Research Triangle Park, North Carolina
February 6, 2002

Paradigm Genetics, Inc. (Nasdaq: PDGM) today announced that it has delivered to Bayer AG (NYSE: BAYZ) several high-throughput screening assays for the identification of new and innovative herbicides. Paradigm transferred the assays to Bayer's ultra high-throughput screening platform and received a milestone payment, according to the agreement. Financial details were not disclosed.

"Using our GeneFunction Factory(TM), we are turning out unrivaled numbers of potential herbicide targets and converting them to high-throughput assays for regularly scheduled implementation at Bayer," said John A. Ryals, Ph.D., CEO and President of Paradigm. "Our level of throughput and the quality of our assays are unmatched in the agricultural genomics industry."

Paradigm's original herbicide partnership with Bayer began with the objective of discovering a portfolio of novel herbicide products that will be developed and marketed by Bayer. That three-year agreement included an option for an additional two years that would take the collaboration to October 2003. Bayer exercised its option in June 2001. Under this new expanded agreement, the companies will collaborate on herbicide discovery for up to an additional five years. In addition to committed revenues, Paradigm will receive commercial milestone payments and success fees for all products.

Paradigm brings to the collaboration its expertise in gene function analysis, assay development and bioinformatics. Paradigm's high-throughput analysis includes a series of proprietary analytical processes combined with a computerized knowledge base of plant and fungal gene function information. Bayer brings extensive knowledge of how to develop safe and effective crop protection products, including herbicides, fungicides and insecticides.

About Bayer

Bayer is a diversified, international chemicals and health care group, offering a wide variety of products and services from its health care, agriculture, polymers and chemicals business segments. The company employs 120,000 employees worldwide. For more information, visit www.bayer.com. For more information on Bayer's crop protection strategy, visit www.news.bayer.com. 

About Paradigm Genetics, Inc.

Paradigm Genetics, Inc. (Nasdaq: PDGM), headquartered in Research Triangle Park, NC, is an integrated life sciences company developing novel technologies to speed the discovery of products for the advancement of agriculture, human health and nutrition. In agriculture, Paradigm has unlocked the potential of functional genomics through its GeneFunction Factory(TM) industrialized technology platform, which links gene expression profiling, biochemical profiling, and phenotypic profiling to create industry-leading genomic knowledge and intellectual property advantages. This unparalleled volume of
information is integrated with gene discovery data from public and proprietary sources by the company's FunctionFinder(TM) bioinformatics system. ParaGen, a new business venture between Celera Genomics, Inc. and Paradigm Genetics, Inc., offers gene sequencing, genotyping, and other genomic technology services to plant- and microbial-based product development customers.

GeneFunction Factory(TM) is a U.S. trademark of Paradigm Genetics, Inc. FunctionFinder(R) is a registered U.S. trademark of Paradigm Genetics, Inc.