GENZYME: Genzyme and Millenium Biotherapeutics to develop therapeutic proteins § antibodies

MAR 17, 1999, M2 Communications - Genzyme Transgenics Corporation (Nasdaq: GZTC) and Millennium BioTherapeutics, Inc. (MBio), a majority-owned subsidiary of Millennium Pharmaceuticals, Inc. (Nasdaq: MLNM) today announced that they have signed a collaborative agreement to initiate two projects utilizing MBio's expertise in therapeutic drug discovery and Genzyme Transgenics Corporation's capabilities in the development of transgenically produced biotherapeutics.

Under the terms of the agreement, Genzyme Transgenics Corporation will provide its expertise to MBio for the development of certain of Millennium's advanced therapeutic proteins and antibodies. The companies will interact on an ongoing basis with respect to experimental design, data review and associated scientific functions. Financial terms of this agreement were not disclosed.

"This agreement provides Genzyme Transgenics Corporation additional resources and capabilities to advance its leadership position in the development of transgenics, the next generation of therapeutic production systems," said Sandra Nusinoff Lehrman, president and chief executive officer of Genzyme Transgenics.

"Our collaboration with Genzyme Transgenics Corporation could enable MBio to produce scaleable quantities of candidate proteins and antibodies, and allow us to advance aggressively toward clinical development," said John Maraganore, general manager of Millennium BioTherapeutics, Inc. "As we move forward in developing our products, this agreement could allow us to optimize cost of goods and obtain flexibility on capital investment, an important strategy for the commercialization of important new biotherapeutics."

Genzyme Transgenics Corporation applies transgenic technology to enable the development and production of recombinant proteins and monoclonal antibodies for medical uses. Primedica Corporation, Genzyme Transgenics contract research organization, provides preclinical development and testing services to pharmaceutical, biotechnology, medical device and other companies. Genzyme Transgenics Corporation is also developing idiotypic vaccines in collaboration with the National Cancer Institute.

Millennium BioTherapeutics, Inc., a majority-owned subsidiary of Millennium Pharmaceuticals, Inc., uses genomics technology and informatics to discover and develop biotherapeutic (therapeutic proteins and antibodies, vaccines, gene therapy and antisense) products. Millennium Pharmaceuticals, Inc. has granted its commercialization rights for biotherapeutic products to MBio. MBio currently has over 80 employees and a major corporate alliance with Eli Lilly and Company.

Millennium, a leading drug discovery and development company, employs large-scale genetics, genomics, high throughput screening and informatics in an integrated science and technology platform. This innovative drug discovery platform is applied across the entire healthcare sector, from gene identification through patient management, to accelerate and transform the discovery and development of proprietary therapeutic and diagnostic products and services. Headquartered in Cambridge, Massachusetts, Millennium and its affiliates currently employ more than 700 people.

Millennium statement: This press release contains forward-looking statements that involve a number of risks and uncertainties. Among the factors that could cause actual results to differ materially from those indicated in such forward looking statements include uncertainties relating to gene identification, drug discovery and clinical development processes; changes in relationships with strategic partners and dependence upon strategic partners for the performance of critical activities under collaborative agreements; the impact of competitive products and technological changes; uncertainties relating to patent protection and regulatory approval; and uncertainties relating to the ability of Millennium and its affiliates to obtain the substantial additional funds required for progress in drug discovery and development. The factors that could affect the performance of Millennium are more fully described in filings by Millennium with the Securities and Exchange Commission including but not limited to the factors set forth under the heading ''Business - Factors That May Affect Results'' in the Annual Report on Form 10-K of Millennium for the year ended December 31, 1997 as filed on March 31, 1998.

This news release contains forward-looking statements that involve risks and uncertainties. The Company's actual results may differ materially from those anticipated in these forward-looking statements. Factors that may cause such differences include, but are not limited to, those discussed in Genzyme Transgenics Corporation's prospectuses and Forms 10-K, as filed with the Securities and Exchange commission, including the uncertainties associated with product development, the risk that clinical trials will not commence when planned, and the risks and uncertainties associated with dependence upon the actions of government and regulatory agencies. In particular, there can be no assurance that Genzyme Transgenics' collaboration with Millennium will result in the cost-effective production of novel biotherapeutics.

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