Woburn, MA (July 18, 2001) - U.S. Genomics announced today that the United States Patent and Trademark Office has granted Patent No. 6,263,286 covering specific methodologies, software, and hardware that use fluorophores and fluorescence resonance as part of a technology platform to analyze and rapidly sequence complex molecules. The Company's premier application for the methodology protected by this patent is direct, linear analysis of DNA.

Eugene Chan, Chairman and CEO of U.S. Genomics, commented, "This patent, the second in our intellectual property portfolio, concerns a technique for "tagging" the disparate components of cellular polymers on complex, non-linear molecules. The technology identifies segments of the polymers with fluorophores in such a way that, as the molecule moves past a fixed point that "reads" the tags, the components of the polymer emit signals that allow them to be identified. The fluorescent probes identify the sequences of molecules as well as their configurations."

"Of the numerous potential applications for this technique," continued Mr. Chan, "the most exciting is that it enables us to read the genetic information embedded on a strand of nucleic acid in a rapid, linear fashion without the need for reassembly. Because genes have multiple components that are scattered across strands of DNA, one of the fundamental challenges of genetic and genomic analysis is locating and collating the disparate segments of individual genes. The fluorescent tags discussed in this patent enable genes to self-identify in their entirety. By enabling researchers to gain very rapid and comprehensive understandings of genetic information, this technology's implications for the practical and commercial applicability of genomic data are profound."

U.S. Genomics has developed the GeneEngine^TM, a set of laboratory devices that enable 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. The genetic information captured through such direct linear readings is relatively much more comprehensive and integrated than data available through other current techniques.

David Bernstein, Chief Intellectual Property Counsel at U.S. Genomics, commented, "The Company's technology is directed towards the goal of complete-genome analysis - reading the entire, unbroken sequence of genetic information contained on a strand of DNA. This second patent covering our fluorophore tagging system is an integral part of a technology that we believe will revolutionize the application of genomic data. In the near term, our GeneEngine^TM technology platform promises valuable applications in drug discovery, pharmacogenomics, and clinical diagnostics."

To address the emerging commercial need for the rapid production of usable and comprehensive genomic data, U.S. Genomics has created a fundamental new technology that allows direct, linear DNA analysis. U.S. Genomics's unique ability to read rapidly extremely long stretches of a genetic sequence has the potential to transform the utility and commercial application of genomic analysis. In the near term, the Company's platform can be applied to generate enriched haplotype data that provides extremely full information. In the longer term, U.S. Genomics's approach has the potential to enable the deciphering of complete genomes, individual drug customization, and drug discovery for diseases caused by multiple genes.

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.