Pyrosequencing AB and Mosaic technologies enter cross-license agreement to leverage DNA sequencing technologies

PYROSEQUENCING AB AND MOSAIC TECHNOLOGIES ENTER CROSS-LICENSE AGREEMENT TO LEVERAGE DNA SEQUENCING TECHNOLOGIES Uppsala, Sweden, and Waltham, MA, March 20, 2001-Pyrosequencing AB (SSE:PYRO A) and Mosaic Technologies, Inc. announced today that they have signed a cross-license agreement that provides access to the Companies' complementary DNA sequencing technologies. Under the terms of the agreement, Pyrosequencing gains co-exclusive rights to Mosaic's fluorescent detection technology. In exchange, Mosaic receives access to Pyrosequencing's 'sequencing by synthesis' technology to be used in combination with Mosaic's "sequencing on amplified polony array" technology. The license agreement will enable the companies to leverage their technology portfolios and develop new products for the applied genomics and gene-based clinical diagnostic markets. Financial terms of the deal were not disclosed. "Access to the Mosaic technology provides us with a simple and straight forward method for implementing our Pyrosequencing technology in new miniaturized platforms such as microfluidics and array formats," said Björn Ekström, Vice President and Chief Technology Officer at Pyrosequencing AB. "It also gives Pyrosequencing the ability to develop products with integrated sample preparation, potentially shorter cycle times and longer sequencing reads, and the opportunity to enter new market segments like expression profiling." Pyrosequencingtm technology is a simple-to-use DNA sequencing technique. Comprised of an enzymatic cascade and a chemiluminescent detection system, the 'sequencing by synthesis' method culminates in a light flash every time a unique position in the DNA strand is detected. The technology is used for accurate determination of DNA sequences and variations in genetic material. Commenting on the Mosaic agreement, Mr. Erik Walldén, President and CEO of Pyrosequencing AB, said that the new license is a step towards strengthening Pyrosequencing's position in the applied genomics market and it will enable the Company to advance its molecular diagnostics business. Mr. Wallden added that the deal also offers attractive opportunities for exploiting Pyrosequencingtm technology through collaborations with partners who have expertise in arrays and microfluidics. Michael E. Woehler, Ph.D., President and CEO of Mosaic Technologies, Inc. said "The unique combination of Mosaic's flourescent detection method and Pyrosequencing's 'sequencing by synthesis' technology offers several key competitve advantages in developing products for genomics research. This agreement provides us with a broad intellectual property base to commercialize products using array-based sequencing technology." The direct sequencing technology was developed at Harvard Medical School by George Church, Ph.D., Professor of Genetics at Harvard Medical School and Director of the Lipper Center for Computational Genetics. It is exclusively licensed within the field of array-based sequencing to Mosaic and links nucleotides to fluorscent dyes via a cleavable dithiol linker. About Pyrosequencing AB Pyrosequencing AB develops, manufactures and sells complete solutions for applied genetic analysis based on its proprietary Pyrosequencingtm technology, a simple-to-use DNA sequencing technique. In the post-genome era, Pyrosequencing's technology has established the Company as one of the leading suppliers of solutions for accurate, consistent DNA analysis in research institutions and pharmaceutical, genomics and agbiotech companies. For the analysis of single nucleotide polymorphisms (SNPs) the PSQtm96 System with SNP Software and Reagent Kits is used by customers such as AstraZeneca, GlaxoSmithKline, the Harvard Center for Cancer Prevention, the National Institutes of Health (NIH), and DuPont Agriculture. The Company's Sequence Analysis Software and Reagent Kits together with the PSQ 96 System are used for the identification of gene-specific DNA sequences for applications such as bacterial and viral typing where speed and ease of use are essential. The Company is headquartered in Uppsala, Sweden with North American operations located in Westborough, Massachusetts. Pyrosequencing AB also has sales offices and distribution partners in Europe, Japan and the Middle East. Pyrosequencing AB is listed on the OM Stockholm Exchange. The Company's web address is www.pyrosequencing.com. About Mosaic Technologies, Inc. Mosaic Technologies, Inc. is a genomics platform company founded in 1994 to exploit solid phase chemistry invented at MIT. The Company is currently developing and commercializing products for the genomics research and the gene based clinical diagnostics markets. Mosaic has developed and patented several platform technologies that have broad potential across these rapidly growing markets based on their ability to dramatically enhance the speed, accuracy and efficiency of purifying, amplifying and detecting DNA. Mosaic has five products in development, which it expects to commercialize over the next three years through corporate alliances. These genomic research products offer technologies to enhance DNA microarray performance and high throughput sequencing. Mosaic's gene-based diagnostic products include tests to ensure the safety of blood products. The Company's web address is www.mosaic- technologies.com Certain statements in this press release are forward-looking. These may be identified by the use of forward-looking words or phrases such as "believe," "expect," "intend," and "should," among others. These forward- looking statements are based on Pyro-sequencing'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, Pyrosequencing 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. Such uncertainties and risks include, but are not limited to, risks associated with management of growth and international operations (including the effects of currency fluctuations), variability of operating results, the commercial development of the DNA sequencing and genomics market, nucleic acid-based molecular diagnostics market, and genetic vaccination and gene therapy markets, competition, rapid or unexpected changes in technologies, fluctuations in demand for Pyrosequencing's products (including seasonal fluctuations), difficulties in successfully adapting the Company's products to integrated solutions and producing such products, and the Company's ability to identify and develop new products and to differentiate its products from competitors. FOR FURTHER INFORMATION CONTACT: Pyrosequencing AB Erik Walldén Theresa McNeely, Sr. Director President & CEO Investor and Public Relations erik.wallden@pyrosequencing.com tmcneely@pyrosequencing.com Phone: +46 18 565902 or 070-326 98 70 Phone: +1 508 389 1794 Mosaic Technologies, Inc. Michael E. Woehler, Ph.D. President & CEO mwoehler@mostek.com Phone: +1 781 890 7636 ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2001/03/20/20010320BIT01000/bit0001.doc http://www.bit.se/bitonline/2001/03/20/20010320BIT01000/bit0001.pdf