Lynx Announces Follow Up Contract with Researchers at University of Southern California to Study Oyster Larval Development.

HAYWARD, Calif. -- Lynx Therapeutics, Inc. (Nasdaq:LYNX) today announced that the National Science Foundation (NSF) has awarded University of Southern California (USC) College of Letters, Arts & Sciences Biology Professors Dennis Hedgecock and Donal Manahan a research grant that will make use of Lynx's Massively Parallel Signature Sequencing (MPSS(TM)) whole genome gene expression technology.

This new service agreement builds upon a previous contract that was aimed at understanding the factors involved in rapid growth (hybrid vigor) of oysters and represents a vote of confidence on the unique capabilities of Lynx's technology especially when applied to organisms with unsequenced genomes. Under the terms of this new agreement, Lynx will receive payment for the genome-wide transcriptome sequencing services it will perform on oyster samples provided by the investigators.

"MPSS has jump started our efforts to understand, at the genomic level, the genetic and physiological bases of hybrid vigor in oysters, a non model species," said Professor Dennis Hedgecock.

The NSF-sponsored project uses the Pacific oyster as a model to understand the genetics and physiology of growth, weight gain, and starvation resistance. These biological factors affect the survival and recruitment of marine larvae to adult populations - a major concern in marine fisheries management and conservation. The project also benefits a large oyster aquaculture industry by identifying genes or patterns of gene expression that affect larval survival or predict yield of hatchery 'seed' oysters. The Pacific oyster Crassostrea gigas, since 1998, has had the highest worldwide production of any cultured freshwater or marine species, at about 4 million metric tons per year (worth $3.4 billion).

About University of Southern California

For more than 100 years, the USC College has excelled in marine sciences. Located in Los Angeles, the USC College of Letters, Arts & Sciences, the largest of the university's 19 academic schools, produces fundamental research findings across the life sciences, physical sciences, social sciences and humanities. The USC College's Wrigley Marine Science Institute, located on nearby Catalina Island, is where the larval research will be undertaken.

About Lynx

Lynx believes that it is a leader in the development and application of novel genomic analysis solutions. By "novel," Lynx means next generation technology that will take the engagement of thought leaders before broader commercial acceptance can occur. Lynx's Massively Parallel Sequencing System (MPSS(TM)) consists of proprietary instrumentation and software that are used to analyze millions of DNA molecules in parallel, enabling genome structure characterization at an unprecedented level of resolution. As applied to gene expression analysis, MPSS(TM) provides comprehensive and quantitative digital information important to modern systems biology research in the pharmaceutical, biotechnology and agricultural industries. For more information, visit Lynx's Web site at www.lynxgen.com.

This press release contains "forward-looking" statements, including statements related to including statements related to the identification of differentially expressed genes, the potential success of collaboration arrangements and Lynx's performance of its genomics discovery services for current and future customers and collaborators. Any statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Words such as "believes," "anticipates," "plans," "predicts," "expects," "envisions," "hopes," "estimates," "intends," "will," "continue," "may," "potential," "should," "confident," "could" and similar expressions are intended to identify forward-looking statements. There are a number of important factors that could cause the results of Lynx to differ materially from those indicated by these forward-looking statements, including, among others, risks detailed from time to time in Lynx's SEC reports, including its Annual Report on Form 10-K for the year ended December 31, 2003, as amended, its Quarterly Report on Form 10-Q for the period ended September 30, 2004 and its Proxy Statement/Prospectus filed pursuant to Rule 424(b)(3) on January 24, 2005. Lynx does not undertake any obligation to update forward-looking statements.