Research Triangle Park, North Carolina
May 1, 2002

Company exceeds analysts' quarterly consensus earnings estimate as reported by First Call by one cent

Paradigm Genetics, Inc. (Nasdaq: PDGM), an integrated life sciences company, today reported financial results for the first quarter ended March 31, 2002.

For the three months ended March 31, 2002 total revenues increased 8% to $5.9 million, compared to approximately $5.5 million for the same period in 2001. The increase in revenue was generated from herbicide assays developed by the company under its commercial partnership with Bayer AG.

Total operating expenses for the three months ended March 31, 2002 increased 15% to $11.0 million compared to $9.6 million for the same period in 2001. The increase in operating expenses resulted from the company's investment in its MetaVantage(TM) human metabolomics platform, investments in informatics-based technologies and expenses associated with operating its ParaGen plant genotyping business.

Including non-cash compensation charges, the company reported a first- quarter 2002 net loss attributable to common stockholders of $5.2 million, or $0.16 per common share, which was one cent better than the consensus earnings estimate reported by First Call. This compares to a net loss of $4.0 million, or $0.15 per common share for the same period in 2001. Excluding the non-cash compensation charges, the net loss for the three months ended March 31, 2002 would have been $5.0 million, or $0.16 per common share.

"I am pleased that during the first quarter of 2002 we were able to satisfactorily execute the necessary organizational changes and maintain our focus on operations. That speaks to the strength of our company," said John E. Hamer, Ph.D., Acting President and CEO. "Now that our restructuring is complete, Paradigm is a more focused, leaner company. We expect that our quarterly expense base beginning in the third quarter of this year will be about $5 million a year lower than where we were in the first quarter. We are looking forward to continuing to seek additional partnerships in agriculture and healthcare."

Highlights
During the First Quarter 2002, Paradigm:

• Completed an internal restructuring to better focus resources to grow its human healthcare and agricultural businesses. The restructuring included the establishment of distinct business units for healthcare and agriculture, the realignment of research groups, and a reduction of about 20 percent in the workforce. Administrative and some research positions were affected.
• Announced a research and development collaboration with VDDI Pharmaceuticals to develop antibiotics for the treatment of gram- positive bacterial infections. Under the terms of the agreement, VDDI will support Paradigm's research and development efforts, as well as pay
  potential royalties. In addition, Paradigm will have the option to make an unspecified equity investment in VDDI.
• Signed a multi-year collaborative research agreement with Duke University Medical Center to apply metabolomics in drug discovery and development. Under the terms of the agreement, Paradigm and Duke University Medical Center will research multiple disease areas to identify and validate novel drug targets for drug discovery, as well as seek to discover new biomarkers for use in predictive medicine. Cardiovascular disease is the first project under the collaboration.
• Signed an agreement with Bio-Technical Resources to co-market enzyme and microbial-based bio-processing technologies.
• Delivered several high-throughput screening assays to Bayer AG for use in the identification of new and innovative herbicides. Paradigm transferred the assays to Bayer's ultra high-throughput screening platform and received a milestone payment.
• Named Leroy E. Hood, M.D., Ph.D., to the Board of Directors. Hood is president and director of the Institute for Systems Biology in Seattle Washington, an organization he founded in 1999 to pioneer systems approaches to biology and medicine.

About Paradigm Genetics

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 and human health. In agriculture, Paradigm has unlocked the potential of functional genomics through its industrialized technology platform, GeneFunction Factory(TM), which links gene expression profiling, biochemical profiling, and phenotypic profiling to create industry-leading genomic knowledge and intellectual property advantages. ParaGen, a division of Paradigm Genetics, Inc., offers genotyping and other genomic technology services to customers developing plant- and microbial-based products. In human health, Paradigm seeks to use its proprietary metabolomics technology platform, MetaVantage(TM), to transform drug discovery and development by significantly enhancing the study of drug targets, lead compounds, and predictive medicine. MetaVantage(TM) elucidates the metabolic profile of a human cell, tissue, or fluid, and integrates this information with data from other genomics analyses using its proprietary comprehensive informatics system. By globally interrogating biochemistry, MetaVantage(TM) extends traditional genomic technologies to reveal the next level of cellular information.