Paradigm Genetics, Inc. (Nasdaq: PDGM), a functional genomics company, today announced it has delivered new assays for high-throughput screening to Bayer AG (NYSE: BAYZY). The delivery of these assays triggers undisclosed milestone payments to Paradigm from Bayer. 

The new assays are designed to identify novel classes of safe and effective herbicides. Bayer scientists will use the assays to screen their extensive compound collection for promising product leads. Paradigm will receive additional milestone payments during the course of the agreement and royalty payments on products discovered. 

"We are able to meet and surpass milestones because of our expertise in functional genomics and the speed of our GeneFunctionFactory(TM) continues to improve," John Ryals, Ph.D., CEO and President of Paradigm Genetics, Inc. "We look forward to future deliveries of herbicide assays to Bayer for use in its high-throughput screening facility."

Paradigm's research collaboration with Bayer began in October 1998. Since that time, Paradigm has achieved several milestones, including delivery of two versions of its customized FunctionFinder(TM) bioinformatics system and a high-throughput screening assay. Paradigm brings to the collaboration its expertise in gene function analysis and bioinformatics. Paradigm's high-throughput analysis methodology is comprised of 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.

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 information related to Bayer's efforts in crop protection, visit http://www.baynews.bayer.com/News/news.nsf/ID/NT00007B86, 
http://www.baynews.bayer.com/News/news.nsf/ID/NT00007B72, 
and http://www.baynews.bayer.com/News/news.nsf/ID/NT00007B8E. 

Headquartered 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(TM) - 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(TM). Paradigm's GeneFunction Factory(TM) 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(TM) is the company's proprietary FunctionFinder(TM) bioinformatics system, used to collect, store, analyze, and retrieve information. For more information visit www.paragen.com. 

Company news release
N3177