Pyrosequencing AB announces first customer in high throughput DNA sequencing program

PYROSEQUENCING AB ANNOUNCES FIRST CUSTOMER IN HIGH THROUGHPUT DNA SEQUENCING PROGRAM - Swedish consortium for functional genomics will use PTP for SNP analysis Uppsala, Sweden, February 5, 2001- Pyrosequencing AB (SSE:PYRO A), a developer, manufacturer and marketer of DNA sequencing systems for applied genetic analysis, signed the first customer in its high throughput sequencing program, the Company announced today. The Preferred Technology Program (PTP ), a customized high throughput sequencing solution based on Pyrosequencing technology, was purchased by the newly founded Swedish consortium for functional genomics. The Wallenberg Consortium North (WCN) plans to use PTP to analyze single nucleotide polymorphisms (SNPs) associated with human and veterinary diseases. PTP for functional genomics studies of human disease will be the subject of a presentation at the Advances in Genome Biology and Technology (AGBT) meeting on February 4-6, at Marco Island, Florida. The WCN was established to bring together research in applied genomics, proteomics and bioinformatics at the Royal Institute of Technology (KTH) in Stockholm, the Karolinska Institute in Stockholm, the University of Uppsala, the University of Stockholm, and the University of Umeå in Sweden. "PTP enables us to immediately scale up our SNP analysis capabilities, a goal that is sure to accelerate our genomics research," said Joakim Lundeberg, Ph.D., Director of the KTH Genome Center and Professor of Molecular Biotechnology at KTH. "What is particularly attractive about PTP is its highly customized offering which meets our specific needs- from sample preparation robotics through to SNP scoring. Going forward, it also allows us to ramp up our capacity to analyze samples using the same Pyrosequencing technology." Pyrosequencing's PTP is a high throughput SNP analysis system based on 384 well microplates and the same patented 'sequencing by synthesis' technology as the Company's PSQ 96 System, a 96 well format launched last year. In addition to the software and reagent kits, the PTP also includes sample preparation robotics, for a fully automated operation that can score up to 100,000 SNPs per day. "Signing our first PTP customer so early in the year confirms that our high throughput program is the ideal solution for those looking to increase DNA sequencing and analysis capabilities, while rapidly moving from PCR to scored SNP," stated Erik Walldén, President and CEO of Pyrosequencing AB. "PTP is a truly collaborative offering in which we work closely with customers like the Wallenberg Consortium to assess their sequencing needs and customize our product to meet special requirements. We anticipate that the demand for PTP will grow among those academic institutions, pharmaceutical, genomics, and agbiotech companies who are moving toward more large scale applied genetic analysis." The purchase agreement also provides for the Wallenberg Consortium North to serve as a reference site for customers who are interested in gaining a better understanding of the practical applications and benefits of PTP, as well as obtaining hands-on experience in using the system. Financial arrangements of the PTP purchase were not disclosed. Walldén added, "We are particularly interested in the WCN's focus on cardiovascular research since Pyrosequencing has intellectual property in the application of SNPs and drug response for cardiovascular disease. We believe this position may provide us with a clear pathway into the clinical diagnostics market." Pyrosequencing continues to receive orders for its PSQ 96 System, which has rapidly penetrated the European, U.S., and Japanese markets. The product performs rapid and accurate, reproducible SNP analysis, and offers a scalable cost-effective solution for SNP analysis and Tag sequencing- the analysis of short DNA sequences used for genetic identification. PSQ 96 Systems include a sequencing instrument, software, and reagent kits necessary to conduct SNP analysis. Customers of the PSQ 96 include AstraZeneca, Harvard Center for Cancer Prevention and the National Institutes of Health (NIH). The Wallenberg Consortium is funded by the Knut and Alice Wallenberg Foundation and is comprised of nine universities and institutes. Together with the Swedish government, the Consortium has invested more than $200 million to be used for functional genomics research over the next five years. The Wallenberg Consortium North consists of the Royal Institute of Technology (KTH) in Stockholm, the Karolinska Institute in Stockholm, the University of Uppsala, the University of Stockholm and the University of Umeå in Sweden. About Pyrosequencing AB Pyrosequencing AB develops, manufactures and sells complete applied genetic analysis systems based on its Pyrosequencing@ technology, a simple-to-use DNA sequencing technique for accurate and consistent analysis. In the post-genome era, Pyrosequencing's technology addresses the increasing demand for applied genetic analysis across various markets, including research and routine clinical testing, as well as large-scale customized industrial applications, such as drug development by pharmaceutical companies. The Company's growing list of customers includes AstraZeneca, SmithKline Beecham, the National Institutes of Health and DuPont Agriculture. The Company is headquartered in Uppsala, Sweden with North American operations located in Massachusetts. Pyrosequencing AB also has sales offices and distribution partners in the United Kingdom, Germany, France, Spain, Portugal, Italy, BeNeLux, Switzerland, Scandinavia, Eastern Europe, and Japan. Pyrosequencing AB is listed on the OM Stockholm Exchange. The Company's Web site is WWW.PYROSEQUENCING.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," "anticipate," "should," "planned," "estimated," and "potential," among others. These forward-looking statements are based on Pyrosequencing'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 9911 X106 ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2001/02/05/20010205BIT00810/bit0001.doc http://www.bit.se/bitonline/2001/02/05/20010205BIT00810/bit0002.pdf