DEGUSSA STRENGTHENS ITS POSITION IN NUCLEIC ACID MARKET.

The Degussa Group, Dusseldorf, Germany, will acquire Genset Oligos, the oligonucleotide division of Genset S.A., Paris (France), for US $21.5 million, and merge it with Proligo, its subsidiary based in Boulder, Colorado.

The industrial experience held by Genset Oligos will make Proligo a fully integrated supplier of nucleic acid specialties (genomics and genetic medicine). The acquisition will also provide Proligo with an immediate global sales channel for its highly specific products (oligonucleotide probes, custom Locked Nucleic Acid, LNATM). The transaction is expected to be closed by the end of the first quarter of 2002.

Prof. Utz-Hellmuth Felcht, management board chairman of Degussa, stated: "We have already achieved a leading position as manufacturer of components and active agents for the pharmaceutical industry, namely by acquiring Laporte, and are now tackling the innovative and attractive market for the ultra fine chemicals required in pharmaceutical research more strongly. Having secured sole ownership of Proligo in August 2001, our acquisition of Genset Oligos is a further step of strategic importance, as it will enable us to supply customers with services along the entire value-added chain of drug development -- from drug targeting (genomics) to the production of active agents."

After the acquisition of Genset Oligos, Proligo will continue to be headquartered in Boulder,Colorado, and manufacturing sites will be located in the U.S.A., Germany, France, Japan, Singapore and Australia.

"Combining the know-how of Proligo and Genset Oligos will enable us to consistently expand our nucleic acid activities and position us to access the global biotechnology research market. Through the acquisition of Genset Oligos, we will be able to introduce innovative new products to the market and enhance the growth rate of our current business even further," explains Wolfgang Pieken, Ph.D., president und CEO of Proligo.

Proligo is a dedicated specialist in professional and progressive nucleic acid products. Nucleic acids are essential components of the genetic material of all organisms and are proving increasingly important in opening up new dimensions in diagnostic and therapeutic applications. In future, new active agents based on synthetic nucleic acids will enable the early and effective detection of serious illnesses, such as viral infections or tumors. With a workforce of some 120 employees, Proligo generated sales of around $15 million in fiscal 2000. Through the acquisition of Genset Oligos, its turnover and workforce will more or less double in size.

Genset is a genomics-based pharmaceutical company focused on generating a pipeline of drug targets and candidates in the areas of CNS and metabolic disorders. Building upon the expertise accumulated in various alliances with pharmaceutical partners and its portfolio of genomic patents, Genset now intends to pursue and validate novel drug targets and candidates for its own account.

Degussa is an entirely newly formed, globally active corporation consistently aligned to high-yield specialty chemistry. With sales of EUR17 billion and a workforce of 63,000 employees, it is Germany's third-largest chemical company and world market leader in specialty chemicals. In fiscal 2000, the corporation generated an operating profit (EBITA) of EUR1.2 billion. Degussa's strength lies in highly effective system solutions tailored to the requirements of customers in over 100 countries of the world. Its activities are led by the vision "Everybody benefits from a Degussa product -- every day and everywhere."

For more information, call 303/516-3105 or visit http://www.proligo.com and http://www.degussa.com.