Research Triangle park, North Carolina
April 22, 2004

Paradigm Genetics, Inc. (NASDAQ: PDGM), a biotechnology company, today announced that the company has been issued U.S. Patent No. 6,723,529, titled “Methods for the Identification of Inhibitors of Alpha-Aminoadipate Reductase as Antibiotics.” The patent covers the discovery of a novel gene target (Alpha-Aminoadipate Reductase) in the biochemical pathway by which fungi produce lysine, a nutrient necessary for the growth and development of fungi, as well as methods enabling the discovery of chemicals that inhibit gene protein activity within the lysine pathway. Chemical compounds discovered by Paradigm’s patented method may lead to the development of more effective, less toxic fungicides, which are highly sought after throughout the agricultural industry.

“The issuance of this patent significantly strengthens our intellectual property position on important fungicide target pathways and further demonstrates our ability to apply a systems biology approach to gain a more comprehensive understanding of entire biological systems,” Keith Davis, Ph.D., Vice President, Agricultural Research. “Our scientists were able to identify a second novel target within the lysine synthesis pathway. By inhibiting steps along this critical pathway, we can potentially prevent the growth of fungi known to harm commercial crop production. We believe this discovery will have significant commercial applications, as companies aggressively pursue the development of fungicides that are environmentally safe and more effective than existing products.”

“This discovery supports our strategy of leveraging our technologies, intellectual property and expertise to begin developing our own product opportunities, while continuing to provide the highest quality research for our current and future partners,” said Heinrich Gugger, Ph.D., President and CEO. “This patent, along with the other four fungicide discovery patents issued in the past year, represent the first fruit of our investment in this area and is the beginning of a pipeline of patents we expect to issue in the years to come. Our plan is to use this growing IP portfolio to develop proprietary fungicide products and to drive high value R&D collaborations with agrichemical companies.”

Paradigm also announced the issuance of two additional fungicide discovery patents, bringing the company’s total fungicide patent portfolio to five. One of the new patents (U.S. Patent No. 6,703,200) broadens the scope of Paradigm’s proprietary TAG-KO® technology, a tool for the rapid and systematic mutation of pathogenic fungi, enabling the efficient identification of novel antifungal and fungicide targets as well as novel biosynthetic and degradation pathways. The second patent (U.S. Patent No. 6,689,578) protects a fungicide target in the heme production pathway. Paradigm Genetics has 19 U.S. issued patents in total.

About Paradigm Genetics Paradigm Genetics is a biotechnology company using proprietary systems biology to discover biomarkers to reduce the cost, risk and time of product development, as well as to discover inaccessible targets for small molecule discovery, both for our partners and for Paradigm Genetics. Paradigm Genetics has major collaborations with the National Institute of Environmental Health Sciences, the National Institute of Standards & Technology’s Advanced Technology Program, Bayer CropScience, the Monsanto Company, Pioneer Hi-Bred International Inc. and L’Oréal Inc.