Research Triangle Park, North Carolina
October 16,  2001

Paradigm Genetics, Inc. (Nasdaq: PDGM) today announced that it has delivered to Bayer AG (NYSE: BAYZ) a new package of assays for use in its high-throughput screening platform for the identification of new and potentially better herbicides. Paradigm received a milestone payment in
accordance with its collaboration agreement with Bayer. Financial details were not disclosed. 

"We developed these protein-based assays using a variety of innovative approaches and have optimized them for Bayer's ultra high-throughput screening facility," said Lining Guo, Paradigm's Director of Biochemistry. "These assays are based on the novel herbicide targets we identified for Bayer in our GeneFunction Factory(TM). Bayer will use them to more rapidly identify crop protection compounds from their own chemical library." 

"Each delivery we make to Bayer further underscores the value of this collaboration and of our approach to identifying and validating new targets using industrialized biology," said John A. Ryals, Ph.D., CEO and President of Paradigm. "Combining our metabolic, gene expression, and phenotypic profiling technologies gives us not only a powerful tool for accelerating the discovery
of future herbicides, but also increases our ability to leverage and understand biology in plant models, across a wider range of applications including nutrition and human health." 

Paradigm's original herbicide partnership with Bayer began with the objective of discovering a portfolio of novel herbicide products that will be developed and marketed by Bayer. That three-years agreement included an option for an additional two years that would take the collaboration to October 2003. Bayer exercised its option in June 2001. Under this new expanded agreement, the companies will collaborate on herbicide discovery for up to an additional five years. In addition to committed revenues, Paradigm will receive commercial milestone payments and success fees for all products. 

Paradigm brings to the collaboration its expertise in gene function analysis, assay development and bioinformatics. Paradigm's high-throughput analysis includes a series of proprietary analytical processes combined with a computerized knowledge base of plant and fungal gene function information. Bayer brings extensive knowledge of how to develop safe and effective crop protection 
products, including herbicides, fungicides and insecticides. 

Bayer is a diversified, international chemicals and health care group, offering a wide variety of products and services from its health care, agriculture, polymers and chemicals business segments. The company employs 120,000 employees worldwide. For more information, visit www.bayer.com. For more information on Bayer's crop protection strategy, visit www.news.bayer.com. 

Located in Research Triangle Park, NC, Paradigm Genetics, Inc. is industrializing the process of gene function discovery for four major sectors of the global economy: human health, nutrition, crop production, and industrial products. The company has designed the GeneFunction Factory(TM) - an integrated, rapid, industrial-scale laboratory through which it discovers gene
function. Paradigm and its strategic partners intend to develop novel products using information developed with the GeneFunction Factory(TM). Paradigm's GeneFunction Factory(TM) is based on a state-of-the-art phenomics platform integrated with metabolic profiling and gene expression profiling technologies. The backbone of the GeneFunction Factory(TM) is the company's proprietary FunctionFinder(TM) bioinformatics system, used to collect, store, analyze and retrieve information. For more information, visit www.paradigmgenetics.com.

Company news release
N3883