Media Release

Basel, 12 May 2005

Roche and 454 Life Sciences enter exclusive world-wide agreement

Roche Diagnostics adds ultra-fast nanotechnology-based genome sequencing system to its product portfolio and enters new market sector with significant potential

Roche and 454 Life Sciences, a majority-owned subsidiary of CuraGen Corporation today announced that they have entered into an exclusive 5-year world-wide agreement for the development, promotion, sale, and distribution of 454 Life Sciences’ nanotechnology-based Genome Sequencing Systems, including proprietary kits and reagents.

The hallmark of 454 Life Sciences’ technology is the nanotechnology based approach to sequencing which allows a single instrument to produce over 20 million nucleotide bases per four hour run, totaling more than 100 times the capacity of instruments using the current macro-scale technology. 454 Life Sciences’ technology is based on integrating proprietary picoliter-technologies (a picoliter is a billionth of a liter), patented light emitting sequencing chemistries, and state of the art informatics. The patented Genome Sequencing System utilizes this technology and is a scalable, ultra-fast and cost-effective system with applications for whole genome sequencing and deep sequencing of genes of interest.

“Customer feedback and our own research show that one of the main limitations of today’s approaches to sequencing is throughput. This new technology will significantly increase the speed of sequencing, and thereby has the potential to open up many new applications for sequencing to researchers all over the world” stated Heino von Prondzynski, CEO of Division Roche Diagnostics and Member of the Roche Executive Committee. “Roche Diagnostics can enter now a new and very attractive market that compliments our strong position in research applications.”

Under the terms of the 5-year, exclusive world-wide distribution agreement, 454 Life Sciences will receive a margin on products manufactured for Roche Diagnostics, and royalties on net sales of licensed products. 454 Life Sciences will receive up to $62 million dollars in license fees, milestones related to instrument releases, minimum royalties and research funding. Roche Diagnostics receives the rights to negotiate distribution of 454 Life Sciences products in the regulated diagnostic market and renewal of the exclusive distribution agreement contingent upon meeting minimum performance criteria.

Under the agreement, Roche Applied Science, a business area of Roche Diagnostics, will sell 454 Life Sciences’ products through their extensive sales and marketing organization, distribute 454 Life Sciences’ products through Roche Diagnostics’ established supply chain, and provide technical support to purchasers of the 454 Life Sciences’ Genome Sequencing System and the associated reagents. 454 Life Sciences will continue to manufacture instrument systems and reagent kits, with the option to transfer the responsibility for reagent manufacturing to Roche Diagnostics given sufficient sales volume. The agreement allows for Roche Diagnostics to sell 454 Life Sciences’ products to all markets, with the exception of regulated diagnostics where Roche Diagnostics obtained an exclusive right to negotiate the extension of the exclusive distribution agreement into the regulated diagnostics market during the initial 5-year term.

454 Life Sciences began commercialization of instrument systems and proprietary reagents during the first quarter of 2005. The agreement with Roche Diagnostics will broaden the reach of 454 Life Sciences products, and enable 454 Life Sciences to focus on research and development of next generation technology and applications for high throughput sequencing.

“I am pleased that Roche will be an integral part of accelerating the full potential of 454 Life Sciences’ sequencing technology for researchers world-wide” stated Christopher K. McLeod, President and Chief Executive Officer of 454 Life Sciences. “We are delighted to have the chance to use the strength of their organization to expand our commercialization efforts and bring 454 Life Sciences’ novel nanotechnology to a broader market. This agreement should enable us to achieve our goal of financial self-sufficiency. We believe that 454 Life Sciences’ technology will enable the generation of genomic data and applications necessary to expand the market and allow for the Cancer Genome project and personalized medicine to become a reality.”

About Roche and Roche Diagnostics
Headquartered in Basel, Switzerland, Roche is one of the world’s leading research-focused healthcare groups in the fields of pharmaceuticals and diagnostics. As a supplier of innovative products and services for the early detection, prevention, diagnosis and treatment of disease, the Group contributes on a broad range of fronts to improving people’s health and quality of life. Roche is a world leader in diagnostics, the leading supplier of medicines for cancer and transplantation and a market leader in virology. In 2004 sales by the Pharmaceuticals Division totaled 21.7 billion Swiss francs, while the Diagnostics Division posted sales of 7.8 billion Swiss francs. Roche employs roughly 65,000 people in 150 countries and has R&D agreements and strategic alliances with numerous partners, including majority ownership interests in Genentech and Chugai.
Roche’s Diagnostics Division offers a uniquely broad product portfolio and supplies a wide array of innovative testing products and services to researchers, physicians, patients, hospitals and laboratories world-wide.
For further information, please visit our websites www.roche.com, www.roche-diagnostics.com, and www.roche-applied-science.com.

About 454 Life Sciences
454 Life Sciences is commercializing novel instrumentation and services for rapidly and comprehensively conducting high-throughput nucleotide sequencing, with specific application to sequencing of whole genomes and ultra deep sequencing of target genes. The Company's instrument systems, based on proprietary nanoscale technologies, patented light emitting sequencing chemistry, and state of the art image processing and informatics, have 100 times the throughput of existing sequencing machines. 454 Life Sciences’ is marketing its services and instruments to pharmaceutical, biotechnology, biodefense, and agriculture companies as well as to universities and government agencies. 454 Life Sciences is a majority owned subsidiary of CuraGen Corporation (NASDAQ: CRGN). Additional information is available at www.454.com.