Companies to Collaborate on Diagnostic Products for Early Cancer Detection,
                    Classification, and Treatment Response

    BASEL, Switzerland, BERLIN and SEATTLE, March 18 /PRNewswire/ --
Epigenomics and Roche announced today a broad three-year collaboration to
develop a range of molecular diagnostic and pharmacogenomic cancer products
based on Epigenomics' DNA-methylation technologies. DNA Methylation is a
natural "switch" that controls gene expression giving rise to distinct
patterns in cells including cancer and other diseased cells. Based on these
methylation patterns, cancer can be detected and classified from tissue and
bodily fluids, such as blood serum or urine samples.
    Under the terms of the agreement, Roche will make an upfront payment of
Euro 4 million and in addition provide R&D funding, milestone payments and
royalties on product sales. Both partners estimate that if all products are
successfully launched, the total value of the agreement could exceed
Euro 100 million.
    The collaboration comprises the development of diagnostics products for
use in early detection of cancers from major sites (e.g. colon, breast,
prostate), their characterization (e.g. aggressive versus non-aggressive
tumors) and prediction of treatment response to particular anti-cancer drugs.
Epigenomics will be responsible for marker discovery, identification and pre-
validation. Epigenomics' DNA methylation technologies will be incorporated
into Roche's existing and future PCR platforms (PCR: polymerase chain
reaction) and into the recently licensed Microarray Technology. Diagnostic
test development, clinical trials, product manufacturing, regulatory
submissions and all sales and marketing worldwide are to be conducted by
Roche.
    "We are very enthusiastic about this collaboration. Roche is already the
world leader in cancer therapies and with this alliance we will complement our
position in the diagnostics field. The products that are being developed as
part of this collaboration address the urgent need for earlier detection of
cancer in bodily fluids by more accurate screening tests, as well as
identifying those patients who need chemotherapy and most likely respond to
particular cancer therapies," says Heino von Prondzynski, Head of Roche
Diagnostics and member of Roche's Corporate Executive Committee. "As the
worldwide leader in in vitro Diagnostics we are committed to identify diseases
early in order to improve treatment and enhance patients' quality of life. The
alliance with Epigenomics will help us to remain at the forefront of the
molecular diagnostics market and support our activities to pursue a market
that could be greater than 3 billion Swiss francs ten years from now for our
divisional cancer care program."
    Alexander Olek, CEO of Epigenomics, adds: "This collaboration validates
Epigenomics' DNA methylation technology and product development approach. By
underlining the synergy between our in-house units, Diagnostics and Pharma
Technology businesses, it allows us to pursue our vision of personalizing
medicine. With the emerging trend of the pharmaceutical industry moving
towards administering therapy only with a specific diagnostic test, we feel
that the partnership with Roche Diagnostics solidifies Epigenomics' position
as a leader in this field."

    DNA Methylation and Diagnostic Applications
    DNA methylation is a natural phenomenon whereby a methyl chemical group is
attached to the cytosine base of DNA. The pattern of DNA methylation is one of
the primary biological mechanisms that controls gene expression or activity.
As the methyl group is either present or not, the pattern on any strand of DNA
can be digitized and easily interpreted. Measuring the differences in DNA
methylation patterns of diseased and healthy conditions provides a reliable,
sensitive and convenient way of identifying disease. For example, bodily fluid
samples (e.g. blood serum or urine) can be used to reveal whether that person
has cancer. Using a tissue sample from this individual, the DNA methylation
patterns can be interpreted to show what type of cancer it is and most
importantly guide physicians on the most appropriate way to treating it.

    Roche is the world leader in oncology treatment
    Roche Diagnostics offers a broad portfolio of tumor markers for prostate,
colorectal, liver, ovarian, breast, stomach, pancreas and lung cancer, as well
as a range of molecular oncology tests running on the LightCycler. Within its
Integrated Cancer Care Unit the company develops new tests which will have a
significant impact on disease management of cancer patients in the future.
The franchise of its pharmaceuticals Division includes MabThera (non-Hodgkin's
lymphoma), Xeloda (colorectal cancer, breast cancer), Herceptin (breast
cancer), NeoRecormon (anaemia in various cancer settings), Roferon-A
(leukaemia, Kaposi's sarcoma, malignant melanoma, renal cell carcinoma) and
Kytril (chemotherapy and radiotherapy-induced nausea). The franchise accounted
in 2002 for sales of more than 5 billion Swiss francs (+33%).

    About Roche
    Headquartered in Basel, Switzerland, Roche is one of the world's leading
research-oriented healthcare groups in the fields of pharmaceuticals and
diagnostics. Roche's products and services address prevention, diagnosis and
treatment of diseases, thus enhancing well-being and quality of life. In 2002
Roche's core businesses recorded sales of 26.5 billion Swiss francs and
employed some 61,900 people worldwide. Roche's Diagnostics Division, the world
leader in in vitro diagnostics with a uniquely broad product portfolio,
supplies a wide array of innovative testing products and services to
researchers, physicians, patients, hospitals and laboratories world-wide. For
further information, please visit our website http://www.roche.com.

    About Epigenomics
    Epigenomics is committed to significantly improving the treatment of
cancer and other complex diseases by developing novel diagnostic and
pharmacogenomic products based on DNA methylation. By detecting and
interpreting DNA methylation patterns, the "on" and "off" signs for genes,
Epigenomics can create a digitized readout (Digital Phenotype(R)) for each
cell. The comparison of a patient's cells against healthy and abnormal
reference samples enables an exact diagnosis of disease at a very early stage
and provides physicians with essential information to help guide an
appropriate therapy. The combination of diagnosis and therapy, based on this
information and robust proprietary technology, is "personalizing" medicine.
Epigenomics is supported by a network of renowned academic researchers and
clinicians, with expertise in the fields of cancer and DNA methylation. The
company has its headquarters in Berlin, Germany, and a wholly owned subsidiary
in Seattle, USA. For further information, please visit our website at
http://www.epigenomics.com.

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