For Immediate Release
September 08, 2004

Contact:
Carolyn Hawley
Canale Communications for Orion Genomics
619-849-5375
carolyn@canalecomm.com

Orion Genomics and North Carolina State University Extend Tobacco Genome Initiative

ST. LOUIS, MO September 8, 2004 - Orion Genomics, a "second code" biotechnology company, announced today that the first stage of its agreement with North Carolina State University (NCSU) to sequence large parts of the tobacco genome has been completed, and that the agreement has been extended. The extension more than doubles payments to Orion under the company's subcontract for a portion of the $17.6 million provided to NCSU by Philip Morris USA as part of the 4 ½-year Tobacco Genome Initiative. Led by NCSU investigators, the Initiative aims to provide public and private plant researchers with tobacco genetic information.

"In the initial phase of the tobacco sequencing project, we compared several different methodologies for the discovery of most of tobacco's genes," said Dr. Charles Opperman, professor of plant pathology and genetics at NCSU and leader of the Initiative. "We've determined that Orion's GeneThresher technology rapidly and accurately separates coding from the so-called 'junk DNA' that makes up most of the tobacco genome."

Under the extended agreement, the Initiative will now apply Orion's GeneThresher™ technology to the development of an overall map of the tobacco genome that will identify up to 90 percent of tobacco's genes.

"The successful completion of the first discovery phase of the tobacco genome sequencing project validates Orion's GeneThresher technology in another important plant species," said Nathan Lakey, CEO of Orion Genomics. "The commercialization of GeneThresher is an integral part of our business strategy, and we are pleased at GeneThresher's continuing success as the most rapid and cost-effective plant genome sequencing technology available."

About the Tobacco Genome Initiative
The Tobacco Genome Initiative is funded by Philip Morris USA and centered in the College of Agriculture and Life Sciences at North Carolina State University to leverage the college's leadership position in genomic sciences. Begun in December 2002, the goal of the Initiative is to make a physical map of the tobacco genome and to sequence as many genes as possible by 2007.

Biotechnology at NC State
North Carolina State University, located in Raleigh, has emerged as a national leader in biotechnology research. Currently there are more than 170 faculty whose research interests lie within the broad scope of biotechnology. These faculty are from 24 departments in the five colleges of Agriculture and Life Sciences, Engineering, Natural
Resources, Physical and Mathematical Sciences, and Veterinary Medicine.

About Orion Genomics