Icoria, Inc. (NASDAQ: ICOR), an integrated systems biology company, announced today that it has raised $5 million gross proceeds through the sale of a three-year Secured Convertible Term Note (“Note”) in a private placement with Laurus Master Fund, Ltd. This Note is payable in cash or convertible into shares of Icoria’s common stock at a fixed conversion price of $0.53 per share beginning in May 2005. Terms of the Note provide for an initial interest rate of Prime plus 2.50%, subject to reductions dependent on future increases in Icoria’s share price.

In connection with the sale of this Note, the Company issued warrants that provide for the purchase of approximately 1.65 million shares of Common Stock at a weighted average price of $0.79. Equal amounts of these warrants expire two and five years after issuance.

”This financing represents an important milestone in strengthening our liquidity position, as we move closer to financial self-sustainment. With the proceeds from this financing we have repaid our existing equipment loan to General Electric Capital Corporation, which carried interest rates over 11% and placed restrictions on our cash. This financing also helps us with our current loan covenants,” said Philip R. Alfano, Chief Financial Officer of Icoria.

"We are very pleased to have secured this financing, which will provide necessary capital to continue to grow our business,” said Heinrich Gugger, Ph.D., President and CEO of Icoria. “When coupled with the net cash flow resulting from our growing revenue base, this financing allows us to continue to expand and enrich our programs to meet the needs of the healthcare and agrichemical marketplaces.”

The Company will file a Form 8-K Report with the Securities and Exchange Commission including supporting documents related to this financing transaction.

Icoria (formerly Paradigm Genetics, Inc.) is an integrated systems biology company applying its proprietary platform to the discovery and development of safer, more effective drugs and agrichemicals. Icoria has major contracts with the National Institute of Environmental Health Sciences, Bayer CropScience, the Monsanto Company, Pioneer Hi-Bred International (a subsidiary of DuPont) and L'Oréal Inc. Icoria also has a major grant from the National Institute of Standards & Technology's Advanced Technology Program.