Biacore Acquires an Exclusive License to Axiom Biotechnologies' Cell-Based Platform Technology.

Business Editors & Health Writers

UPPSALA, Sweden--(BUSINESS WIRE)--Sept. 27, 2001

Biacore International AB (Biacore) (Nasdaq:BCOR) (OMX:BCOR.) today announced that it has signed an agreement with Axiom Biotechnologies Inc that provides Biacore with an exclusive license to all of Axiom's proprietary fluorescent cell- based assay technology with the exception of flow cytometry-based applications. Biacore's decision to acquire this exclusive license results from its desire to drive the commercialization of this important technology, which is complementary to Biacore's own molecular-based assay systems, at a time when Axiom has decided to refocus its business away from instrument development and into drug discovery. Today's deal follows on from an exclusive distribution agreement with Axiom that Biacore signed in May 2000, which included an option to license Axiom's follow-on technology.

A new cell based assay system, which is being licensed from Axiom, complements the recently launched Biacore(R)S51, a system that is targeted at researchers in the lead optimization and preclinical phase of drug discovery. Together the systems can provide detailed information on the biological activity of potential drug candidates in a competitive timeframe and to a depth and quality superior to existing analytical instrumentation, allowing critical Go / No Go decisions on the development of drug candidates to be made with much greater confidence.

Biacore expects the new cell-based assay system to be launched at the end of 2002. The final development of this system will be undertaken using mainly external resources. This approach will allow Biacore to continue to focus its internal resources on existing R&D programs, such as its ground breaking SPR array chip-technology.

"Acquiring an exclusive license to Axiom's technology puts us in a position to strengthen our commercial offering by allowing Biacore to provide the market with complementary molecular and cell-based assay systems to answer important and fundamental questions in drug discovery," commented Dr Ulf Jonsson, President, Biacore International AB. " The ability to drive the commercialization of this technology ourselves means that we are able to benefit from Axiom's decision to change the strategic direction of its business" he continued.

Dr Pandi Veerapandian, Chairman and President of Axiom commenting on today's announcement said, "I am pleased that Biacore has decided to commercialize our fluorescent cell-based assay technology. This will allow us to recapture some of the investment we have made in these technologies, and will support our continuing efforts to expand and advance our cell-based drug discovery platforms."

Under the terms of this agreement Biacore will pay Axiom $5m. Of this $3m will be used by Axiom to repurchase three quarters of Biacore's shareholding in the US company. Biacore's new, reduced equity position is a natural consequence of the US company's decision to focus its activities on drug discovery and its move away from instrument development. The remaining $2m will form Biacore's payment to upgrade its former distribution and option agreement into an exclusive license agreement for Axiom's fluorescent cell-based assay technology outside flow cytometry.

This press release contains certain forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995, which, by their nature, involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements.

Notes to Editors: Biacore Biacore is a global market leader in Surface Plasmon Resonance (SPR) based technology with its own sales operations in the U.S., across Europe, in Japan, Australia and New Zealand. The technology is protected by a strong patent portfolio. Target groups consist primarily of medical and life science research laboratories and pharmaceutical and biotechnology companies all over the world. Biacore focuses on drug discovery as the prime area for future growth. The Company currently has seven systems on the market with its Biacore(R)S51 for applications downstream of high-throughput screening (HTS) including rapid characterization of HTS hits and comprehensive preclinical evaluation of lead compounds. Biacore(R)3000 offers specific applications in drug discovery upstream of HTS. A new SPR array system is currently under development.

Based in Uppsala, Sweden, the Company is listed on Stockholmsborsen and Nasdaq in the U.S. In 2000 the Company had sales of SEK 438.8 million and an operating income of SEK 78.0 million.

Further information on Biacore can be found on the web: www.biacore.com

Axiom Biotechnologies Inc

Axiom Biotechnologies is a privately-held company focused on the more rapid production of drugs that are more effective and safer, through the application of its proprietary suite of rapid, high-definition cell assay resources. These resources include the Axiom Human Cell Bank, a large pharmacologically and genetically characterized collection of human cells; Axiom's SAPhE, RACE and PACE cell assay technologies; and Axiom's physiogenomic and physiomic drug discovery platforms.

Further information can be found on the web: www.axiombio.com

Note to Editors: This press release is also accessible online at www.Waymaker.net.