PRESS RELEASE: Nanogen to Close Array Business - Will Focus on Two High Growth Product Lines

Nanogen to Close Array Business - Will Focus on Two High Growth Product Lines

SAN DIEGO (November 12, 2007) – Nanogen, Inc. (Nasdaq: NGEN), developer of advanced diagnostic products, announced today that the Company plans to close commercial operations of the array business and reduce staff by approximately 20%.  Today’s announcement follows the decision in September to investigate strategic alternatives for the array business.

“Our analysis of alternatives for the array business has not resulted in any financially meaningful opportunities” said David Ludvigson, Nanogen’s President and COO.  “We have determined that the best way to meet our commitment to improving financial performance for our shareholders is to focus on our real-time PCR and point-of-care testing businesses.  Eliminating the investment and operating costs for the array product group will result in an operating expense reduction of approximately $15 million.  This significant improvement in the bottom line will be achieved with minimal impact to our revenues.”

“The future of our company and our mission to be a leading diagnostics company has not changed with this decision,” stated Howard Birndorf, CEO of Nanogen, “The acquisitions we have made in the past three years have given us a good foothold in both the molecular diagnostics labs and the point-of-care rapid testing market.  We believe the long term growth prospects for both of these product areas will drive significant future value for the company.”
 
The restructuring resulted in a $6.9 million non-cash charge to third quarter financials for inventory and assets related to the array business.  An additional cash charge of approximately $2.5 million is anticipated in the fourth quarter related to employee severance costs.

About Nanogen, Inc.
Nanogen’s advanced technologies provide researchers, clinicians and physicians worldwide with improved methods and tools to predict, diagnose, and ultimately help treat disease. The company's products include real-time PCR reagents and kits based on the Company’s proprietary MGB Eclipse® probe technology and a line of rapid point-of-care diagnostic tests used in urgent care settings to aid in the diagnosis of heart failure conditions. Nanogen’s ten years of pioneering research involving nanotechnology holds the promise of miniaturization and continues to be supported for its potential for diagnostic and biodefense applications. For additional information please visit Nanogen’s website at www.nanogen.com.

Nanogen Forward-Looking Statement
This press release contains forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements, including whether restructuring of the array business would reduce operating cost and improve financial performance, whether acquisitions of other businesses would result in revenue growth in the real-time PCR and point-of-care testing market, and other risks and uncertainties discussed under the caption "Factors That May Affect Results" and elsewhere in Nanogen’s Form 10-K or Form 10-Q most recently filed with the Securities and Exchange Commission. These forward-looking statements speak only as of the date hereof. Nanogen disclaims any intent or obligation to update these forward-looking statements.