Research Triangle Park, North Carolina
May 15,  2001

Paradigm Genetics, Inc. (Nasdaq: PDGM), a functional genomics company, today announced that Bayer AG had accepted additional assays for screening in its ultra high-throughput facility. The delivery of these assays triggers undisclosed milestone payments to Paradigm.

The new assays were generated against novel herbicide targets identified by Paradigm’s GeneFunction Factoryä , which combines the company’s proprietary plant phenomics, gene expression profiling, biochemical profiling, and bioinformatics platforms. The assays are designed to identify new classes of safe and effective herbicides. Bayer scientists will use the assays to screen their compound collection for promising product leads. Herbicides represent a $15 billion market annually.

"Our relationship with Bayer continues to progress very well," said John Ryals, Ph.D., CEO and President of Paradigm Genetics, Inc. "Because of the high-throughput capacity of our GeneFunction Factory™, we are able to consistently deliver high quality assays to Bayer. And they, in turn, can screen these assays in their ultra high-throughput screening facility, thereby, increasing the possibility of new herbicide discovery."

Paradigm’s research collaboration with Bayer began in October 1998. The five-year agreement includes payments to Paradigm of $40 million as well as milestone payments and success fees on products discovered.

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.

About Paradigm Genetics

Located in Research Triangle Park, NC, Paradigm Genetics, Inc. is industrializing the process of gene function discovery for four major sectors of the global economy: human health, nutrition, crop production, and industrial products. The company has designed the GeneFunction Factory™ – an integrated, rapid, industrial-scale laboratory through which it discovers gene function. Paradigm and its strategic partners intend to develop novel products using information developed with the GeneFunction Factory™. Paradigm’s GeneFunction Factory™ is based on a state of the art phenomics platform integrated with metabolic profiling and gene expression profiling technologies. The backbone of the GeneFunction Factory™ is the company’s proprietary FunctionFinder™ bioinformatics system, used to collect, store, analyze, and retrieve information. For more information, visit www.paradigmgenetics.com.

GeneFunction Factory™ and FunctionFinder™ are U.S. trademarks of Paradigm Genetics, Inc.

Company news release
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