Xenogen Hailed by Fortune Small Business

ALAMEDA, Calif.–(BUSINESS WIRE)–June 27, 2000–
Third Annual Survey Places Xenogen Corporation among Top 25 Young Companies with Breakthrough Products, Services and Technologies Xenogen Corporation, a leader and innovator in the field of real-time in vivo imaging, has been named to FSB: Fortune Small Business' list of 25 technology companies whose products, services and technologies "promise to make an explosive impact." The 25 winning companies – announced in the May/June issue of FSB, and heralded as "idea champs" – were selected among hundreds of business incubators, research labs, venture capitalists and universities.

Xenogen was selected for its patented real-time in vivo imaging technology, which, among other applications, allows scientists to both identify and monitor tumors and to track the effects of drugs, in living animals, in real time. FSB also noted that pharmaceutical companies such as Eli Lilly & Co., Hoffmann-LaRoche and Novartis are evaluating the technology for use in their drug development process.

"We are delighted that FSB has recognized the potential for Xenogen's innovative technology," said Pamela Reilly Contag, president and co-CEO of Xenogen Corporation. "We're highly gratified that FSB sees the value of Xenogen's business model and understands the impact we will have on worldwide pharmaceutical research and development and chemical testing."

FSB's article follows a recent string of successes for Xenogen, including a successful $30.5 million mezzanine round of financing and entrance into an evaluation licensing agreement with DuPont Pharmaceuticals.

About the Technology Xenogen's patented real-time in vivo imaging technology enables the detection of fluorescent or bioluminescent cells (e.g., tumor cells and bacteria) inside intact living animals, allowing non-invasive visualization and tracking of the cells to monitor the effects of treatment with new chemical entities (NCEs) in vivo in real time. The technology also provides researchers with a way to localize and follow the activation of selected genes in vivo in Xenogen's LPTATM light-producing transgenic animals.

Real-time in vivo imaging offers pharmaceutical companies a number of unique benefits to help increase the productivity of their drug development pipelines. Compared to traditional methods, this technology provides improved, more predictive data and thus a better selection process for drug development candidates. In addition, Xenogen's technology allows researchers to conduct assessments more rapidly and efficiently. The resulting reduction in labor costs, coupled with a reduction in the number of test animals needed, leads to significant overall cost savings.

Xenogen Corporation is a leader in the field of real-time in vivo imaging, providing the pharmaceutical industry with proprietary technologies, products and services that enable real-time in vivo monitoring to rapidly identify drug leads for successful clinical development. These technologies, unique to Xenogen, enable researchers to overcome barriers that have complicated biological assessment for many years. Xenogen's technology has attracted strong interest from a wide range of pharmaceutical companies worldwide. In addition to pharmaceutical development, the technology has broad applications in other fields, including toxicology and the chemical industry. For more information, visit the Xenogen web site at www.xenogen.com.

Kevin Birtchnell
VP & CFO - Xenogen Corporation
860 Atlantic Avenue
Alameda CA 94501
Telephone: 510-291-6110