GENE LOGIC INC. Reports Fourth Quarter And Year End 1997 Results.

COLUMBIA, Md.--(BUSINESS WIRE)--Feb. 25, 1998--GENE LOGIC INC. (Nasdaq NMS: GLGC) announced today the financial results for the fourth quarter and year ended December 31, 1997.

For the year ended December 31, 1997, the Company reported a net loss of $7.2 million, or $0.67 per share as compared to a net loss of $2.9 million or $0.31 per share in 1996. The Company reported a net loss of $2.4 million, or $0.20 per share, for the fourth quarter ended December 31, 1997 as compared to a net loss of $1.2 million, or $0.12 per share for the same quarter in 1996.

For the year ended December 31, 1997, the Company had revenues of $2.0 million, while no revenues were recorded in 1996. The Company had revenues of $1.3 million for the fourth quarter of 1997, while no revenues were recorded for the same quarter in 1996. The increase in revenues was due to the strategic alliances entered into in 1997.

The Company's total expenses were $9.9 million for the year ended December 31, 1997 compared to $3.1 million in 1996. Total expenses for the fourth quarter of 1997 were $4.1 million compared to $1.3 million for the fourth quarter of 1996. The increases for the year and quarter ended December 31, 1997 were the result of the Company expanding its operations, primarily in its research and development efforts.

At December 31, 1997, the Company had cash, cash equivalents and short-term investments of approximately $46.6 million, compared to $5.7 million at December 31, 1996.

During 1997, the Company initiated major strategic alliances with Procter & Gamble Pharmaceuticals, Inc., Japan Tobacco Inc. and NV Organon, a pharmaceutical division of Akzo Nobel. GENE LOGIC completed a private offering in July 1997 and an initial public offering in November 1997, raising total gross proceeds of $46.8 million in such offerings.

GENE LOGIC is a leading genomics and bioinformatics company. The Company uses a proprietary system, based on analysis of gene expression and gene regulation, designed to accelerate the discovery of novel drug targets and drug leads. GENE LOGIC's objective is to provide its pharmaceutical company partners with novel drug targets, drug leads and a suite of genomic database products to reduce the time, cost and risk associated with drug discovery. The core of GENE LOGIC's platform is its unique READS(TM) technology for monitoring the expression level of essentially every gene in a given tissue or cell type with a high degree of sensitivity, reliability and accuracy. Using READS(TM) in a highly-automated production format, GENE LOGIC compares normal and diseased tissues to identify which of the approximately 100,000 human genes are associated with the disease. By analyzing these genes using proprietary bioinformatics software, GENE LOGIC can identify rapidly which expressed genes are implicated in a disease and provide more novel targets for drug discovery in a shorter time and at a lower cost than any competing technology. GENE LOGIC has also developed a comprehensive suite of genomics databases to accelerate drug target discovery and a proprietary Flow-thru Chip(TM) to identify drug leads. -0-

This press release contains forward-looking statements which involve technical and competitive uncertainties that exist in the Company's business. Such statements reflect management's current views of future events, and actual results may differ materially from those described in such forward-looking statements. Factors that could cause or contribute to differences include, but are not limited to, risks and uncertainties associated with the Company's new and developing technologies, successful achievement of research and development objectives by the Company and its strategic partners, the Company's ability to manage multiple, concurrent strategic alliances and reliance on strategic partners for development and commercialization of products, if any, resulting from any discovery programs. These factors and others are more fully described in the Company's prospectus dated November 21, 1997, filed with the Securities and Exchange Commission.

(see attached tables) -0-

                           GENE LOGIC INC.

                       STATEMENT OF OPERATIONS
                (In thousands, except per share data)


                    Three months ended        Twelve months ended
                       December 31,               December 31,
                   1997         1996          1997         1996
                   ------------------------   ------------------------

Revenues           $     1,274  $        --   $     2,047  $        --

Expenses:
 Research and
  development            2,723          760         6,061        1,741
 General and
  administrative         1,383          554         3,826        1,345
                   -----------  -----------   -----------  -----------
   Total expenses        4,106        1,314         9,887        3,086
                   -----------  -----------   -----------  -----------

   Loss from
    operations          (2,832)      (1,314)       (7,840)      (3,086)

Interest Income,
 net                       390          110           745          221
                   -----------  -----------   -----------  -----------

   Loss before income
    tax expense         (2,442)      (1,204)       (7,095)      (2,865)

Income Tax Expense          --           --           100           --
                   -----------  -----------   -----------  -----------

   Net loss        $    (2,442) $    (1,204)  $    (7,195) $    (2,865)
                   ===========  ===========   ===========  ===========
Net Loss Per Common
 Share             $     (0.20) $     (0.12)  $     (0.67) $     (0.31)
                   ============ ===========   ===========  ===========

Shares Used in
 Computing Net Loss
 Per Common
 Share              11,959,805   10,234,256    10,667,288    9,197,660
                   ===========  ===========   ===========  ===========


                    SELECTED BALANCE SHEET INFORMATION
                              (In thousands)


                                                    December 31,
                                                    ------------
                                              1997                1996
                                              ----                ----

Cash, cash equivalents and
 short-term investments                       $   46,621     $   5,671
Total assets                                      53,972         7,819
Mandatorily redeemable convertible
 preferred stock                                      --        10,471
Stockholders' equity                              46,067        (4,187)

CONTACT: GENE LOGIC INC.

Mark D. Gessler 

Senior Vice President Corporate Development

& Chief Financial Officer

[phone]

[e-mail]

www.genelogic.com

or

Burns McClellan, Inc.

Justin Jackson (media)

Reagan Codner (investors)

[phone]