Paradigm Genetics, Inc. (Nasdaq: PDGM), a biotechnology company, today announced that it has signed a two-year extension of its herbicide discovery collaboration with Bayer CropScience, which would take the partnership through September 2006. This extension, the second since the initiation of this program, is structured similarly to the base contract, to include research funds and success fees for assay deliveries.

“We are very pleased that Bayer has elected to extend our collaboration into 2006. This agreement underscores the vital role we play in their herbicide discovery program and is a strong validation of the sustained value of our research capabilities,” said Heinrich Gugger, Ph.D., President and CEO for Paradigm Genetics. “This extension will allow us to further exploit for Bayer the large number of validated herbicide targets discovered during this collaboration.”

"Our decision to extend this partnership with Paradigm Genetics was based on the high level of success we have had to date with this program,“ said Dr. Klaus Stenzel, Head of Global Target Research of Bayer CropScience. “We’ve been impressed with the quantity and quality of targets and assays Paradigm has delivered. Together we are building a strong proprietary position to secure the use of important genomic technologies in herbicide research.”

Paradigm's herbicide partnership with Bayer began in October 1998 with the objective of discovering a portfolio of novel herbicide products that will be developed and marketed by Bayer. The term of the original agreement was three years with an initial option to extend the relationship another two. The first extension was signed in September 2001. To date, Paradigm has analyzed thousands of plant genes, identified hundreds of novel herbicide targets and delivered numerous assays for use in Bayer CropScience's high throughput chemical screening facility. Payments to Paradigm include committed research funds, fees for assays delivered and milestone payments. The agreement includes success fees and possible royalty payments to Paradigm for any commercial herbicides that might emerge from the collaboration.

Paradigm is a biotechnology company driving R&D productivity by focusing its integrated suite of technologies on the product development cycle - from target discovery to the subsequent enhancement of the safety and efficacy profiles of development candidates in agriculture and human health. Paradigm chooses a systems biology approach to understand gene function in the context of biological pathways, and to develop assays and biomarkers for molecular diagnostic solutions tailored to the needs of our partners. Paradigm's proprietary Gene to Cell to System™ approach has four major components: gene expression profiling, biochemical profiling, phenotypic profiling and data integration and coherence.