Research Triangle Park, North Carolina
October 23,  2001

Paradigm Genetics, Inc. (Nasdaq: PDGM) today announced that it closed its direct offering of 5.1 million shares for aggregate gross proceeds of $28.0 million (at a price of $5.50 per share) to selected institutional investors. JPMorgan H&Q served as placement agent for the offering, which was announced on October 17, 2001. The shares were offered through a prospectus supplement pursuant to the company's effective shelf registration statement.

This press release does not constitute an offer to sell or the solicitation of an offer to buy.

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(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.paradigmgenetics.com.

Company news release
N3895