Gene Logic Provides Financial Guidance and Plan for Company Growth; CE

Gene Logic Provides Financial Guidance and Plan for Company Growth; CEO Details Potential for Drug Repositioning and Selection Business and Targets for Assessing Progress

    Business Editors/Health/Medical Writers
    BIOWIRE2K

    GAITHERSBURG, Md.--(BUSINESS WIRE)--March 17, 2005--Gene Logic Inc. (NASDAQ:GLGC) today released Company financial expectations for 2005 and direction for the Company's business efforts through 2007. During a Company-sponsored teleconference/webcast at 9:00 a.m. today, Mark D. Gessler, Gene Logic president and CEO, will discuss financial and business goals, and detail how the drug repositioning and selection technology recently acquired from Millennium Pharmaceuticals is expected to ultimately help the Company generate additional value.

    For 2005, Gene Logic has two primary objectives:

--	For the genomics/toxicogenomics and preclinical contract research businesses, the Company goal is to grow revenues by at least 10% and to make significant progress in moving this business towards profitability.
--	In addition, the Company intends to make significant investments in building its drug repositioning and selection business, an emerging area of interest for pharmaceutical customers.

    Gene Logic has begun working on repositioning--that is, finding new indications for--one Millennium Pharmaceuticals compound that was discontinued in clinical trials, but had no safety issues. Terms of that agreement include fees, milestones, and royalties for successfully repositioning the compound. Additionally, Gene Logic has begun repositioning work on six other compounds from an undisclosed pharmaceutical customer. Terms of that agreement are undisclosed.
    Specific Company expectations for the genomics/toxicogenomics and preclinical contract research businesses are:

    -- Gene Logic expects its revenue to grow to $83.5-$85.5 million
    in 2005, an increase of at least 10% over 2004.

    -- The Company anticipates revenue for the first quarter of 2005
    to be somewhat lower than the comparable period for 2004. Gene
    Logic expects its revenue for the remaining three quarters to
    be higher than the comparable periods for 2004.

    -- The Company expects losses for this portion of its business to
    be in the range of $12-$14 million in 2005.

    Company expectations for its new drug repositioning and selection business are:

    -- For 2005, Gene Logic anticipates investing approximately $14
    million, including research and development costs and selling
    and marketing expenses, to develop this new portion of its
    business. The Company expects to maintain this level of
    investment through at least 2007.

    -- Gene Logic expects to finalize terms for at least two
    additional repositioning partnerships in 2005. Each of these
    partnerships is expected to involve multiple compounds per
    agreement, and would be expected to contain opportunities for
    significant milestone and royalty payments for Gene Logic.

    -- The Company anticipates beginning repositioning efforts on 20
    compounds in 2005, and will continue to build this pipeline of
    customer compounds through 2007 and beyond.

    In total, for 2005, Gene Logic expects revenues to be $83.5 to $85.5 million and losses for the entire Company to be approximately $26-$28 million, including the $14 million that the Company expects to invest in its new drug repositioning and selection business. Gene Logic also anticipates that in 2007, the Company will achieve profitability during the year, and its revenues will exceed $100 million. The Company expects its cash position to be approximately $70 to $75 million by the end of 2005 and that it will be generating cash in 2007. The Company's earnings estimates do not include the impact of changing rules concerning expensing of stock-based compensation.
    Mr. Gessler commented, "Since our inception in 1997, we have made a number of transitions as we have evolved in response to rapidly changing technologies and customer needs. In our quest to become the most integrated drug development partner for the pharmaceutical industry, we have expanded our mission yet again by adding innovative drug repositioning and selection technologies that can be used to determine a compound's most effective use and the ability to repurpose compounds that are already marketed or have failed for reasons unrelated to toxicity. These technologies meet an increasing need in the pharmaceutical industry for drug repositioning--finding new indications for drug candidates. These technologies are a powerful addition to our genomics, toxicogenomics and preclinical contract research businesses and could fundamentally change the way Gene Logic is valued. Last, but certainly not least, we are making significant progress toward near-term profitability in our genomics and preclinical contract research businesses. We look forward to describing our progress in future quarters."

    Gene Logic Overview

    Gene Logic aspires to be the most valued drug development partner for the pharmaceutical industry. Gene Logic applies its broad and unique mix of technologies, talent and methodologies to work on behalf of its partners to enable pharmaceutical and biotechnology companies to make more informed, more reliable and more predictive decisions at each point in the highly complex and costly drug development process. For more information, visit www.genelogic.com or call toll-free - 1/800/GENELOGIC.

    Safe Harbor Statement

    This news release contains forward-looking statements that involve significant risks and uncertainties, including those discussed below and others that can be found in our Annual Report on Form 10-K for the year ended December 31, 2004 (filed on March 16, 2005) and in subsequent filings made with the Securities and Exchange Commission. Gene Logic is providing this information as of the date of this news release and does not undertake any obligation to update any forward-looking statements contained in this document as a result of new information, future events or otherwise.
    No forward-looking statement can be guaranteed and actual results may differ materially from those we project. The Company's results may be affected by: the extent of utilization of genomics, toxicogenomics, bioinformatics, preclinical contract research and drug repositioning and selection by the pharmaceutical and biotechnology industry in research and product development; our ability to retain existing and obtain additional domestic and international customers in a timely manner; capital markets and other economic conditions adversely affecting the purchasing patterns of pharmaceutical and biotechnology companies; levels of industry research and development spending; risks relating to the development of genomics and toxicogenomics-based services and their use by existing and potential customers ; our reliance on sole source suppliers; our ability to limit our losses and become profitable; our ability to timely supply customers with additional data as required under some of our genomics and toxicogenomics services contracts; risks relating to the fact that our contracts with our Japanese customers will be payable beginning in 2005 in foreign currency and may be subject to fluctuations due to changes in currency exchange rates; our ability to continue to successfully manage growth of our preclinical contract research operations, including increasing facility capacity and achieving optimal use of facilities and facility capacity and adequate quality of studies; our ability to comply with, and to provide studies that are compliant with, regulatory requirements, including those of the FDA, DEA, and AAALAC; the potentially depressive effect of sales of Gene Logic stock issued to the former TherImmune shareholders in the merger; our ability to attract and retain key employees; our continued access to necessary human and animal tissue samples; the availability of large animals for clinical testing; the impact of technological advances and competition; our ability to enforce our intellectual property rights and the impact of intellectual property rights of others; outsourcing trends in the pharmaceutical and biotechnology industries; competition within the drug development services outsourcing industry; our ability to limit losses from certain fixed price contracts for preclinical contract research services; rapid technological advances that may make our genomics and toxicogenomics services, preclinical contract research services and/or drug repositioning and selection services less competitive; risks associated with valuation of assets representing acquired businesses; and our ability to successfully develop and commercialize the Horizon technologies acquired from Millennium Pharmaceuticals, Inc. Note: Gene Logic, GeneExpress, ToxExpress, BioExpress, ASCENTA and the Gene Logic logo are registered trademarks used by Gene Logic Inc.

--30--JS/ph*

CONTACT: Gene Logic Inc. Investor contact: Robert G. Burrows, 301-987-1824 rburrows@genelogic.com or Media contact: Christopher Culotta, 301-987-1752 cculotta@genelogic.com

KEYWORD: MARYLAND INDUSTRY KEYWORD: BANKING PHARMACEUTICAL MEDICAL BIOTECHNOLOGY CONFERENCE CALLS SOURCE: Gene Logic Inc.

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