Compugen Announces Licensing of its Z4000 System for Proteomic Research to Organon and Procter & Gamble; Compugen Releases Z3 Version 3.0 2D-Gel Analysis System.

Business Editors, Health/Medical Writers

BIOWIRE2K

TEL AVIV, Israel--(BUSINESS WIRE)--Nov. 6, 2002

Compugen Ltd. (Nasdaq:CGEN) announced today that Organon and Procter & Gamble have licensed its Z4000(TM) fully automated system for accurately designing, analyzing, and controlling large scale 2D-gel experiments for proteomic research.

In addition, the Company announced the introduction of version 3.0 of its Z3 2D-gel analysis system. The new version includes, among other features, clustering capabilities, which enable researchers to better understand protein pathways for drug discovery and development.

Z4000, launched in February 2002, is based on advanced computational technologies, enabling the management and analysis of large-scale protein experiments. Z4000 is Compugen's high-end solution for fast and accurate comparison of 2D-gels and organization of multidimensional gel collections.

Feng Wang, Ph.D., Principal Scientist, Procter & Gamble Pharmaceuticals, stated, "The Z4000 system provides us with the capability to comprehensively manage and analyze multidimensional 2D-gel experiments much more efficiently."

"Following the success of our Z3 system for 2D-gel analysis, and the growing demand for large scale solutions, we introduced Z4000. Since its launch, Z4000 has been enthusiastically received by life science researchers worldwide. The product was chosen as the preferred 2D-gel analysis solution by leading pharmaceutical companies such as Organon, Pfizer and Procter & Gamble. Z4000 is one of Compugen's many products and services, which brings computational modeling into life science research. The licensing of this product by market leaders validates its contribution to the drug discovery and development process," said Erez Chimovits, President of Compugen's BioApplications Division.

Proteomic research is essential for target discovery and drug development. 2D-gel electrophoresis is currently the method of choice for separating complex mixtures of proteins, the first step in the typical proteomic research workflow. Large-scale 2D-gel experiments are used to enable the study of multiple proteomes and allow for higher accuracy through repeat runs of gels sharing similar conditions. Large-scale studies, however, typically consist of hundreds to thousands of gels, and it is impractical to analyze the vast numbers of gel images using traditional computer programs.

Z4000 addresses this limitation by managing and automating the analysis process of large-scale 2D-gel experiments through the use of proprietary algorithms for both gel comparisons and the computation of differential expression of proteins in multidimensional gel collections. In doing so, the Z4000 system offers a solution to a common bottleneck, imposed by constraints of time and computational resources, for scientists undertaking large-scale studies. Z4000 allows researchers to design the experiment, control its progress and accurately analyze large sets of gels. It employs advanced data mining tools that extract meaningful, precise and statistically robust data in an organized manner, while retaining a simple and intuitive user interface.

About Compugen

Compugen (Nasdaq:CGEN) is a pioneer in the merging of computational technologies with biology, chemistry and medicine to enhance drug discovery and development. This unique capability is a proven basis for providing high value products and services to leading biotechnology and pharmaceutical companies and for in-house discovery. For additional information, please visit Compugen's corporate Website at www.cgen.com.

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include words like "may," "expects," "believes," and "intends," and describe opinions about future events. These forward-looking statements involve known and unknown risks and uncertainties that may cause the actual results, performance or achievements of Compugen to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Some of these risks are: changes in relationships with collaborators; the impact of competitive products and technological changes; risks relating to the development of new products; the ability to implement technological improvements; the ability of Compugen to obtain and retain customers. These and other factors are identified and more fully explained under the heading "Risk Factors" in Compugen's Registration Statement on Form F-1 and annual reports filed with the Securities and Exchange Commission.