Affymetrix and Molecular Dynamics Enter Agreements to Expand Access to DNA Array-Based Genetic Analysis Tools.

SANTA CLARA and SUNNYVALE, Calif.--(BW HealthWire)--Dec. 2, 1997--Affymetrix, Inc., (NASDAQ:AFFX) and Molecular Dynamics, Inc., (NASDAQ:MDYN) announced today the formation of the Genetic Analysis Technology Consortium (GATC), which intends to standardize the rapidly growing field of array-based genetic analysis, paving the way for the more affordable and productive development of therapeutic, diagnostic and disease management products. The consortium was created to provide a unified technology platform to design, process, read and analyze DNA-arrays of DNA. As a result of the GATC consortium, researchers will benefit as chips, readers, reagents, and software and database architectures that are GATC-compliant will be compatible, eliminating the need for redundant equipment and software.

In addition, Affymetrix and Molecular Dynamics announced today that they have signed a non-exclusive license agreement granting Molecular Dynamics rights to certain Affymetrix technology for commercializing low and medium density DNA-arrays.

The Importance of DNA-Array Technology

DNA-array technology -- the deposition and analysis of gene expression using thousands of DNA samples on a substrate -- offers a fundamentally new approach to understanding the role of genes in human health. Scientists believe that understanding the function and expression level of genes will accelerate the identification of targets associated with specific disease and will lead to the development of new drugs, diagnostics, and disease-management products. Affymetrix and Molecular Dynamics have independently developed two different yet complementary array technologies.

Molecular Dynamics has developed and is marketing an integrated DNA microarray deposition, reading and analysis system that allows researchers to prepare customized arrays from their in-house biological samples. Affymetrix sells a menu of standard and custom GeneChip probe arrays that are manufactured using a high resolution photolithographic fabrication process adapted from the semiconductor industry.

GATC Founded

As the founding members of the GATC, Affymetrix and Molecular Dynamics intend to create and publish a set of standards that will allow pharmaceutical, biotechnology and academic researchers to use uniform reader, data formats and reagents to process arrays manufactured from multiple sources, eliminating the expense and inconvenience of using several incompatible systems. The standards established under the GATC cover the DNA-arrays, reagent kits, instrumentation, software and database architectures and are intended to create a unified technology platform.

All of Affymetrix' GeneChip products are intended to be certified as GATC compliant. Molecular Dynamics intends to produce GATC compliant arrays and readers to be marketed to industry and academia.

"The formation of the GATC consortium is a significant step forward in making DNA-array technology broadly available to the genomics research community," stated Dr. Stephen P.A. Fodor, President and CEO of Affymetrix, Inc. "By creating a standardized and accessible technology platform we reduce the likelihood that multiple incompatible platforms will be needed."

License Agreements

Affymetrix has granted Molecular Dynamics a non-exclusive, worldwide, royalty-bearing license to certain intellectual property related to DNA array technology for manufacture, use and sale of low and medium density arrays. The license to Molecular Dynamics applies to the research field for gene expression analysis with mechanically-spotted arrays. The license does not include Affymetrix' technology for light-directed synthesis. In exchange for the license, Affymetrix will receive undisclosed royalty payments on products sold by Molecular Dynamics. In addition, Molecular Dynamics has licensed Affymetrix under certain of its patents in the array reader field.

"As a founding member of the GATC consortium and a licensee to Affymetrix' intellectual property covering DNA-array technologies, Molecular Dynamics is now positioned to accelerate its efforts to broadly commercialize clone-spotting technology and low and medium density DNA arrays to genomics researchers worldwide," said Jay Flatley, President and Chief Executive Officer of Molecular Dynamics. "Through this standard and the related licenses, Molecular Dynamics can now aggressively expand our Microarray Technology Access Program that was launched in late 1996 and accelerate our efforts to provide leading-edge technology to a broad base of users of array technologies."

About the Partners

Affymetrix has developed and intends to establish its GeneChip system as the platform of choice for acquiring, analyzing and managing complex genetic information in order to improve the diagnosis, monitoring and treatment of disease. The company's GeneChip system consists of disposable DNA probe arrays containing gene sequences on a chip, reagents for use with the probe arrays, a scanner and other instruments to process the probe arrays, and software to analyze and manage genetic information.

Molecular Dynamics, with headquarters in Sunnyvale, CA, is a leading developer, manufacturer, and international marketer of systems that accelerate genetic discovery and analysis. The company's products dramatically increase scientists' ability to visualize, quantify, and analyze genetic information. Working closely with strategic partners, customers and genomics leaders, Molecular Dynamics has taken a highly collaborative approach to leverage the company's core technologies for next-generation genomics applications including DNA sequencing and DNA microarray processing and analysis.

All statements in this press release that are not historical are forward-looking statements. Such statements are subject to risks and uncertainties that could cause actual results to differ materially for Affymetrix from those projected, including, but not limited to, uncertainties relating to technological approaches, product development, manufacturing, and market acceptance, uncertainties related to cost and pricing of Affymetrix products, dependence on collaborative partners, uncertainties relating to sole source suppliers, uncertainties relating to FDA and other regulatory approvals, competition, risks relating to intellectual property of others and the uncertainties of patent protection. These and other risk factors are discussed in Affymetrix' Registration Statement on Form S-3 filed with the Securities and Exchange Commission ("SEC") on October 17, 1997, and in periodic reports filed with the SEC, including the Company's annual report on Form 10-K for the year ended December 31, 1996 and quarterly report on Form 10-Q for the quarter ended September 30, 1997. Affymetrix expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Affymetrix' expectations with regard thereto or any change in events, conditions, or circumstances on which any such statements are based. Affymetrix, GeneChip and the Affymetrix logo are registered trademarks of Affymetrix, Inc.

Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements that involve risks and uncertainties, including the timely shipment of new products, the effect of competitive pressures and other risks detailed from time to time in Molecular Dynamics' SEC reports, including the Annual Report on Form 10-K for the fiscal year ended December 31, 1996 and the quarterly Report on Form 10-Q for the quarter ended September 30, 1997.

CONTACT: Molecular Dynamics, Inc.

Jay Flatley, 408/737-3000

David Barker, 408/737-3003

or

Affymetrix, Inc.

Edward M. Hurwitz, 408/731-5000

Anne Bowdidge, 408/731-5925