VARIAGENICS Announces Licensing Agreement With Celera Diagnostics for MTHFR Patents.

Business Editors and Health/Medical Writers

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CAMBRIDGE, Mass.--(BUSINESS WIRE)--Jan. 14, 2003

VARIAGENICS, INC. (Nasdaq:VGNX), an emerging molecular diagnostics company and leader in pharmacogenomics, today announced that it has granted a worldwide license relating to its MTHFR (methylenetetrahydrofolate reductase) patent rights to Celera Diagnostics, a joint venture between the Applied Biosystems Group (NYSE:ABI) and the Celera Genomics Group (NYSE:CRA) of Applera Corporation. In this agreement, VARIAGENICS has granted Celera Diagnostics worldwide non-exclusive rights to commercialize products for the detection of MTHFR polymorphisms for applications including assessment of thromboembolic disease risk (including stroke and myocardial infarction). The products are expected to be sold in the form of analyte specific reagents and potentially later as in vitro diagnostic devices. VARIAGENICS retains the rights to develop pharmacogenomic applications in oncology and other disease areas. Additional terms of the agreement were not disclosed.

"We are pleased that Celera Diagnostics, a leader in the growing field of molecular diagnostics, has taken a license to our MTHER patents," said Jay Mohr, President and Chief Business Officer of Variagenics. "The significant value of this important biological marker, across a broad range of therapeutic areas, continues to be demonstrated through high profile licensing agreements of this sort."

The MTHFR patent rights were acquired from McGill University by VARIAGENICS in 1999. Since then, VARIAGENICS and McGill University have actively collaborated in the discovery and development of pharmacogenomic markers related to this gene. A number of research studies associate variations in the MTHFR gene with cardiovascular disease, and the gene is also believed to be involved in central nervous system disorders, osteoporosis, disorders influenced by folic acid metabolism, and cancer. Earlier prediction and/or detection of these diseases are a key focus for medical researchers, pharmaceutical companies, and treating physicians. In June 2000, the U.S. Patent and Trademark Office issued U.S. Patent 6,074,821 titled "cDNA for Human Methylenetetrahydrofolate Reductase" and in April 2001 issued US Patent 6,218,120 titled "Methods for detecting human methylene tetrahydrofolate reductase allelic variants." Both patents, which were assigned to McGill University, were licensed exclusively to VARIAGENICS under the terms of the original 1999 agreement. These patents cover the identification of MTHFR gene polymorphisms in a sample of DNA from an individual. The polymorphisms covered in these patents include the common polymorphism, C677T, which has been correlated with reduction in protein activity, leading to elevated homocysteine and increased patient risk. Polymorphism detection can be used to diagnose MTHFR deficiency or to identify an individual possessing an MTHFR allele variant. The polymorphisms can be associated with cardiovascular disorders, cancer (neuroblastoma, colorectal carcinoma), coronary and arterial disorder, osteoporosis, neurological disease (neural tube defects), and disorders influenced by folic acid metabolism.

About VARIAGENICS

VARIAGENICS, INC. develops molecular diagnostic tests by identifying genetic markers associated with response to cancer therapies, with the goal of optimizing patient care. The Company analyzes genetic variation, including single nucleotide polymorphisms (SNPs), haplotypes, loss of heterozygosity, and expression levels in normal and tumor cells. VARIAGENICS is developing molecular diagnostic tests through both biopharmaceutical collaborations and its own internal research programs.

For more information, please visit the Company's website at www.variagenics.com.

This press release may contain forward-looking statements, including statements regarding the effect of pharmacogenomics on therapeutic outcomes and the delivery of healthcare and the role that the Company will play in the field of pharmacogenomics. Such statements are based on management's current expectations and are subject to certain factors, risks and uncertainties that may cause actual results, events and performance to differ materially from those referred to or implied in such statements. These risks are identified in VARIAGENICS' Annual Report on Form 10-K for the fiscal year ended December 31, 2001. The Company does not intend to update any of the forward-looking statements after the date of this release to conform these statements to actual results or to changes in our expectations, except as required by law.