2006 Annual Report 4d.Progress report. This report serves to document research conducted under a non-funded cooperative agreement between ARS and Okanangan Biotechnology, Inc. Additional details of this research can be found in the report for the parent project, 1931-21000-011-00D, Genetic Improvement of Fruit Crops. The improvement of peach through genetic engineering has been hampered by the difficulty of transferring genes into peach and regenerating "transformed" or "genetically engineered" plants. The objective of this project is to develop a system for reliable efficient transformation of peach and to develop "consumer friendly" genetic constructs for genetic engineering. Over 7,000 peach explants have been exposed to various experimental conditions for genetic engineering. Several GE peach plants have been produced. The rate of transformation remains low and additional treatments and peach varieties have been included in current experiments.