Paradigm Genetics, Inc.(Nasdaq: PDGM), a biotechnology company, today announced that it has received notification from Nasdaq granting the company an extension until July 3, 2003 to re-establish compliance with the Nasdaq National Market’s minimum $1.00 closing bid requirement. As previously released in January 2003, Paradigm received a notice from Nasdaq indicating the company failed to comply with the $1.00 minimum bid price required for continued listing by Marketplace Rule 4450(a)(5) and that its common stock was subject to delisting from the Nasdaq National Market. Paradigm subsequently made a formal appeal before a Nasdaq Listing Qualifications panel to maintain the company’s listing on the Nasdaq National Market.

"We are very pleased that Nasdaq has granted us this extension," said Heinrich Gugger, Ph.D., President and CEO. "We strongly believe in our business strategy and our ability to execute the plan. Nasdaq’s decision further enables us to focus on our execution. By doing so we believe we will be able to regain and maintain compliance with the Nasdaq National Market listing requirements."

Paradigm has made significant progress in executing the company’s strategic plan and building the long-term prospects for the company. Areas of progress include the restructuring of its commercial arrangements with its agriculture partners to provide the foundation for future profitability in its agriculture business; identification of new business opportunities in both agriculture and healthcare, including the recent launch of the microarray services business; and establishment of key strategic relationships to strengthen the company’s collective offering and speed its entry into the healthcare market.

Last month, the Securities and Exchange Commission (SEC) approved certain changes to Nasdaq’s bid price rules, including an extension of the initial compliance period for National Market issuers from 90 to 180 days. Since then, Nasdaq has proposed other modifications to the bid price rules, whereby National Market issuers may be granted an additional 180-day compliance period, subject to meeting certain other enhanced listing standards. There can be no assurances that such a proposal will be approved by the SEC, or if approved, that it will not be modified by the SEC in a manner that would shorten the proposed extension or prevent Paradigm from qualifying for any additional period of time to comply with the minimum bid price requirement.