GENESOFT AND UNIVERSITY OF GENEVA ANNOUNCE LICENSE

SOUTH SAN FRANCISCO, CA, USA, and GENEVA, SWITZERLAND April 11, 2001

GeneSoft Inc. and the University of Geneva announced today that they have entered into an exclusive worldwide license under patent applications based on research conducted in the laboratories of Dr. Ulrich Laemmli, Professor of Molecular Biology at the University of Geneva.

The research of Professor Laemmli s team relates to DNA-binding molecules that can change the structure of chromatin (a complex between DNA and proteins) at targeted locations. Because chromatin structure affects the availability (or not) of DNA for gene expression, the University of Geneva s technology offers the potential of developing drugs based on such molecules for treating diseases caused by the abnormal expression of genes.

The scientific community around the world has greeted this work with great enthusiasm. A review in Cell (November 22 issue, 2000, page 695) refers to the results of Professor Laemmli s team as ' astonishing ' and ' another milestone on the way to therapeutic drugs that bind DNA. '

The University of Geneva s team has published its work in two adjacent articles in Molecular Cell (November 2000 issue, pages 999 and 1013). The papers describe small DNA-binding compounds that can specifically bind structural elements of chromatin (DNA satellites) and thereby alter the transcriptional activity of neighboring genes. This was experimentally demonstrated in an animal model by feeding fruit fly larvae compounds that induced particular changes in the flies phenotype, e.g. alterations in the colour of their eyes.

The University of Geneva welcomes this agreement as the result of a 10 years s effort led by Prof. Laemmli s team and supported by the Swiss National Science Foundation as well as the Louis-Jeantet Foundation, a non-profit institution dedicated to promoting excellence in life sciences. Prof. Jean-Dominique Vassalli, Vice-President for research said ' This work shows that basic research may be the source of very promising applications. We believe Genesoft is an excellent partner to develop therapeutic drugs based on our technology in the marketplace '.

David B. Singer, Chairman and CEO of GeneSoft, said, ' Professor Laemmli has an extraordinary record of scientific accomplishment throughout his distinguished career. We feel fortunate to have his expertise, creativity and the University of Geneva s technology deployed to assist us in the development of our novel pharmaceuticals. '

GeneSoft is pioneering the discovery and development of DNA-nanobinderÔ chemistry, a new class of low molecular weight, DNA sequence-specific drugs that are designed to treat gene-mediated disease. With the sequencing of the human genome, the opportunities to regulate genes involved in human diseases are increasing rapidly across a wide range of therapeutic areas. The company has active anti-infective and oncology product development programs, and expects to introduce its first novel antibiotics into clinical trials in 2002. Professor Laemmli also serves as a member of GeneSoft s Scientific Advisory Board.