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With the invention of high throughput methods, researchers are capable of producing large amounts of biological data. During the analysis of such data the need of a functional grouping of genes arises. We propose a new clustering algorithm for the partition of genes or gene products according to their known biological function based on Gene Ontology terms. Ontologies offer a mechanism to capture knowledge in a shareable form that is also processable by computers. Our functional cluster algorithm promises to automatize, speed up and therefore improve biological data analysis.