Woburn, MA (January 28, 2002) – U.S. Genomics and The Wellcome Trust Sanger Institute have entered into a collaboration to examine the use of U.S. Genomics’ direct, linear DNA analysis technology in research on the human genome. The partnership will study the use of this new technology to investigate human genetic data at a level of complexity, comprehensiveness, and accuracy not previously studied. The collaboration marks the first application of U.S. Genomics’ technology in an outside research setting.

Under the agreement, The Wellcome Trust Sanger Institute and U.S. Genomics will jointly employ their scientific expertise to conduct genetic research using the GeneEngine™ technology and other aspects of U.S.Genomics’ technology platform. The research collaboration will explore the application of U.S. Genomics’ technology to human genetic analysis at the highest level of detail and complexity. Financial terms of the agreement were not disclosed.

The Wellcome Trust Sanger Institute, one of the world’s premier genetic research centers, is a major contributor to the Human Genome Project and is sequencing one-third of the human genome. Dr. Ian Dunham, a senior researcher at The Sanger Institute and the project leader at the Institute, led the international consortium that successfully completed the first human chromosome, Chromosome 22.

“Despite the wealth of data we have already uncovered about Chromosome 22, in many ways the most interesting and far-reaching questions remain,” said Dr. Ian Dunham, Senior Research Fellow, The Sanger Centre. “The next stages include large-scale study of genetic variations. Many diseases have complex causes, and methods to analyze large regions of DNA and large numbers of samples are crucial in this work.”

“Our collaboration with Dr. Dunham and his colleagues at The Wellcome Trust Sanger Institute, a world leader in sequencing human and other genomic data, is a critical validation of our core technology,” said Eugene Chan, Chairman and CEO of U.S. Genomics. “With the availability now of vast data from the Human Genome Project, there is an enormous need for technologies capable of rapidly and accurately analyzing DNA. The promise of this partnership is its blend of world-class scientific expertise with a breakthrough technology platform for direct, linear readings of DNA.”

In the near term, The Sanger Institute and U.S. Genomics anticipate analyzing in greater detail the variation in genes on Chromosome 22. “The potential of this collaboration for genetic discovery is enormous,” continued Mr. Chan. “The GeneEngine™ sequencer’s ability comprehensively to characterize both individuals’ and groups’ genetic data as they relate to disease states can be expected to accelerate and expand exponentially the universe of drug targets. Beyond the humanitarian implications for human health, the commercial potential of such scientific discoveries is vast.”

U.S. Genomics’ GeneEngine™ platform, a revolutionary technology for extraordinarily fast and comprehensive genomic sequencing, reads genetic information in a completely different manner than is available through other technologies. Using direct, linear readings of extremely long, unbroken segments of DNA, it captures comprehensive genetic data at very high speeds, offering researchers a breakthrough technology to decode genomes, elucidate genetic variations, and enable pharmacogenomics, drug discovery, population genetics, and agbiotech applications.

The U.S. Genomics GeneEngine™ Technology
The GeneEngine™ sequencer enables researchers to uncurl and separate individual strands of DNA or RNA, which are then run through a nanotechnology sequencer in extremely long, unbroken, linear segments. The technique’s miniature DNA reader works somewhat analogously to a CD player, with uniquely tagged points on the DNA strand moving past a fixed point that reads and identifies the tags. The genetic information captured through such direct linear readings is relatively much more comprehensive and integrated than data available through other current techniques.

In the near term, the Company’s platform may be applied to generate enriched haplotype data from a single molecule; such use as a detection module may have applicability to research labs, diagnostics companies, population genetics, and the pharmacogenomics market. In the longer term, U.S. Genomics’ approach has the potential to enable the deciphering of complete genomes, individual drug customization, and drug discovery for diseases caused by multiple genes. The ultimate benefit of the GeneEngine™ technology will be empowering the commercial application of genomic data.

About U.S. Genomics
U.S. Genomics (USG) is pioneering breakthrough technologies for direct, linear analysis of DNA for the global life sciences industry. Modeled after the cellular machinery used to read genetic material, the Company’s technologies have the potential to transform the commercial utility of genomic information by enhancing its quality and breadth of application. USG is focused initially on providing technology products and services to markets in drug discovery, pharmacogenomics, and diagnostics. For more information, please visit www.usgenomics.com.