GENE LOGIC and Organon Enter Gene Expression Database Alliance.

COLUMBIA, Md.--(BUSINESS WIRE)--Jan. 8, 1997--GENE LOGIC INC. (Nasdaq: GLGC) today announced that it has entered into a gene expression database alliance with NV Organon, a pharmaceutical business unit of Akzo Nobel. The three year agreement provides Organon with non-exclusive access to GENE LOGIC's GENE EXPRESS(TM) Normal database, a reference set of quantitative gene expression profiles in a wide variety of normal human, rat and mouse tissues, and a proprietary bioinformatics system for the analysis and integration of gene expression information into its drug discovery process. In addition, GENE LOGIC will construct a research database of gene expression for drug target discovery for specific Organon programs. Organon will be responsible for the worldwide development and commercialization of drugs arising from the alliance, while GENE LOGIC retains rights to diagnostics and certain categories of therapeutics. Under the agreement, GENE LOGIC will receive annual research funding, database license fees, milestones, and royalties on sales of products. Financial terms of the agreement were not disclosed.

"This alliance with GENE LOGIC further strengthens our drug discovery efforts by enabling Organon to benefit from and expand upon the latest insights into the genetic basis of disease," said Driek Vergouwen, Managing Director, Research and Development of Organon. "The knowledge of gene expression and regulation will be applied to develop novel drugs intended for use in gynecological, psychiatric, cardiovascular and other diseases. We believe that GENE LOGIC's technology, database information and bioinformatics for identifying new drug targets will put us at the forefront in developing new classes of drugs."

"Through this alliance, Organon gains access to our comprehensive, genomics-based drug target discovery system. The components of this system include a database built exclusively for Organon and non-exclusive access to GENE EXPRESS(TM) Normal database and bioinformatics analysis software. The alliance allows Organon to strengthen its drug discovery pipeline and leverage its investments in combinatorial chemistry and high-throughput screening," said Michael J. Brennan, M.D., Ph.D., President & CEO of GENE LOGIC.

NV Organon develops and produces pharmaceutical products in the fields of gynecology, psychiatry, cardiovascular, and autoimmune diseases. Major product groups are oral contraceptives, infertility treatments, and preparations for menopausal complaints, depression, and psychosis. NV Organon is one of the pharmaceutical business units of Akzo Nobel. Akzo Nobel headquartered in Arnhem, the Netherlands, is a market-driven and technology-based company, serving customers throughout the world with healthcare products, coatings, chemicals, and fibers. The company employs 70,000 people and has activities in more than 60 countries. In 1996, consolidated sales aggregated NLG 22.4 billion.

GENE LOGIC 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. The Company'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 a unique 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. In its target discovery process, GENE LOGIC creates "molecular movies" which show the changes in gene expression patterns as a disease develops and progresses in a special cell or tissue type, across different cell types, and in cells treated with various drugs or experimental compounds. By analyzing these changes 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. In addition to Organon, GENE LOGIC has established major strategic alliances with Procter & Gamble Pharmaceuticals, Inc. and Japan Tobacco Inc.

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 ascribed 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, or 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.

CONTACT: GENE LOGIC INC.

Mark D. Gessler

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& Chief Financial Officer

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