While Umbrella's Paris branch researched into the intelligence aspect of the NE-α, the Arklay Laboratory in the United States investigated the combat-effectiveness of parasite-enhanced B.O.W.'s. The highly-intelligent parasite was developed with the capability of taking control over its host by fusing with its brain. A major problem occurred in the process, however - all hosts died within five minutes of coupling. All, that is, until the Arklay team's experiment.
Albert Wesker and William Birkin - the head researchers at the Arklay facility - introduced their parasite specimen to their long-term guinea pig Lisa Trevor. Lisa, who had been exposed to multiple viral strains over the years she was held in captivity, appeared to have accepted the NE-α when it was implanted. However, it turned out that Lisa's already heavily mutated body had actually consumed the parasite completely. This was merely a minor setback for Umbrella as they were able to collect new data to further advance their research and the experiment bore unexpected fruit in the form of a new viral strain: the G-virus.
In the summer of 1998, the Arklay Laboratory was contaminated by a T-virus outbreak. The Raccoon City Police sent in their Special Tactics & Rescue Service to investigate the incident, but Wesker had arranged for the S.T.A.R.S. to fall prey to the B.O.W.'s that were roaming around freely within the facility, all so that he could collect necessary combat data that would further advance the Nemesis Project. While the S.T.A.R.S. managed to kill the Tyrant T-002 and escape with their lives, Umbrella had gained all the information they needed to complete the project. Shortly afterwards, an NE-α parasite was implanted into the body of a T-103, thus creating a whole new breed of bio-weapon: the Nemesis T-Type.