Acacia Biosciences, Inc. and Novartis Crop Protection, Inc. announced today the signing of a profiling agreement to utilize Acacia’s patented Genome Reporter Matrix TM (GRM) to aid in the selection and optimization of lead compounds for crop protection products. Under the agreement, Acacia will provide chemical and biological profiles on a class of Novartis’ compounds for an undisclosed fee.

"The application of functional genomics and bioinformatics to plant improvement and crop protection
represents a significant opportunity for companies with novel technologies that accelerate or
streamline the discovery process," said Bruce Cohen, President and Chief Executive Officer of
Acacia Biosciences. "This agreement, our third in the agricultural chemical industry and sixth overall,
continues to establish Acacia's GRM as a unique, versatile and broadly applicable genomic tool that
generates indispensable information to help bring exciting new compounds to market faster."

The Genome Reporter Matrix incorporates three elements. The first is a proprietary micro array that
measures changes in gene expression that occur at the level of transcription, translation and splicing.
The second is a comprehensive database of expression profiles generated in response to loss of
function (knock-outs) and customized mutations, approved drugs and other compounds. The third
element is a set of software tools that facilitate the comparison of profiles and the discovery of new
genes and targets. By comparing profiles of experimental compounds to Acacia’s databases, one
can analyze a potential candidate’s ability to mimic the action of a "perfect" drug or assess the
candidate’s similarity to leading drugs on the market. The first generation of this technology is based
on the fully sequenced yeast genome. It is being widely applied in the human pharmaceutical and
agricultural chemical industries.

Acacia Biosciences, Inc. is a drug discovery technology company committed to the creation of
proprietary assay systems and databases that facilitate the rapid development of biopharmaceutical s
and agricultural chemicals. The Genome Reporter Matrix is the first in a series of novel tools that
provide practical analysis of early stage chemicals by interpreting their effects across entire genomes.
In addition to the GRM, Acacia's technology is used to discover novel targets and gene regulatory
mechanisms. Acacia Biosciences is headquartered in Richmond, California, and has collaborations
with American Cyanamid Corp. (a subsidiary of American Home Products Corp.), ArQule, Inc.,
Bristol-Myers Squibb Co., DuPont Agricultural Enterprise (a division of E. I. du Pont de Nemours
and Company) and Eli Lilly & Co.

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