Incyte and Zeneca Announce Strategic Partnership in Agrigenomics.

WILMINGTON, Del.--(BUSINESS WIRE)--Dec. 2, 1998--Incyte Pharmaceuticals, Inc. (Nasdaq: INCY) and Zeneca announced today a major collaboration in the field of agrigenomics. Agrigenomics is the detailed study of the genetic make up of the plant and how all the genes work together to produce the crop. This collaboration extends the existing pharmaceutical collaboration between Incyte and Zeneca, which was initiated in 1996, with agreements covering access to several Incyte database products.

Under the multi-year collaboration, Zeneca will have access to Incyte's PhytoSeq(TM) database. Incyte will apply its high-throughput gene sequencing and bioinformatics capabilities towards the generation of gene sequence and expression information for crop plants designated by Zeneca to be included in the PhytoSeq(TM) database. The PhytoSeq(TM) database will contain sequence information from a range of agriculturally important crops including wheat, maize and rice.

In addition, Zeneca will have access to Incyte's microarray technology for the study of gene pathways and to monitor gene expression in plants. Incyte will provide Zeneca with data from both custom and pre-fabricated microarrays. This will provide an unprecedented level of information, allowing researchers at Zeneca to study multigenic pathways, or thousands of genes at a time, in a single experiment.

Dr. David Evans, Research and Development Director, Zeneca Agrochemicals, said "This collaboration opens up an exciting new area in our work with Incyte. PhytoSeq(TM) will provide a major driver for the research programs at our existing research centers at Jealott's Hill (UK) and Leiden (NL) and also our new Zeneca Laboratory which is being built at the John Innes Centre in Norwich (UK)."

Roy A. Whitfield, Chief Executive Officer of Incyte said, "Zeneca has extensive experience working with Incyte's advanced genomics tools for pharmaceutical research, and we are pleased to enter into this new partnership in the emerging area of agrigenomics. This is an exciting time in the industry where we can apply powerful genomics technologies, such as sequencing, bioinformatics and microarray technology, in an integrated format to develop a comprehensive program targeted towards agricultural research."

Zeneca Group PLC (Registered Office, London) is a leading international bioscience group with sales in 1997 of British Pounds 5.194 billion.

Zeneca Agrochemicals is the crop protection and plant science business of Zeneca Group. It is the third largest supplier to the international market with sales in 1997 of British Pounds 1.63 billion. Zeneca introduced tomato puree, the UK's first genetically modified product in February 1996. The puree is clearly labeled as a genetically modified product and is a commercial success.

Incyte Pharmaceuticals, Inc. is a leading provider of an integrated platform of genomic technologies designed to aid in the understanding of the molecular basis of disease. The Incyte General division develops and markets gene discovery and expression products - including databases, genomic data management software, microarray-based gene expression services, and related reagents - enabling the pharmaceutical industry to identify new targets and pathways for drug discovery and development. The Incyte Genetics division will provide databases, bioinformatics, and services relating to sequencing and mapping the human genome and identifying gene sequence variation, enabling the pharmaceutical industry to utilize pharmacogenetics as an integral part of pharmaceutical discovery and development. For more information, visit Incyte's web site at www.incyte.com.

John Innes Centre (JIC, Norwich, UK) is an independent research center for plant and microbial sciences. JIC has over 850 staff and students. JIC carries out high quality fundamental, strategic and applied research to understand how plants and microbes work at the molecular, cellular and genetic levels. On 15th September Zeneca announced a British Pounds 50m investment in wheat research at the John Innes Centre.

Except for the historical information contained herein, the matters set forth in this press release, including statements as to the usefulness of Incyte's products and services in agrigenomics, are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including the impact of alternative technological advances and competition, and other risks detailed from time to time in Incyte's SEC reports, including its Quarterly Report on Form 10-Q for the quarter ended September 30, 1998. Incyte disclaims any intent or obligation to update these forward-looking statements.