to grow," said Massachusetts Secretary of Economic Affairs Stephen P. Tocco. "Genetics Institute's choice of Massachusetts as the site to consolidate its manufacturing operations sends a clear signal of the opportunities for prosperity here."
 Genetics Institute's 210,000 square foot manufacturing and product development facility in Andover has been in operation since 1988. It was designed to manufacture several biopharmaceutical products simultaneously in four separate, self-contained manufacturing suites. It currently employs over 350 people, approximately half of the company's employees. Genetics Institute's 700-plus total employee base makes it the largest biotechnology company employer in Massachusetts.
 Sale of its WelGen interest is another in a series of recent facilities decisions that demonstrate Genetics Institute's commitment to expand and build in Massachusetts. In mid-September, the Company announced plans for a $55 million expansion project at its Andover site that includes a 113,000 square foot preclinical research and development building and a 42,500 square foot central energy plant. In August, Genetics Institute announced that it had purchased an additional 43,000 square foot research facility in Cambridge, Mass. to supplement its existing 145,000 square foot headquarters and discovery research complex in Cambridge.
 Genetics Institute (NASDAQ: GENIZ) is a leading biopharmaceutical firm engaged in the discovery and development of human pharmaceuticals through recombinant DNA and other technologies. The company is developing three human pharmaceuticals which it hopes to commercialize in the U.S. in the mid-1990's. These products are now being tested for their potential use in treating serious bone fractures, cancer, the side effects of chemotherapy and infectious disease. The company's early product discoveries are being developed and commercialized by marketing partners. Recormon and Epogin brands of EPO are on the market in Europe and Japan. Leucomax brand GM-CSF was recommended for approval earlier this month in the European Community and awaits U.S. marketing approval. Recombinate brand Factor VIII antihemophilic factor awaits marketing approvals in the United States and Europe.
 -0- 9/28/92
 /CONTACT: Melinda Lindquist or Gina Price of Genetics Institute, Inc., (617) 876-1170; or Kathy Bartlett of Burroughs Wellcome Co., (919) 248-4302/
 (GENIZ) CO: Genetics Institute, Inc.; Burroughs Wellcome, Co. ST: Massachusetts, South Carolina IN: MTC SU: JVN


CH -- NE003 -- 3820 09/28/92 08:28 EDT
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Date:Sep 28, 1992
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