Incyte Genomics Reports Financial Results for the First Quarter of Fiscal 2002 Palo Alto, CA, May 1, 2002 – Incyte Genomics, Inc. (Nasdaq: INCY), today reported its consolidated financial results for the first quarter ended March 31, 2002. The Company reported revenues associated with the information product line (inclusive of database subscriptions, partnership programs and licensing activities) of $27.0 million for the quarter ended March 31, 2002 compared to revenues of $37.0 million for the same period of the previous year. The decrease in these revenues is consistent with previously announced annual guidance and strategies. Total first quarter 2002 revenue for Incyte was $29.0 million, compared to $51.1 million for the comparable quarter in 2001. The first quarter revenue included $2.0 million in revenue associated with the wind-down of discontinued product lines that was announced in the fourth quarter of 2001. Total revenues decreased due to the discontinued custom genomics product lines that represented $14.1 million in revenues for the first quarter of 2001 as well as the reduced revenues associated with the information product line. "Overall, we made solid progress in the first quarter," said Paul A. Friedman, M.D., Chief Executive Officer of Incyte. "We continued to attract and hire top flight scientists for our therapeutic discovery and development operation. Additionally, our information product line generated revenues and cash flow that were in line with our expectations." The net loss, before an extraordinary gain and the cumulative effect from an accounting change, for the first quarter was $13.4 million, or $0.20 per share, compared to $15.0 million, or $0.23 per share, for the same quarter in 2001. The net loss for the current quarter decreased primarily as a result of the elimination of expenses associated with the restructure announced in 2001 partially offset by the increase in the expenses of the East Coast therapeutic discovery and development operations. Including an extraordinary gain and the cumulative effect from an accounting change, the prior year's net loss for the quarter was $10.3 million or $0.16 per share. At March 31, 2002, cash and short-term investments totaled $491.7 million compared to $507.9 million as of December 31, 2001. Operating costs and expenses decreased to $47.9 million compared to $72.5 million for the same period in 2001. This decrease was primarily the result of expenses eliminated in the discontinuation of custom genomics product lines. This decrease was partially offset by increased therapeutic discovery and development expenses not present in 2001. Therapeutic Discovery and Development "One of our major accomplishments for the quarter, in addition to hiring nearly 50 top pharmaceutical researchers, was the leasing of a modern research facility in the Stine-Haskell Research Center in Newark, Delaware. We have moved in and are conducting experiments," added Dr. Friedman. "In keeping with our commitment of providing a more detailed plan for moving forward in the May or June time period, I will be presenting at the upcoming Deutsche Bank Alex Brown Healthcare Conference May 7th at 4:30PM eastern time," said Dr. Friedman. "This presentation will incorporate our strategy to integrate our information product line assets into our therapeutic discovery and development efforts and will be webcast. The webcast can be accessed at the following internet locations: www.db.com/conferences and select Heath Care or CCBN's investor site at www.companyboardroom.com." Company management will host a conference call on Wednesday, May 1, 2002 at 2:00 p.m. PDT to discuss the company's results. The domestic dial in number for the conference call will be 800-231-5571 and the international dial in number will be 973-872-3462. A replay of the conference call will be available through May 7, 2002 (12:00 midnight PDT). The replay dial in number for both U.S. and International callers will be 973-341-3080 and the PIN number access code will be 3233857. A webcast will be distributed over CCBN's Investor Distribution Network to both institutional and individual investors. Individual investors can listen to the call through CCBN's individual investor center at www.companyboardroom.com or by visiting any of the investor sites in CCBN's Individual Investor Network such as America Online's Personal Finance Channel. Institutional investors can access the call via CCBN's password protected event management site, StreetEvents (www.streetevents.com). Incyte Genomics, Inc. has the largest commercial portfolio of issued United States patents covering human, full-length genes and the proteins they encode and is leveraging its leading intellectual property and genomic information position to be a leader in discovering and developing therapeutic small molecules, secreted proteins and antibodies. In addition, Incyte has also 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 licenses pharmaceutically relevant intellectual property. These offerings facilitate pharmaceutical and biotechnology researchers in their 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. Except for the historical information contained herein, the matters set forth in this press release, including statements as to Incyte's presentation at the upcoming Deutsche Bank Alex Brown Healthcare Conference and topics of such presentation, Incyte's ability to leverage its intellectual property position to become a leader in therapeutic small molecule, secreted protein and antibody discoveries, and whether Incyte's product offerings will continue to facilitate the drug discovery and development efforts of pharmaceutical and biotechnology researchers, 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 competition and of technological advances and the ability of Incyte to compete against parties with greater financial or other resources, the effectiveness and extent of utilization of databases in pharmaceutical research and development, the ability to introduce new products and product upgrades in a timely manner, the ability of Incyte to implement successfully its plans to ramp up its therapeutic discovery efforts, changes in Incyte's business plan, Incyte's ability to obtain patent protection for its discoveries and to continue to be effective in expanding its patent coverage; 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, 2001. Incyte disclaims any intent or obligation to update these forward-looking statements. - Tables Follow - ###