Sigma-Aldrich Acquires Genosys Biotechnologies

Sigma-Aldrich Corp. has completed the acquisition of Genosys Biotechnologies, Inc whose products are at the heart of much of today's gene discovery. Founded in 1987, Genosys is a leading worldwide supplier of custom synthetic DNA, and a recognized leading supplier of synthetic peptides and genes for life science research at pharmaceutical and biotechnology companies, universities and government and clinical laboratories. Genosys' oligos are complimentary with Sigma's new molecular biology products.

Sigma-Aldrich acquired all of the outstanding shares of Genosys for $39.5 million cash and will record a special charge for purchased research and development in process in connection with the acquisition. The amount of the purchased research and development will be determined prior to release of fourth quarter earnings. The acquisition is expected to have a small dilutive effect on 1999 earnings.

Sigma-Aldrich believes Genosys' strong market position is attributed to its proprietary production technology, which provides higher quality and more timely delivery than commercially available alternatives. Genosys operates production facilities in the Houston, TX area, the UK and Japan serving over 12,000 customers and has consistently grown faster than the markets it serves.

This acquisition adds further momentum to Sigma's efforts to bring together new technologies to meet the growing needs of its life science customers. Sigma intensified its focus on molecular biology in 1996 with the launch of an extensive range of products used for amplifying and sequencing DNA. This was followed in 1997 with the acquisition of Research Biochemicals, Inc. a Boston-based company developing products for neuroscience and signal transduction research. Earlier in 1998, Sigma acquired a propriety gene expression technology from Kodak which is already helping scientists to determine the function of genes discovered through various genome projects.

In addition to the acquisition of these technologies, Sigma has increased its investment in research and development with a recently hired team of scientists that is already in place working in new laboratories at Sigma's St. Louis headquarters. With more R&D projects and collaborations in the pipeline, an additional research center is planned in St. Louis for over 200 scientists working on a wide range of new products to support the needs of life science researchers.

In announcing his company's latest acquisition, Sigma-Aldrich Chairman Tom Cori stressed that adding this latest member of the Sigma-Aldrich team is part of a larger strategy to make Sigma-Aldrich a leader in molecular biology. The strengths of Genosys' technology, according to Cori, are directly behind that company's "remarkable" growth.

For more information: David Harvey, president, Sigma-Aldrich Corp., 3050 Spruce St., Saint Louis, MO 63103-3050. Tel: 314-286-8004.