Oxagen and Incyte to Partner on Osteoporosis Gene and Therapeutic Target Discovery Program Palo Alto, CA, and Abingdon, UK January 29, 2001 - Incyte Genomics, Inc. (Nasdaq: INCY), the leading genomic information company and Oxagen Limited, the genomics company based in Abingdon, UK, announced today they have entered into a collaborative research agreement to investigate the genetics of osteoporosis. The collaborative program will test for genetic association between key candidate genes and bone mineral density, fracture and other osteoporosis-related phenotypes that are available in Oxagen's Family Osteoporosis (FAMOS) sample collection and database. The program will include testing of novel genes and SNPs identified through Incyte's proprietary databases in order to discover genes underlying increased osteoporosis risk. In addition, Oxagen will have access to the full LifeSeq® Gold database for use in all of its other disease areas. Financial terms are not disclosed. Incyte's extensive database resources will facilitate gene-centric association studies leading to target discovery and validation. Incyte has identified a comprehensive set of potential candidate genes for osteoporosis by mining its LifeSeq Gold sequence database and performing gene expression experiments using Incyte's Human Foundation Series Microarrays. Nearly 50,000 verified clones of both known and Incyte proprietary genes are represented on these LifeArray chips, making them ideal for the discovery of novel drug targets. This is complemented by Incyte's extensive polymorphism discovery resources, which include more than 90,000 in silico SNPs within the LifeSeq® Gold sequence database, as well as a laboratory-based high-throughput SNP discovery technology platform. Through these resources, Incyte has identified polymorphisms within the osteoporosis candidate genes. With the aim of identifying novel, therapeutic targets for osteoporosis, Oxagen has established the FAMOS study group involving leading figures in osteoporosis research based in Oxford, Cambridge, London, Southampton, Aberdeen, Glasgow, Rotterdam and Aarhus. This group has helped Oxagen to generate the world's largest clinical resource for osteoporosis gene discovery and to create a comprehensive phenotype database, containing over 150,000 data points. The Incyte candidate genes and SNPs will be analyzed against 3,600 samples from Oxagen's osteoporosis family collections, low and high bone mineral density populations and fracture case patients. The companies will also further analyze linkage regions containing osteoporosis-predisposing genes identified as a result of whole genome scans already carried out by Oxagen. Dr. Trevor Nicholls, Chief Executive Officer of Oxagen, commented: "We are tremendously excited by the prospect of combining our family-study results with Incyte's extensive genomics resources. Oxagen is perhaps the only company with access to sufficient depth of well-characterized clinical samples in osteoporosis to give a study of this type real statistical power. The results of this collaboration could lead to genuine breakthroughs in novel tests and treatments for this debilitating disease. Moreover, access to the extensive Incyte database should significantly accelerate our progress in all our disease areas and increase our competitiveness." "The combination of Incyte's database with the disease-association data offered by Oxagen will allow discovery of the function of genes and genetic variations that relate to osteoporosis," noted Roy Whitfield, Chief Executive Officer of Incyte Genomics. "Furthermore, the resultant information on disease pathways will provide a valuable source of validated drug targets and underscores Incyte's commitment to elevate therapeutic discovery as a critical component of our business." Osteoporosis is a disease characterized by low bone density and deterioration of bone tissue. Often referred to as the "silent thief", bone loss occurs without symptoms and typically results in an increased risk of bone fracture. Although any bone can be affected, fractures usually occur in the hip, spine, and wrist. Osteoporosis is a serious global health problem and is the fourth leading cause of disease-related death of women. The disease affects 75 million people in the USA, Europe and Japan combined. It is estimated that by the middle of the next century the number of osteoporosis sufferers will double in the West, but may increase six-fold in Asia and South America. No current treatment is capable of significantly increasing bone density. Early prediction of lifetime risk, together with combination therapies, designed to modulate bone loss and bone formation simultaneously, would expand the potential market even further. Incyte Genomics, Inc. is the leading provider of an integrated platform of genomic technologies designed to aid in the understanding of the molecular basis of disease. Incyte develops and markets genomic databases and partnership programs, genomic data management software, microarray-based gene expression services, related reagents and services. These products, programs and services assist pharmaceutical and biotechnology researchers with all phases of drug discovery and development including gene discovery, understanding disease pathways, identifying new disease targets and the discovery and correlation of gene sequence variation to disease. For more information, visit Incyte's web site at http://www.incyte.com. Oxagen has rapidly established itself as a leading player in the study of the complex disease genetics, conducting programs in cardiovascular disease, inflammatory disease and metabolic and endocrine disorders, including osteoporosis. Oxagen aims to identify new therapeutics and diagnostics by capitalizing on insights from genetics and specializes in using large-scale family studies to understand the association of genes and genetic variations with disease. The Company believes that this approach is the most effective way to provide fundamental insights into the molecular mechanisms of disease. In addition to furthering the discovery of disease-related genes, Oxagen's database of clinical cases and controls and its increasing collection of validated candidate genes offers a valuable resource to other life sciences companies wishing to understand the impact of genetic variation on the discovery, development and marketing of therapeutics throughout the product cycle. Oxagen has formed collaborations with more than 30 leading clinical research groups in the UK, continental Europe and worldwide. Oxagen is running gene discovery programs in the areas of cardiovascular disease (in partnership with AstraZeneca), inflammation (asthma, inflammatory bowel disease and psoriasis) and metabolic and endocrine disorders (osteoporosis, endometriosis, polycystic ovary syndrome and autoimmune thyroid disease). The Company has established extensive databases of phenotype and genotype records in these diseases which, combined with the growing list of candidate genes and proprietary intellectual property arising from the analysis of the samples, offer numerous partnering opportunities for companies seeking novel target discovery programs and pharmacogenomic validation. Oxagen was established in April 1997, initially funded by the Wellcome Trust, Oxford University and private investors 3i Group plc and Advent Funds.In December 2000 the Company completed a significant private financing round, raising £30m net through the issue of new convertible preference shares. The Company has established an extensive technical and analytical capability and has some 85 members of staff all based in purpose-built facilities in Milton Park, south of Oxford. Oxagen recently supplemented its SNP genotyping capabilities through a 3 year agreement to access APBiotech's SNiPer™ high-throughput platform which has added significantly to the Company's technology base. For more information on Oxagen please see our website at http://www.oxagen.co.uk. Except for the historical information contained herein, the matters set forth in this press release are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially. For a discussion of factors that may cause results to differ, see Incyte's SEC reports, including its Quarterly Report on Form 10-Q for the quarter ended September 30, 2000. Incyte disclaims any intent or obligation to update these forward-looking statements.