1. Introducing GeneSTAR ® MVP Molecular Value Predictions for Beef Quality and Production Traits

2. 2 Welcome! A new DNA era for GeneSTAR ® Review of technical background and materials Customer applications Customer report Value discussion

3. 3 What is GeneSTAR? Pfizer Animal Genetics DNA-testing platform for economically important traits Feed efficiency, marbling and tenderness Facilitates genetic improvement in seedstock and cow- calf operations Enables precision management in cow-calf, stocker and feedlot operations

4. 4 Evolution of GeneSTAR

5. 5 Molecular Value Predictions (MVPs) Are: Molecular breeding values, in units of the trait, that incorporate the sum total of marker effects, and have an associated reliability value Based currently on a panel of 56 DNA markers that are used to predict feed efficiency, marbling, and tenderness in beef cattle

6. 6 Traits – Measures Feed efficiencynet feed intake MarblingDegree of marbling TendernessWarner-Bratzler shear force (WBSF) at 14 days postmortem

7. 7 MVP Advantages Quantifies animals ability to perform Measured in relevant units for each trait on a single scale Accounts for relative size of marker effects Reliability of MVP provided Compatible with EPD Applicable for multi-trait selection

8. 8 GeneSTAR MVP Development Intensive four-step process: 1.Marker discovery 2.Development of marker predictions – MVPs 3.Internal validation of relationship between MVPs and phenotypic performance 4.Third-party validation

9. 9 MVP Populations In the first three steps, Pfizer Animal Genetics employed the use of: 13 cattle populations More than 7,000 animals representing diverse breeds and composite lines Range of environmental and management conditions 2,866 animals in the discovery and prediction phase 4,455 animals in the internal validation phase Included both Australian and North American populations

10. 10 MVP Populations

11. 11 MVPs – Selection Opportunity

12. 12 MVP Reliability Standard for assessing accuracy and predictive power of the MVP for a trait Based on correlation (R) between the MVP and the animals genetic breeding value if all information were known Expressed as a percentage of the maximum accuracy attainable Indicates how much information may be added in the future as greater numbers of markers are added to the panels used to calculate the MVP

13. 13 MVPs – Selection Opportunity

14. 14 MVPs – Third-party Validation Designed to confirm the statistical significance of relationships between MVPs and performance

15. 15 MVPs – External Validation

16. 16 Meta-Analysis Combined statistical results into outcome groups by geographic location and cattle subpopulations

17. 17 Validation Conclusions Validation for tenderness across all populations and markets Validation of feed efficiency in U.S. and Australia in Bos Taurus Feed efficiency for Bos Indicus in Australia Significant association in NBCEC validations with % IMF estimated by ultrasound scanning 60 days prior to harvest Significant association documented in U.S. Bos Indicus with % Choice

18. 18 MVPs – Reporting Format MVP expressed on a +/- scale from 0, where 0 = average of all animals in our research database Reliability based on individual genotype and marker effects

19. 19 MVPs – Reporting Format

20. 20 MVPs – Reporting Format

21. 21 MVPs – Selection Example Potential Sires Sire A: FE= -0.73 lbs Marb = 0.4 Sire B: FE= +0.60 lbs Marb = 0.3 Sire C: FE=-0.20 lbs Marb = -0.4 The genetic merit of sires for average daily gain was assumed equivalent

22. 22 Decision Tree: DNA Test or Dont DNA Test! $69,595 $68,977 $64,344 $66,962 $69,595 MVP Selection Example – Test or Not?

23. 23 Best decision is to test with MVPs: Difference = $2,633 MVPs enable superior decisions in choosing sires based on feed intake, marbling potential and tenderness Best economic decision avoids uncertainty and chooses Sire A instead of making an uninformed decision MVP Selection Example – Test or Not?

24. 24 Stars to MVPs 11 individual markers56-marker panel Number of STARSTrait units for greater selection opportunity Number of favorable allelesCollective effects of markers contribute to trait prediction Equal effects of each markerAccounts for varying individual marker effects No calculated reliability% reliability described: 26 – 49% Good selection toolA new era in genetic improvement

25. 25 Bottom Line Valuable Selection Tool More markers, more reliability. More Powerful Tool!

26. Next Step – Mating Schemes Planned mating tool in development Predicts genetic outcomes based on MVP analysis of potential sire matings Interactive tool available late 2009

27. Quantitative Genetics New Reduced Animal Model Unknown genes Phenotypicdata Breeding Value for unknown and known polygenes for unknown and known polygenes EPDs including DNA marker information DNA Marker info Genetic effects Feed Efficiency EPD -1.9.45 acc.

28. 28 Literature

29. 29 New Web Site Resource center for genomic technology Interactive sales map Webinars and presentations Public results section (coming soon!)

30. 30 New Location Lab operations and customer service team now located in Kalamazoo, Michigan Based within Pfizer Animal Health Research and Development headquarters New contact information: 333 Portage Road Kalamazoo, MI 49007-4931 877-BEEF DNA Customer Service: 269-833-4629 Fax: 269-833-4711 www.pfizeranimalgenetics.com

31. 31 Conclusions The time is now to enter the new era in precision management with DNA-marker technology. Pfizer Animal Genetics portfolio of testing includes: GeneSTAR MVPs SireTRACE ® SureTRAK ® GeneSTAR Elite Tender ® Arthrogryposis Multiplex testing

32. Contact your Pfizer Animal Genetics representative, call 1-877-BEEF DNA or go to www.pfizeranimalgenetics.com to order your test kit today. www.pfizeranimalgenetics.com