News

For Immediate Release

Nanogen and Epoch Biosciences Complete Merger

December 17, 2004

SAN DIEGO, CA and BOTHELL, WA -- Nanogen, Inc. (Nasdaq: NGEN) and Epoch Biosciences, Inc. announced today that they have completed their merger transaction, creating an advanced diagnostics company with the ability to address customer needs spanning the research, clinical reference laboratory and point-of-care markets. The molecular diagnostic products of the combined company address customer needs ranging from single, real-time tests to complex molecular tests performed on Nanogen's advanced microarray systems. The merger enlarges the company's existing product line with the addition of 25 real-time analyte specific reagent products and other technologies for genetic analysis from Epoch Biosciences.

The combined company is expected to enjoy the benefit of having strong operating synergies in sales and marketing due to the shared customers and common customer base. The enlarged product portfolio will provide Nanogen's direct sales force with more solutions to meet customer needs and the ability to develop deeper customer relationships, permitting a better utilization of the company's existing infrastructure. Additional benefits are expected through the elimination of duplicate general and administrative activities.

The merger follows Nanogen's acquisition of SynX in April 2004. In each case, Nanogen is seeking to build its product line in order to differentiate itself as a leading provider of both molecular and proteomic diagnostic products. The SynX acquisition offered Nanogen access to the point-of-care market with its pipeline of complementary products that are initially focused on cardiac related health conditions. The Epoch merger enhances the molecular diagnostic product offerings and adds numerous large customers. The Epoch merger will result in an immediate increase in revenue for Nanogen. During the first nine months of 2004, Epoch had revenues of approximately $6.3 million.

"The combination of Epoch and Nanogen is a continuation of our strategy to build critical mass," said Howard Birndorf, chairman and chief executive officer of Nanogen. "This merger will allow us to better leverage our infrastructure, will offer immediate benefits to our customer base and will immediately contribute to revenue growth."

William Gerber, president and chief executive officer of Epoch Biosciences stated, "The addition of Nanogen's direct sales force should accelerate the adoption of Epoch products by clinical and research laboratories, and the combined organization's broad product line can better address the growing demands of the molecular diagnostics market."

Nanogen has a market capitalization of approximately $350 million at current market prices and is expected to have approximately $50 million in cash at the end of the fourth quarter 2004. Approximately 13.6 million shares of Nanogen stock were issued to complete the merger, the lower end of the previously negotiated exchange ratio.

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