Incyte Reports Financial Results for First Quarter of Fiscal 2001 - Revenues up 25% Palo Alto, CA, April 25, 2001 – Incyte Genomics, Inc. (Nasdaq: INCY), the leading genomic information company, today reported its consolidated financial results for the first quarter ended March 31, 2001. Revenue for the first quarter increased 25% to $51.1 million versus $40.8 million for the comparable quarter in 2000. For the quarter, database and partnership program revenues were $37.0 million, a 24% increase over the same quarter in 2000. Custom genomics revenues for the quarter were $14.1 million, a 31% increase over the same quarter in 2000. These revenue increases reflect the strong synergies between Incyte's genomic database and partnership business and demand for custom genomic products and services. "This is our fourth consecutive quarter with revenues increasing at an annual rate of over 20%. We continue to focus on the revenue growth of both the database and partnership programs as well as the custom genomic businesses while expanding our discovery programs and related intellectual property generation," said Roy A. Whitfield, Chief Executive Officer for Incyte. The net loss for the quarter ended March 31, 2001 was $10.3 million, or $0.16 per diluted share compared with $8.2 million, or $0.13 per diluted share, for the same quarter in 2000. The net loss for the quarter includes a $2.4 million extraordinary gain resulting from Incyte's repurchase of $8.0 million par value of its convertible subordinated notes. Also included in the net loss for the quarter is a "cumulative effect of an accounting change." At the beginning of fiscal 2001 Incyte adopted SFAS 133, "Accounting for Certain Derivatives and Certain Hedging Activities." This resulted in a cumulative gain of $2.3 million for the valuation of warrants held in other companies as of the beginning of the year and a $0.6 million charge in "Interest and Other Expense" related to a change in the value of these same warrants for the quarter. Loss before the extraordinary gain and adoption of SFAS 133 for the quarter ended March 31, 2001 was $14.4 million, or $0.22 per diluted share. Per share data have been adjusted to reflect the stock split, in the form of a 100% stock dividend, that was paid in August 2000. Research and Development expenses for the quarter ended March 31, 2001 increased 30% to $53.0 million over the comparable quarter of the prior year. The increase reflects Incyte's efforts to expand its intellectual property portfolio, increase content in the database products and "step-up" its activity in discovery programs and related intellectual property generation. "We continue to be effective at leveraging our intellectual property position through revenue licensing programs," said Mr. Whitfield. "Several companies, including Agilent, Chiron, Corning and Gene Logic, have licensed during the first quarter intellectual property from Incyte's industry-leading portfolio." Selling, General and Administrative expenses for the quarter ended March 31, 2001 were $16.6 million compared with $14.8 million for the same period in 2000. The growth in expenditures primarily resulted from the expansion of the Company's sales and marketing capabilities. "The first quarter was a solid beginning of the year for Incyte. We are pleased with the strength of our revenues, and that both our top and bottom lines as well as our cash flow were better than we anticipated," said John Vuko, Incyte's Chief Financial Officer. Company management will host a conference call on Wednesday, April 25, 2001 at 2:00 p.m. PDT to discuss the company's results. The dial in number for the conference call will be (973) 633-1010. A replay of the conference call will be available through May 2, 2001 (12:00 midnight PDT). The replay dial in number for U.S. and International callers will be (973) 341-3080 and the PIN number access code will be 2533357. 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 role of Incyte's products, proprietary technology and database information in third-party research programs and the extent to which genome-based research will assist researchers in their drug discovery efforts, 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 extent to which genomic databases are utilized in pharmaceutical research and development; the ability of Incyte to provide products and services that meet market needs; the impact of competition and alternative technologies, processes and approaches; and other risks detailed from time to time in Incyte's SEC reports, including its Annual Report on Form 10-K for the year ended December 31, 2000. These forward-looking statements speak only as of the date hereof. Incyte disclaims any intent or obligation to update these forward-looking statements.