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

To: tuck who wrote (1525)	10/25/2001 7:51:16 AM
From: nigel bates	Read Replies (1) \| Respond to of 1728

SANTA CLARA, Calif, and SUNNYVALE, Calif., Oct. 25 /PRNewswire/ -- Affymetrix, Inc. (Nasdaq: AFFX - news) and Hyseq, Inc. (Nasdaq: HYSQ - news) announced today the comprehensive settlement of all existing litigation between the two companies that began in March of 1997. The companies also announced that they have formed a collaborative venture to accelerate the development and commercialization of new opportunities in the DNA array market. Key components of the settlement include: -- Hyseq and Affymetrix will dismiss all pending lawsuits in the U.S. District Court. -- Affymetrix and Hyseq have acknowledged the validity and enforceability of the patents asserted in these lawsuits. -- Both companies will cease their involvement in pending patent interference proceedings before the U.S. Patent Office. Under the terms of the settlement arrangement, Affymetrix gains access to a commercial license to Hyseq's array related patents. In return, Hyseq gains access to an internal use license under certain Affymetrix intellectual property for its pharmaceutical business. Hyseq has also entered into a BiotechAccess(TM) supply agreement for GeneChip® technology. Financial terms of the settlement were not disclosed. The settlement is subject to court approval. To pursue the high-density universal array based applications, Hyseq and Affymetrix have formed and will jointly fund a collaborative venture known as N-Mer, Inc. This venture will be a wholly owned subsidiary of Callida Genomics, Inc., which is a newly formed majority-owned subsidiary of Hyseq. Universal arrays are arrays that can be designed without reference to specific DNA sequences. N-Mer will have access to both sequencing-by-hybridization technology from Hyseq and Affymetrix' GeneChip technology, the standard platform for array-based experiments. Affymetrix will be the exclusive array and system supplier and is authorized to be the exclusive agent for distribution of products resulting from the venture. ``We are pleased to have settled the long-standing patent litigation in a way that will provide new products, new markets, and added value for both companies,'' said Ted W. Love, M.D., President and CEO of Hyseq. ``Affymetrix is an excellent partner for our new venture because of their proven ability to manufacture custom-made, high quality probe arrays,'' he said. ``We are delighted to have these matters behind us and look forward to working with Hyseq to drive new product applications,'' said Susan E. Siegel, President of Affymetrix. ``By combining Affymetrix' DNA array manufacturing expertise with Hyseq's universal arrays, we can take advantage of this unique opportunity to further expand the DNA array field. ''