Incyte Reports Financial Results for Second Quarter of Fiscal 2001 with Revenues up 22%, Its Fifth Consecutive Quarter of Double-Digit Sales Growth Palo Alto, CA, July 19, 2001 -- Incyte Genomics, Inc. (Nasdaq: INCY), the leading genomics information company, today reported its consolidated financial results for the second quarter ended June 30, 2001. Revenue for the quarter increased 22% to $56.1 million versus $46.0 million for the comparable quarter in 2000. This brought the first half revenues to $107.2 million, representing a 24% increase over the $86.8 million for the same period in 2000. Database and partnership program revenues increased 21% to $43.2 million for the quarter compared with $35.6 million for the same quarter in 2000. Custom genomics revenues for the quarter were $12.9 million, a 24% increase over the $10.4 million for the comparable quarter in 2000. The net loss for the quarter was $9.9 million, or $0.15 per diluted share, compared with $6.6 million, or $0.10 per diluted share, for the same quarter in 2000. For 2001, Incyte adopted SFAS 133, related to accounting for warrant activities. This resulted in a $1.8 million gain related to a change in the value of warrants held in other companies during the quarter. The net loss for the first half of 2001 was $20.2 million, or $0.31 per diluted share compared with $14.8 million, or $0.24 per diluted share for the same period in 2000. 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. "I am very pleased with the continuing strength of our business," said Roy A. Whitfield, Chief Executive Officer of Incyte. "Additionally, our focus on improving the operating efficiency of our company is paying off in our bottom line performance." Research and Development expenses for the quarter ended June 30, 2001 increased 16% to $52.2 million over the comparable quarter of the prior year. For the six months ended June 30, 2001, Research and Development expenses increased 23% to $105.1 million compared with $85.5 million for the same period in 2000. Selling, General and Administrative expenses increased in the quarter by 24% to $18.6 million compared with $15.0 million for the same period in 2000. For the first half of 2001 Selling, General and Administrative expenses increased 18% to $35.2 million compared with $29.8 million for the same period in 2000. Q2 Highlights: Incyte and Lexicon Genetics, Inc. entered into a strategic therapeutic discovery alliance for secreted proteins. In addition, the parties announced a collaboration for the co-promotion of the Lexicon LexVision™ database and Lexicon's subscription to Incyte's LifeSeq® Gold database. Incyte announced a collaboration with Odyssey Pharmaceuticals to functionally characterize human proteins encoded by Incyte proprietary gene transcripts. Incyte announced multi-year subscriptions to LifeSeq Gold by Eisai, Co. and Genomic Health, Inc. Incyte entered into a strategic partnership with Secant Technologies through which Secant will license, further develop and co-market the Genomic Knowledge Platform. Incyte announced a collaboration with Iconix Pharmaceuticals to develop and commercialize the next generation chemogenomic and multi-array gene expression information product. Company management will host a conference call on Thursday, July 19, 2001 at 2:00 p.m. PDT to discuss the company's results. The dial in number for the conference call will be (973) 628-9554. A replay of the conference call will be available through July 26, 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 2678052. Incyte Genomics, Inc. has developed the leading 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. In addition, Incyte has the largest portfolio of issued patents covering human full-length genes and the proteins they encode and is leveraging its intellectual property position to be a leader in therapeutic discoveries. For more information, visit Incyte's web site at http://www.incyte.com. Except for the historical information contained herein, the matters set forth in this press release, including statements as to the Company's focus on expanding the growth of certain of its programs and on its operating efficiencies, 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 Incyte's ability to obtain and retain customers, the impact of competition and of technological advances, the effectiveness and extent of utilization of databases in pharmaceutical research and development, expenses relating to and the results of the Company's litigation, the ability to implement technological improvements, the ability to introduce new products and product upgrades in a timely manner, changes in the Company's business plan, changes in consumer demand for the Company's products, the success of the Company in negotiating future licensing transactions, 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 March 31, 2001. Incyte disclaims any intent or obligation to update these forward-looking statements. - Tables Follow - ###