San Diego, California
January 28, 2002

Diversa Corporation (Nasdaq: DVSA) today reported revenues of $10.0 million for the fourth quarter ended December 31, 2001, a 12% increase over fourth quarter 2000 revenues, and $36.0 million for the year ended December 31, 2001, a 48% increase over revenues for the year ended December
31, 2000. The net loss was $7.5 million, or $0.21 per share, in the fourth quarter of 2001, compared to a net loss of $0.4 million, or $0.01 per share, in the fourth quarter of 2000. The net loss for the year ended December 31, 2001 was $15.7 million, or $0.44 per share, compared to a net loss of $8.1 million, or $0.27 per share, for the year ended December 31, 2000.

The revenue increases for the quarter and year ended December 31, 2001 resulted from additional research funding received under the Company's collaboration agreements. Additionally, the Company received $2.4 million in milestone and non-recurring payments in the fourth quarter. Financial results have fluctuated from period to period and likely will continue to fluctuate substantially in the future, based upon the timing of license and milestone payments as well as the initiation and completion of research projects under new and existing collaboration agreements.

Total operating expenses for the quarter and year ended December 31, 2001, respectively, were $19.3 million and $60.9 million, compared to $12.7 million and $43.4 million for the same periods in 2000. These increases were primarily attributable to the Company's investment in both its pharmaceutical small molecule and antibody programs, as well as its GigaMatrix(TM) ultra high-throughput screening platform, which uses 100,000-well plates, and Tunable GeneReassembly(TM), its next-generation evolution technology. The Company also incurred higher research and development expenses associated with its collaborations, as well as higher selling, general and administrative expenses as the Company expanded its business development and marketing efforts to support the advancement of the 19 additional products that are expected to be commercialized through 2004.

Interest and other income for the quarter and year ended December 31, 2001, respectively, were $1.8 million and $9.2 million, compared to $3.1 million and $11.0 million for the same periods in 2000. The quarter and year decreases were due to lower interest income as a result of declining interest rates, as well as increased expenses related to Innovase LLC, the Company's industrial joint venture that is accounted for using the equity method. These decreases were partially offset by an increase in the value of warrants held by the Company.

At December 31, 2001, the Company had cash, cash equivalents, short-term investments and receivables totaling $193.7 million, compared to $211.8 million at December 31, 2000.

``We are pleased with the progress made at Diversa in 2001 in achieving all of our corporate and financial goals, including the advancement of our technologies and our product pipeline,'' stated Jay M. Short, Ph.D., President and Chief Executive Officer. ``A key focus for Diversa in 2002 will be to significantly advance our pharmaceutical programs on several fronts, including the initiation of a collaboration agreement to optimize an existing antibody. Additionally, we expect to launch our de novo human antibody program in the second half of the year, as well as further expand our collaboration network and launch several new products,'' continued Dr. Short.

Diversa Corporation is a leader in applying proprietary genomic technologies for the rapid discovery and optimization of novel products from genes and gene pathways. Diversa is directing its integrated portfolio of technologies to the discovery, evolution, and production of commercially valuable molecules with pharmaceutical applications, such as optimized monoclonal antibodies and orally active drugs, as well as enzymes and small molecules with agricultural, chemical, and industrial applications. The Company has formed significant joint ventures with The Dow Chemical Company (named Innovase LLC) and with Syngenta Seeds AG (named Zymetrics, Inc.) focused on near-term commercialization of products for the industrial and agricultural markets, respectively. In addition, the Company has formed alliances with market leaders, such as Celera Genomics, The Dow
Chemical Company, GlaxoSmithKline plc, Invitrogen Corporation, and Syngenta Biotechnology, Inc.