Symyx Technologies Enters into New Agreement with Merck for Discovery Tools Biocatalysis Workflow.

Business Editors/Health/Medical Writers/High-Tech Writers

SANTA CLARA, Calif.--(BUSINESS WIRE)--Jan. 15, 2004

Symyx Technologies, Inc. (Nasdaq:SMMX) announced today that it has entered into a new agreement with Merck & Co., Inc. (NYSE:MRK) for the development and delivery of a Symyx Discovery Tools(R) workflow. This newest workflow will extend Symyx's high-throughput technologies into the area of biocatalysis, with the development of a workflow that enables scientists to perform and analyze up to 400 automated enzyme reactions a day. Although the advantages of using enzymes as biocatalysts for the synthesis of small molecule drugs have been recognized for some time, they are currently underutilized in manufacturing due to the significant time and effort required to identify the enzyme and reaction conditions suitable for a commercial process. This high-throughput capability is expected to enable Merck scientists to reduce by a factor of five to ten the time, material, and resources required to screen enzymes and reaction conditions for a particular synthesis.

The biocatalysis workflow will be the fifth Symyx Discovery Tool purchased by Merck, including three of which were developed under agreement with Merck. Symyx has previously worked with Merck on the development of the Symyx Polymorph/Pre-Formulations workflow that uses proprietary parallel crystallization technology and software for the rapid screening of drug candidates for crystalline forms, e.g. salts and polymorphs. The two companies have also worked together on a Process Optimization workflow that uses proprietary parallel pressure reactor technology and software for the rapid screening of catalysts and reaction conditions for synthetic transformations, including hydrogenations. Symyx completed and delivered both of these systems to Merck, along with a Symyx Solubility System for high throughput testing of drug candidates for solubility, and a parallel pressure reactor workflow, PPR(R)-48, for use in the later stages of process development. Symyx expects to deliver the new biocatalysis workflow to Merck in the latter part of 2004. All of these Symyx Discovery Tools workflows are used to improve the speed and effectiveness of preclinical drug development.

Symyx develops and applies high-throughput experimentation to the discovery of innovative materials for the chemical, life science, electronics, consumer goods, and automotive industries. Symyx works with companies seeking to transform their search for better products and processes through research collaborations, Discovery Tools(R) sales, and license of materials, intellectual property, and software. Information about Symyx, including reports and other information filed by the Company with the Securities and Exchange Commission, is available at www.symyx.com.

Certain statements in this press release are forward-looking and involve risks and uncertainties. These may be identified by the use of forward-looking words or phrases such as "believe," "expect," "intend," "anticipate," "should," "planned," "forecast," "estimated," and "potential," among others. These forward-looking statements are based on Symyx's current expectations. The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for such forward-looking statements. In order to comply with the terms of the safe harbor, Symyx notes that a variety of factors could cause actual results and experience to differ materially from the anticipated results or other expectations expressed in such forward-looking statements. The risks and uncertainties that may affect the operations, performance, development, and results of Symyx's businesses include but are not limited to (1) market acceptance of Symyx's products and services; (2) uncertainties relating to the pace, quality or number of discoveries of new materials; (3) the dependence on collaborators to continue relationships and to successfully commercialize products; (4) uncertainties of patent protection and litigation; (5) future growth strategy; (6) general economic conditions in the United States and in major European and Asian markets; (7) exposure to risks associated with export sales and operations; (8) natural disasters, power failures and other disasters; (9) and other factors that might be described from time to time in Symyx's filings with the Securities and Exchange Commission, including our most recently filed Form 10-K annual report and any subsequently filed Form 10-Q quarterly reports.