Epigenomics AG (Frankfurt, Prime Standard: ECX), a molecular diagnostics company developing tests based on DNA methylation, announced today that it has been informed by the majority of its venture capital investors:

office/images/list_style_undefined.gif)\">
• DVC (DVCG mbH & Co Fonds II KG, Venture Capital mbH & Co Fonds III),
• MPM (MPM Bioventures GmbH & Co; MPM Bioventures II-QP, LP; MPM Bioventures II, LP; MPM Asset Management Investors 2000 BLLC),
• 3i (Technologie Holding Fonds VC GmbH; 3i Group Investments LPM; Technologieholding Fonds NBL GmbH),
• Strategic European Technologies NV,
• Abingworth (Abingworth Bioventures II SICAV; Abingworth Bioventures IIA LP),
• tbg Technologie-Beteiligungs-Gesellschaft mbH
  

that any potential sale of shares, which were subject to a six month lock up period that expired on January 14, 2005, would take place in a jointly executed and coordinated procedure. Morgan Stanley has been appointed to manage this process, which is regulated in a binding agreement between all these investors and Morgan Stanley. The agreement is binding for all investors throughout the year 2005 with opt-out windows every four months.

Epigenomics’ management welcomes the agreement between its venture capital shareholders, as it complements existing plans to diversify Epigenomics’ shareholder structure by increasing the free-float. Management has agreed to support this process in line with current market practice.

The initiative for the agreement was taken by the management team of Epigenomics to avoid concerns of IPO and future investors that the stock price of Epigenomics could come under pressure due to uncoordinated selling of stock after the expiry of the lock up period.

Epigenomics’ CEO Alexander Olek commented: "Our VC investors have given us clear indications that they do not feel any urgency to sell our stock at the current price level. However, we wanted to send a strong signal to the market that, consistent with our statements at the IPO, we intend to actively manage any movements of our stock, increasing confidence in its stability."

The firm’s CFO, Oliver Schacht added: "We believe the agreement between our venture capital shareholders is a chance to provide existing and potential new shareholders with a service that ensures the opportunity to orderly trade without causing any exaggerated up- or downward fluctuation of our stock’s price. Should we encounter potential buyers for blocks of our shares, we now have a tool to ask our venture capital investors to help us satisfy that demand. At the same time, we can now be sure that nothing much can happen in the absence of such strong demand. By definition, therefore, an overhang of shares cannot exist under these circumstances."


About Epigenomics

Epigenomics is a molecular diagnostic company with a focus on the development of novel products for cancer. By detecting and interpreting DNA methylation patterns, Epigenomics’ tests can potentially diagnose disease at an early stage and help guide physicians to select an appropriate therapy. Epigenomics collaborates with Roche Diagnostics on the development of several diagnostic products in cancer. The company has its headquarters in Berlin, Germany, and a wholly owned subsidiary in Seattle, USA. For more information, please visit our website at www.epigenomics.com.

# # #

Disclaimer

This communication expressly or implicitly contains certain forward-looking statements concerning Epigenomics AG and its business. Such statements involve certain known and unknown risks, uncertainties and other factors which could cause the actual results, financial condition, performance or achievements of Epigenomics AG to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Epigenomics AG is providing this communication as of this date and does not undertake to update any forward-looking statements contained herein as a result of new information, future events or otherwise.