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Orchid Cellmark to purchase ReliaGene.

Orchid Cellmark, Inc. (Princeton, NJ), a leading worldwide provider of identity DNA testing services, announced that it has signed a definitive purchase agreement to acquire the outstanding stock of ReliaGene Technologies, Inc. (New Orleans, LA) for a purchase price of $5.6 million in cash and $3.0 million worth of shares of Orchid Cellmark restricted common stock. The purchase price is subject to adjustment based on ReliaGene's working capital. A portion of the purchase price will be held in escrow subject to satisfying certain conditions including the seller's indemnification obligations. The transaction is expected to close at the end of October. ReliaGene is a prominent and well respected provider of forensic and paternity DNA analysis services and had 2006 annual revenue of $7.5 million.

"The acquisition of ReliaGene fits the criteria we are seeking in accelerating the growth of our business through acquisitions. There is essentially no customer overlap between the two companies and we believe the combined forensic casework, CODIS and paternity laboratory testing volumes should increase our operational efficiencies," said Thomas Bologna, President and Chief Executive Officer of Orchid Cellmark. Mr. Bologna further stated, "We believe this acquisition will begin to be accretive in the second half of 2008."

Dr. Sudhir Sinha, founder of ReliaGene said, "Having watched the progress Orchid Cellmark has made over the last year and knowing this business well, I strongly believe the strength of the combined companies will be very beneficial to both Orchid Cellmark and ReliaGene customers." Dr. Sinha further added, "As a believer in the strength of the combined companies, and what the combination affords our customers, I look forward to working with Tom and the Orchid Cellmark team in integrating ReliaGene into Orchid Cellmark."

Orchid Cellmark is a leading international provider of DNA testing services for human identity testing and agricultural applications. In the human identity area, Orchid Cellmark provides DNA testing services for forensic investigation, paternity testing and family relationship analysis and security applications. In the agriculture field, Orchid Cellmark provides DNA testing services for selective trait breeding. Orchid Cellmark's strong market positions in these segments reflect the company's accredited laboratories in the United States and U.K., its innovative genetic analysis technologies and expertise and the world-renowned Cellmark brand that has been associated with exceptional quality, reliability and customer service for nearly two decades.

Orchid Cellmark, Inc.,

+1-609-750-2324

www.orchid.com
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Publication:BIOTECH Patent News
Date:Sep 1, 2007
Words:395
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