Incyte Genomics Chairman Predicts New Phase of Genomics-Driven Discovery as Science Harnesses Knowledge of Gene Transcripts and Proteins Palo Alto, CA March 7, 2001 - Genomics science is entering a new phase in which progress will depend more heavily on an understanding of the human gene transcripts and proteins, said Randal Scott, Ph.D., Chairman of Incyte Genomics, Inc. (Nasdaq: INCY). This is a phase that promises to bring an accelerating pace of discovery of new drugs and diagnostics. Although many scientists now believe the human genome contains fewer gene loci than previously thought, it also appears that the number and complexity of the gene transcripts and proteins - and the interactions between them and the genome - are far more complex than previously thought, Dr. Scott said in a keynote address at Cambridge Healthtech Institute's meeting today in San Francisco. "At Incyte, we have been working for a decade to fill out the pieces to the puzzle, by building LifeSeq® Gold the world's largest and most comprehensive library of human gene transcripts and proteins, and linking that information to the genome," said Dr. Scott. "Now, as genomic science prepares industry for its next step in therapeutic and diagnostic development, scientists worldwide are working from this foundation to accelerate the development of products that will have a significant effect on people's lives. Incyte, as a leader in information and intellectual property relating to the gene transcripts and proteome, has a central role to play." "Incyte Genomics is well positioned to power this accelerating transformation and to capitalize on its opportunity," Scott said. He said Incyte contributes an intellectual property base of patents that embrace thousands of gene transcripts and proteins - as well as relationships through which leading researchers are gaining access to detailed information about human gene transcripts and proteins. "Proteins are the core source of valuable data for disease understanding and drug development," Dr. Scott said. "With a strong gene transcript data base as a foundation, that is backed by over 10 million actual biologically active cDNA clones, Incyte has assembled microarray, SNP, and proteomics capabilities - the three legs of the scientific stool necessary to help lead the next wave of discovery in commercially viable drugs derived through genomics science." Dr. Scott said this revolution in health care is likely to progress far more quickly than many expect because of three fundamental forces. "Two of these forces mirror the forces that, earlier, transformed the computer industry. We are seeing an application to biology of principles similar to Moore's Law: the growing power and decreasing costs of electronic hardware and information processing. Whether DNA sequencing, microarray expression analysis, or SNP analysis, the cost will come down dramatically in coming years," he said. "In addition, progress in biology is accelerating in response to the advanced utility derived from the networking of biologists world wide - an effect similar to Metcalfe's Law of computer networking. One indication is the creation of networks of databases and information systems that allow increasingly rapid exchange of biological information," said Dr. Scott. "Biology also is being transformed by a third principle - the law of finite biology. Human biology involves a finite number of genes, transcripts and proteins; as we identify each, we can more quickly and more easily put the remaining pieces of the puzzle together - and the completion of the puzzle comes faster as we near the end of the process," said Dr. Scott. "Genomics is at the stage of development that, in the computer industry, produced the mainframe computer. Just as the PC and the Internet altered the course of civilization, the application of genomic technology will change our understanding of health and disease," Dr. Scott added. A transcript of Dr. Scott's talk will be available on March 9, 2001 in the Investor Relations section of the Incyte Genomics web site at www.incyte.com. 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 www.incyte.com. Except for the historical information contained herein, the matters set forth in this press release, including statements as to the acceleration of drug and diagnostics discovery as a result of the knowledge gained from gene transcripts and proteins, the decrease in coming years of costs of DNA sequencing and of microarray expression or SNP analysis, the stage of genomic technology and its effect on drug discovery and the understanding of health and disease, and the role of and potential benefits to Incyte Genomics in the discovery of drugs and diagnostics, 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, including the impact of other scientific discoveries and technological advances, the effects of competition and technological developments on costs of sequencing, microarrays, and SNP analysis, the ability of Incyte to provide products and services that meet market needs, the impact of competition and alternative technologies, processes and approaches, the ability of scientists to derive useful data from gene transcript and protein analyses, and other risks detailed from time to time in 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.