Catalyst Communications Inc. Signs Letter of Intent to Acquire DNAPrint genomics Inc.

Business Editors

SARASOTA, Fla.--(BUSINESS WIRE)--June 30, 2000

Catalyst Communications, Inc. (Pink Sheets:CLYC) announced today that it has signed a letter of intent to acquire privately held DNAPrint genomics Inc., a Sarasota, Florida based genomic research and personalized medicine corporation.

DNAPrint genomics is developing a cutting edge informatics platform for the application of human genome information to medical practice. The analytical tools that DNAPrint genomics, Inc. will offer focus on the dissection of complex genetic traits through the study of human genetic variation. Currently, there are no such tools available within the Genomics community. Association of genotype with phenotype is usually accomplished using relatively simple association tools. However, simple tools do little to unravel the inherently complex patterns at work. Since most human diseases and drug interaction responses are the result of complex genetic and environmental interactions, this represents a serious gap in our understanding of the genetic basis for disease and drug response. With the recent completion of the bulk of the Human Genome Project, along with the recent introduction of automated, high-throughput genotyping hardware systems, it is now theoretically feasible to conduct systematic, population-based studies of complex human traits and diseases. Still lacking in the genomics community are sophisticated analytical tools that help decipher the massive amounts of data involved with these studies. DNAPrint genomics intends to provide these analytical tools.

DNAPrint genomics details

The PhenomeSM platform system currently being developed by the Company will allow biopharmaceutical research and development companies, academic institutions and primary health care facilities to combine genomic research with individual genetic profiles to define, diagnose and treat human diseases on a level never before possible.

The main market for the company's product is the clinical community. It is widely accepted that recent technological advancements in high-throughput genotyping, and emerging public domain human genome information resources will combine to evolve medicine toward a more "patient-centric" model, where medical professionals will define their diagnoses and treatment regimens in terms of a patient's unique genetic profile. Rather than prescribe drugs, or diagnose disease, based on average responses or characteristics from the population, patients of the future will be considered within the context of their personal genetic make-up, or genotype. The tailoring of medicine to a patient based on their genotype is known as personalized, or customized medicine, and this medicine will rely on systematic and comprehensive analysis of human genetic variation through SNP (Single Nucleotide Polymorphism) sequencing.

DNAPrint genomics Business

The company will provide practitioners of genomic research and personalized medicine with a comprehensive system for disease dissection and patient classification. Physicians will be able to use the company's system, through a combination of on-site hardware/software placement and ASP (application-service provider) resources, to draw highly sophisticated conclusions and associations between patient genotype data and database patterns from historical studies. Many of these studies will be performed by DNAPrint genomics and/or its partners. The analytical heart of the system is a collection of sophisticated algorithms that enable a progression from the multivariate dissection of high-density genotype matrices to multi-dimensional associations with complex human traits. The system uses a variety of novel mathematical modeling and programming techniques, which comprise the bulk of the company's budding intellectual property portfolio. The company has already filed patent applications for a genetic analysis reagent that confers considerable advantages for high-throughput DNA sequencing and genotyping, and has filed applications for five trade and/or service marks connected with the companies business model. The company intends to patent the application of its informatics platform to the field of genomic research and for personalized medical applications.

During the development phase of this informatics platform, the company performs genetic variation studies on a number of different target areas, including drug response and cancer. Not only do these targets provide a comprehensive training set for the algorithms and models developed by the company, but the genetic patterns discovered through the analysis represent separate, and valuable assets. For example, the application of the informatics platform to patients which exhibit side-effects for a certain drug can produce a valuable diagnostic product which could reduce patient morbidity associated with the use of that drug. The company intends to patent and use these "information" assets to generate near-term revenue growth and profitability.

DNAPrint genomics Inc. was founded by a group of scientists with research and commercial experience in high-level mathematical modeling, programming and molecular genetics. Combined, the founders have amassed over 47 years of experience in these fields, published 31 peer-reviewed papers and filed 42 patent applications covering over 350 unique genetic products in 25 different countries. Chief Scientific Officer, Tony Frudakis, Ph.D. stated, "We are excited by the prospect of coupling our scientific goals with CLYC's financial positioning outside of the genomics community. We consider this an ideal way to fund a genomics based business plan in a manner which is responsible to near-term as well as long-term investors." DNAPrint genomics, Inc. is located at 1748 Independence Blvd. Suite D1, Sarasota, FL 34234. For more information about the company, please visit www.dnaprint.com.

Catalyst Communications, Inc. is in the process of filing its Form 10SB and is attempting to become a reporting company under the provisions of the Securities Exchange Act of 1934, as amended, so it will be eligible to be quoted on the NASD's OTC Bulletin Board.

Except for factual statements made herein, the information contained in this press release consists of forward-looking statements that involve risks and uncertainties. The Company's actual results could differ materially from those contained in such statements. Factors that could cause or contribute to such differences include unexpected shortages of critical components, rescheduling or cancellation of customer orders, the timing and market acceptance of new product introductions by the Company and its competitors, and general competition and price pressures in the marketplace. Reference is also made to other factors set forth in the Company's filings with the Securities and Exchange Commission.