Lynx Announces Publication of a Scientific Paper Showcasing the Usefulness of MPSS for Whole Genome Structure Analysis.

HAYWARD, Calif. -- Lynx Therapeutics, Inc. (Nasdaq:LYNX) today announced the publication of a peer-reviewed manuscript that describes the use of publicly available data from Lynx's Massively Parallel Signature Sequencing (MPSS(TM)) gene expression technology and highly sophisticated computational algorithms to better understand the regulation of gene expression on a genome wide scale. The manuscript appeared in the Bioinformatics section of the June 2004 issue of Plant Physiology.

The research discussed in this manuscript analyzes the relationship between certain structural features of chromosomes and gene expression. Researchers used the quantitative and whole-genome MPSS(TM) gene expression data from the plant Arabidopsis thaliana, a commonly used model for many crop plants, to investigate functional implications of in silico predicted Scaffold/Matrix Attachment regions (S/MARs), which attach the genomic DNA to the protein network of the nucleus. Genomatix Software GmbH, the Munich Information Center for Protein Sequences (MIPS) (both of Munich, Germany) and the University of Delaware worked in collaboration during this study. The MPSS(TM) data generation and maintenance of the database were funded by a grant from the National Science Foundation. The Web site hosting the original data can be found at http://mpss.udel.edu/at.

"In order to assess and to validate the results of our in silico analysis tools, we need actual high quality genome wide expression data," said Dr. Thomas Werner, chief executive officer and chief science officer of Genomatix. "In my opinion, the best available resource for such analysis is the MPSS(TM) data at the University of Delaware, derived from Lynx's proprietary technology."

Thomas J. Vasicek, Ph.D., Vice President of Business Development at Lynx, noted, "Such unanticipated uses of publicly available MPSS(TM) data are just the tip of the iceberg compared to what we expect to see when data such as the rice and mouse gene expression databases become available later this year.

"Dr. Blake Meyers at the University of Delaware conceived the Arabidopsis database that was used in this study and he has now begun to create a much larger MPSS(TM) gene expression database for rice with funds from a multimillion dollar National Science Foundation grant. This database will have huge implications for scientists worldwide who study rice and other related crop plants," added Dr. Vasicek. "Similarly, the National Institutes of Health have contracted with Lynx to generate a broad survey of gene expression in mouse tissues. This database will reside on numerous bioinformatics servers around the world and will provide a tremendous boon for medical research."

About Genomatix

Genomatix GmbH is a systems biology company that for more than 15 years has focused on computer-aided analysis of gene regulatory networks. Genomatix offers software, databases and services aimed at understanding gene regulation at the molecular level. More than 15,000 researchers in industry and academia around the world use Genomatix tools to understand how the molecular mechanisms of gene regulation work. For more information, visit the Genomatix web site at www.genomatix.de

About MIPS

The Munich Information Center for Protein Sequences (MIPS) is part of the GSF-National Research Center for Environment and Health. MIPS is focused on genome-oriented bioinformatics and, in particular, the systematic analysis of genome information, including the development and application of bioinformatics methods in genome annotation, expression analysis and proteomics. MIPS supports and maintains a set of generic databases as well as the systematic comparative analysis of microbial, fungal, and plant genomes. For more information, visit MIPS' Web site at http://mips.gsf.de.

About University of Delaware

Located in Newark, Delaware, the University of Delaware was founded in 1743 and is a state-assisted, privately controlled institution, with more than 16,000 undergraduates and nearly 3,000 graduate students. It is the major research university in Delaware. The Delaware Biotechnology Institute (DBI) is a statewide collaboration among universities, state government, and the private sector that houses faculty from diverse University of Delaware departments. It was founded to help establish Delaware as a center of excellence in biotechnology and the life sciences.

About Lynx

Lynx is a leader in the development and application of novel genomic analysis solutions. Lynx's MPSS(TM) instruments 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 the identification of differentially expressed genes, the potential success of collaboration arrangements, the addition of new collaborations and agreements 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, and its Quarterly Report on Form 10-Q for the period ended March 31, 2004. Lynx does not undertake any obligation to update forward-looking statements.