VARIAGENICS Announces Licensing Agreements For MTHFR Patents.

Business Editors & Health/Medical Writers

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CAMBRIDGE, Mass.--(BUSINESS WIRE)--Jan. 16, 2003

VARIAGENICS, INC. (Nasdaq: VGNX), an emerging molecular diagnostics company and leader in pharmacogenomics, today announced that it has granted worldwide licenses to GeneOhm Sciences, Sciona, and Tm Bioscience relating to VARIAGENICS' MTHFR (methylenetetrahydrofolate reductase) patent rights. Under the terms of the agreements, VARIAGENICS has granted the companies worldwide non-exclusive rights to commercialize several test formats to detect polymorphisms within the MTHFR gene for applications including the assessment of thrombo-embolic disease risk. The agreements stipulate that VARIAGENICS retains the rights to the development of pharmacogenomic applications in oncology and other disease areas.

All three companies recognize the value of MTHFR genotyping for preventive medicine and for assuring optimal individual patient care, and expect significant growth in individual genetic testing within the cardiovascular field. "This license is an important step for us in building a strong molecular diagnostic portfolio and providing key tools for true personalized medicine," said Peter Klemm, Ph.D., President and Chief Executive Officer of GeneOhm Sciences. "We are excited about the prospect of providing patients with low cost, rapid response tests having extremely high specificity in predicting individual risk for predisposition to thrombo-embolic events. Early assessment of risk factors like MTHFR can improve therapy for many patients with deep vein thrombosis, patients making pre-surgery decisions, and those at risk during pregnancy, assuring optimal patient care."

"The MTHFR gene is one of the core elements of our Nutrigenomic and Genetic Diagnostic panels," said Dr. Anthony Leung, Sciona's Commercial Director. "Research indicates that individuals appreciate knowing their genetic status and its nutritional implications and that they understand the significance of the well-established links between metabolism, disease and wellbeing. We are excited about the potential these panels will have in personalized medicine and expect to see tremendous growth in demand as the potential benefits for preventive health are recognized."

"In developing the Tm Bioscience Tag-It(TM) Mutation Detection kit for common coagulation mutations, many of our customers requested the ability to test for the two common mutations in the MTHFR gene as part of the coagulation panel," said Greg Hines, President and CEO of Tm Bioscience. "This in-licensing agreement, allows us to provide commercial diagnostic laboratories with this tailor-made option within our existing coagulation kit."

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 GeneOhm

GeneOhm Sciences uses the flow of electric current through DNA to detect genetic mutations. This proprietary chip-based technology allows clinicians to identify a patient's genetic mutations accurately, sensitively and rapidly with a simple and inexpensive reader. GeneOhm Sciences was formed in 2001 with technology developed over a decade by Professor Jacqueline K. Barton at the California Institute of Technology. The Company believes its platform will become the primary system that clinicians use to focus human genomic information on individual patient care. For more information, please visit the Company's website at www.geneohm.com.

About Sciona

Sciona is the leading genetic diagnostics and pharmacogenomics company in the United Kingdom. Combining a wealth of research, Sciona has developed a range of genomic panels, supported by proprietary algorithms and informatics to give customers specific advice on lifestyle factors such as diet through to clinical areas, e.g. drug use and disease prevention. Sciona has developed a world class expertise in the deployment of genetic profiling to provide personalized wellbeing advice - BodyBenefits(TM). The Company has developed the most sophisticated system for the delivery of personalized wellbeing and medical advice, and is now ready to bring its first products to market in the US and Europe. Sciona is proud to take a lead in this exciting new industry and use the science of tomorrow to enable a real difference to be made in the healthcare arena. For more information, please visit Sciona at www.sciona.com.

About Tm Bioscience

Tm Bioscience is a DNA-based diagnostics company developing and manufacturing a suite of genetic tests. Tm Bioscience's product pipeline includes tests for genetic mutations related to hematology, cystic fibrosis, toxicology and other debilitating genetic disorders. Tm Bioscience is an ideal partner for companies, academics or clinical labs with novel gene content who want to capture near term value through the development of marketable tests. Tm Bioscience is located in Toronto, Ontario. The Company has recently launched the Tag-It(TM) Mutation Detection kit, which provides accurate, low cost, high-throughput results for laboratories on common coagulation mutants. Additional information can be found at www.tmbioscience.com.

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.