SANTA CLARA, Calif., Oct. 27 /PRNewswire/ -- Applied Imaging Corp.
(Nasdaq: AICX), a leading developer of cytogenetic systems for the diagnosis
of chromosomal disorders, announced today that it has entered into an
exclusive worldwide licensing agreement with the University of Cambridge for
the commercialization of a DNA-probe technology recently developed by
Cambridge researchers.
    The technology, known as Cross Species Color Banding, will be utilized by
Applied Imaging in an effort to develop a range of research test reagents to
detect and analyze chromosomal aberrations in various species.  The Company
expects to develop an initial test kit for color banding analysis of human
chromosomes.
    Developed by a team of Cambridge researchers including Professor Malcolm
A. Ferguson-Smith, FRS, FRCPath, Dr. Johannes Wienberg and Dr. Stefan Muller,
Cross Species Color Banding represents an advance in the fluorescent in situ
hybridization (FISH) methods used for the identification of chromosomal
abnormalities that may be associated with various developmental abnormalities
and cancers.  It may also be useful for characterizing prenatal chromosomal
abnormalities.  Traditional chromosomal analysis (known as karyotyping)
involves the microscopic interpretation of monochromatic banding patterns for
each chromosome to determine whether genetic abnormalities may be present.
The interpretation of such subtle patterns relies heavily upon the expertise
of skilled cytogeneticists and is, at times, restricted by the limited amount
of information available in an exclusively black-and-white format.
    The Cross Species Color Banding method is expected to allow researchers to
determine the unique color banding patterns associated with specific
chromosomes and to identify possible rearrangements of genetic material among
chromosomes.  When used in conjunction with the automated imaging systems
produced by Applied Imaging, researchers may be able to more accurately
characterize certain banding patterns that may not have been readily
discernible using traditional methods.  Professor Ferguson-Smith commented,
"The unique color banding system we have developed should facilitate automated
karyotyping, and may improve the detection of complex chromosomal aberrations,
particularly in cancers, when used in conjunction with conventional
cytogenetic methods."
    Dr. Jack Goldstein, President and CEO of Applied Imaging, stated, "The
discovery by Professor Ferguson-Smith and his colleagues is of interest
because it marks the first time that DNA probes derived from species other
than humans (in this case, the great apes) have been shown to be useful in
characterizing human chromosomes.  We are pleased to be collaborating with the
University of Cambridge to make this technology available to medical
researchers throughout the world."
    Applied Imaging is also sponsoring a scientific symposium to introduce
this new method to leading genetics researchers at the Annual Meeting of the
American Society of Human Genetics in Baltimore at the end of this month.
    "Developing this product coincides with Applied Imaging's commitment to
provide our customers with innovative solutions in the area of chromosomal
analysis and represents a first step in our efforts to add a reagent component
to our business," added Dr. Goldstein.
    Applied Imaging Corporation develops, manufactures and markets automated
clinical analysis systems used by laboratories for the diagnosis of prenatal,
cancers, and other genetic disorders.  The company markets its products
worldwide, and has more than 500 customer sites in over 30 countries.  Applied
Imaging is also developing a proprietary prenatal test for screening of
genetic abnormalities by isolating fetal cells from a routine maternal sample.
This new test is being developed to improve current prenatal screening
techniques by providing an accurate and cost effective procedure without the
risk of miscarriage associated with invasive prenatal testing.
    The foregoing contains forward-looking statements within the meaning of
Section 27A of the Securities Act and Section 21E of the Securities Exchange
Act.  Actual results could differ materially from those projected in the
forward-looking statements as a result of a number of factors, including the
inability to further develop the Cross Species Color Banding technology
because of technological, financial, or other limitations, the failure of the
technology to add to the chromosomal information available with current
methodologies, the lack of acceptance of the technology by the research
community, and the factors set forth in "Additional Risk Factors" in the
Company's Form 10-K for the year ended December 31, 1996, as filed with the
Securities and Exchange Commission.
    For more information about Applied Imaging, visit the AICX web site at
http://www.aicorp.com.

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