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Biotech / Medical : AFFYMETRIX (AFFX) -- Ignore unavailable to you. Want to Upgrade?

To: jpbrody who wrote (946)	8/5/1999 11:38:00 AM
From: Barbara Bullard	Read Replies (1) \| Respond to of 1728

The obvious reason for the move in AFFX today? Affymetrix Announces Glaxo Wellcome's Election to Convert Its Series AAPreferred Stock Into Affymetrix Common Stock SANTA CLARA, Calif., Aug. 5 /PRNewswire/ -- Affymetrix, Inc. (Nasdaq: AFFX) announced today that Glaxo Wellcome has elected to convert its shares of Series AA Preferred Stock into 1.26 million shares of Affymetrix Common Stock. The Series AA conversion was at the election of Glaxo Wellcome in lieu of Affymetrix exercising its "soft-call" redemption option pursuant to the rights and preferences of the Series AA Preferred Stock. As a result of the conversion of the Series AA Preferred Stock and a recent sale of 1 million shares of Common Stock by Glaxo Wellcome, its total ownership of common stock in Affymetrix has increased to approximately 7.8 million shares (approximately 30% of outstanding Common Stock of Affymetrix). "In April 1998, Glaxo Wellcome purchased $50 million of Series AA Preferred Stock convertible into Affymetrix Common Stock at $40 per share. As a result of the strong performance of Affymetrix' share price, we have elected to convert these shares," commented John Coombe, Finance Director of Glaxo Wellcome plc. "We remain enthusiastic about the prospects for Affymetrix and, whilst market conditions and circumstances can alter, we currently have no further plans to change our ownership position," added Coombe. "Glaxo Wellcome's decision to increase its investment in Affymetrix last year came at a time when the capital markets were deemed to be unreceptive to a public offering," commented Ed Hurwitz, Vice President and Chief Financial Officer of Affymetrix. "Glaxo Wellcome's investment enabled Affymetrix to move forward aggressively with its manufacturing and operational scale-up plans and we are delighted that the performance of our stock has enabled us to retire this security and eliminate future dividend obligations to Glaxo Wellcome," added Hurwitz. Affymetrix has developed and intends to establish its GeneChip(R) system as the platform of choice for acquiring, analyzing and managing complex genetic information in order to improve the diagnosis, monitoring and treatment of disease. The Company's GeneChip system consists of disposable DNA probe arrays containing gene sequences on a chip, reagents for use with the probe arrays, a scanner and other instruments to process the probe arrays and software to analyze and manage genetic information. Additional information on Affymetrix and GeneChip technology can be found at www.affymetrix.com. All statements in this press release that are not historical are forward-looking statements. Such statements are subject to risks and uncertainties that could cause actual results to differ materially for Affymetrix from those projected, including, but not limited to, uncertainties relating to technological approaches, product development, manufacturing, and market acceptance, uncertainties related to cost and pricing of Affymetrix products, dependence on collaborative partners, uncertainties relating to sole source suppliers, uncertainties relating to FDA and other regulatory approvals, competition, risks relating to intellectual property of others and the uncertainties of patent protection. These and other risk factors are discussed in Affymetrix' Annual Report on Form 10-K for the year ended December 31, 1998, Form 10-Q for the quarter ended March 31, 1999 and Form S-3 filed July 12, 1999. Affymetrix expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Affymetrix' expectations with regard thereto or any change in events, conditions, or circumstances on which any such statements are based. Affymetrix, GeneChip and the Affymetrix logo are registered trademarks used by Affymetrix, Inc. SOURCE Affymetrix, Inc. CO: Affymetrix, Inc.; Glaxo Wellcome plc; Glaxo Wellcome Americas, Inc. ST: California