Applied Molecular Evolution Announces Board Transition.

Business Editors/Health & Medical Writers

BIOWIRE2K

SAN DIEGO--(BUSINESS WIRE)--Sept. 13, 2002

Applied Molecular Evolution, Inc. (AME) (Nasdaq: AMEV) today announced the election of Raymond V. Dittamore, N. Coleman Owen and William L. Respess, Ph.D., J.D. to its Board of Directors replacing Peter K. Hilal, M.D., Stanley T. Crooke, M.D., Ph.D. and Clive A. Meanwell, M.D., Ph.D. who have resigned due to differences in management style.

"I am very pleased to welcome these gentlemen, each of whom brings decades of experience in critical aspects of biotechnology to the AME Board of Directors," commented William D. Huse, M.D., Ph.D., President, Chief Executive Officer and Chairman of AME. "Ray Dittamore will apply his deep knowledge of generally accepted accounting practices to the AME Board, including serving as chairman of the audit committee. Cole Owen will contribute expertise in market analysis and business development from private biotechnology companies to large pharmaceutical companies. Larry Respess will provide intellectual property and general corporate legal perspective in biotechnology gained from his extensive industry experience."

Dr. Huse continued, "I would like to thank the departing members of the Board for their service and contributions to AME."

Mr. Dittamore's experience includes over 35 years with Ernst & Young LLP including nearly two decades as Managing Partner. Mr. Dittamore serves on the Board of Directors of Invitrogen Corporation, the Board of Directors of Gen-Probe Incorporated and has also served on the Board of Directors of the Burnham Institute. Mr. Dittamore is a founder of BIOCOM/San Diego, the biotechnology trade association. Mr. Dittamore holds a B.A. Degree from San Diego State University.

Mr. Owen is the principal of Owen & Associates, Inc., a healthcare industry consulting firm. Previously, Mr. Owen was a member of the senior management team at Hybritech, one of the earliest biotechnology companies. Mr. Owen is a co-inventor and patent holder of technologies central to certain of Hybritech's most successful products. Mr. Owen held several positions at Hybritech, culminating with Vice President of Business Development at the time when Hybritech was acquired by Eli Lilly & Company. Previously, Mr. Owen was with Johnson & Johnson where he held several senior marketing and business positions. Mr. Owen teaches at the University of California San Diego and the University of Oulu, Finland.

Dr. Respess is AME's Vice President and General Counsel. From 2000 to 2002, Dr. Respess served as Senior Vice President and General Counsel of Graviton Inc. From 1988 to 2000, Dr. Respess served as Senior Vice President and General Counsel of Ligand Pharmaceuticals Inc. Dr. Respess' experience also includes positions as Vice President and General Counsel of Gen-Probe Inc., Vice President and General Counsel of Hybritech Inc. and Partner at Lyon & Lyon. Dr. Respess received a Ph.D. in Organic Chemistry from the Massachusetts Institute of Technology and a J.D. from George Washington University before serving as Law Clerk and Technical Advisor to the Honorable J. Lindsay Almond, Jr., on the United States Court of Customs and Patent Appeals. He is a member of the American Intellectual Property Law Association and has been a frequent lecturer on intellectual property and licensing law.

Applied Molecular Evolution, Inc., (AME) is a leader in applying directed molecular evolution to improve healthcare by optimizing and developing human biotherapeutics. Directed molecular evolution is a process for optimizing genes and proteins for specific commercial purposes. Since its inception, AME's principal focus has been on applying its proprietary AMEsystem(TM) technology platform to human biotherapeutics, the largest market for directed molecular evolution. Biotherapeutics, or biopharmaceuticals, are protein pharmaceuticals such as antibodies, cytokines, hormones and enzymes. AME uses its proprietary technology to develop improved versions of currently marketed, FDA-approved biopharmaceuticals as well as novel human biotherapeutics.

This press release contains forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements, including uncertainties related to product development, uncertainties related to the need for regulatory or other government approvals, dependence on proprietary technology, uncertainty of market acceptance of the Company's products, uncertainties related to business opportunities, the receipt of future payments, including royalties, the continuation of customer relationships and other risks cited in the Company's Annual Report on Form 10-K for the year ended December 31, 2001, and other SEC Filings. These forward-looking statements speak only as of the date hereof. The Company disclaims any intent or obligation to update these forward-looking statements.