PRESS RELEASE: Gene Logic Establishes Agreement with Merck Serono

Gene Logic Establishes Agreement with Merck Serono to Discover New Development Paths for Multiple Clinical-Stage Drug Candidates

GAITHERSBURG, Md. -- Aug 23, 2007 - Gene Logic Inc. announced today that it has entered into a drug repositioning and development agreement with Merck Serono, a division of Merck KGaA of Germany, to seek alternative development paths for several Merck Serono drug candidates. All of these drug candidates were discontinued or de-prioritized in clinical trials for reasons other than safety.

The agreement provides for payment to Gene Logic of success-based milestones and royalties similar to those paid for development-stage in-licensing deals, discounted to account for Merck Serono's contribution as the originator of the compound. The agreement also provides Gene Logic the option to receive an exclusive license to any drug candidate for which Gene Logic identifies a new potential therapeutic use that Merck Serono chooses not to develop. If Gene Logic elects to obtain such a license, Merck Serono would be entitled to receive success-based milestone and royalty payments. 

Gene Logic's Drug Repositioning Program seeks to find alternative development paths for drug candidates with good safety records that have been de-prioritized or discontinued in clinical trials. The program offers pharmaceutical partners a novel approach to bolster their pipelines with high-quality drug candidates that originated from their own R&D efforts. Applying a diverse set of drug discovery technologies in parallel, Gene Logic's Drug Repositioning Program evaluates drug candidates for potential utility across a wide spectrum of disease indications.

Charles L. Dimmler, III, Gene Logic Chief Executive Officer and President, said, "Merck Serono is a world leader in reproductive health and has strong market positions in several other therapeutic areas. We look forward to applying our Drug Repositioning Program to complement their internal efforts to determine new uses for their clinical-stage, de-prioritized drug candidates. Our partnership with Merck Serono is our seventh drug development agreement, further substantiating the industry's recognition of our systematic approach to identifying novel therapeutic indications for drug candidates."

Gene Logic Drug Repositioning Overview

Gene Logic's indication discovery technologies are currently being used by a number of top pharmaceutical companies to attempt to reposition drug candidates, while its diverse portfolio of genomic based drug development services continues to enable numerous organizations and government agencies to make more informed, reliable and predictive decisions in the drug development process. Gene Logic is headquartered in Gaithersburg, Maryland, conducts additional research and development in facilities in Cambridge, Massachusetts, and has customer support operations in the U.S., Europe, and Asia. For more information, visit www.genelogic.com or call toll-free - 1/800/GENELOGIC.

Merck KGaA Overview

Merck of Darmstadt, Germany is a global pharmaceutical and chemical company with sales of EUR 6.3 billion in 2006, a history that began in 1668, and a future shaped by 35,091 employees in 62 countries. Its success is characterized by innovations from entrepreneurial employees. Merck's operating activities come under the umbrella of Merck KGaA, in which the Merck family holds an approximately 70% interest and free shareholders own the remaining approximately 30%. In 1917 the U.S. subsidiary Merck & Co. was expropriated and has been an independent company ever since.

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