Illumina and deCODE Form Alliance to Develop and Commercialize DNA-Based Diagnostics

-- Companies to initiate work on molecular diagnostics for the risk of heart attack, type 2 diabetes, and breast cancer

-- Illumina to install large-scale genotyping system and supply HumanHap300 BeadChips for disease association studies

Illumina, Inc. (NASDAQ:ILMN) and deCODE genetics (Nasdaq:DCGN)today announced the formation of a strategic alliance under which thecompanies plan to co-develop and commercialize DNA-based diagnostictests in several major disease areas. The alliance will employIllumina's platform for high-multiplex single-nucleotide polymorphism(SNP) genotyping to develop tests for gene variants deCODE haspreviously shown to have impact on the risk of a growing number ofcommon diseases with major public health impact.

Under the terms of the agreement, Illumina will gain access todisease-related biomarkers for joint validation as diagnostic panelsto be marketed and sold by Illumina on its forthcoming BeadXpressplatform. The companies will share development costs and split theprofits from sales of the diagnostics tests.

The alliance will initially focus on the development, validationand commercialization of specific diagnostic tests for variants ingenes involved in three disease-related pathways:

-- the gene-encoding leukotriene A4 hydrolase, linked to heart attack;

-- the gene-encoding transcription factor 7-like 2 (TCF7L2), linked to type 2 diabetes;

-- the gene encoding BARD1, linked to breast cancer.

As part of the agreement, Illumina will install its SNP genotypingplatform at deCODE, enabling deCODE to expand its contract genotypingbusiness to offer Illumina platform and assay technologies togetherwith deCODE's proprietary analytical services for customers. deCODEwill utilize the Illumina platform to carry-out high-density,whole-genome studies utilizing its comprehensive population geneticsresources in Iceland including more than 100,000 participants in some50 common diseases. This effort, which will enhance deCODE'sproprietary gene and drug target discovery work and may providegenetic markers for additional diagnostic development, will leverageIllumina's Sentrix(R) HumanHap BeadChips; Infinium(TM) assay and LIMS(laboratory information management system); as well as analysis andvisualization tools from Illumina's BeadStudio software.

"This alliance enables us to strengthen our global leadership inusing human genetics to discover and develop better medicine --accelerating our target discovery work and enabling us to generatenear-term product revenue from the development of diagnostics. Ourrecent discoveries have demonstrated the power of applyinghigh-density SNP genotyping to our population resources. We are veryimpressed with the quality of Illumina's SNP platform and look forwardto working with such an agile and effective partner to bring to marketa new generation of DNA-based diagnostics," said Kari Stefansson, CEOof deCODE.

According to Jay Flatley, President and CEO of Illumina, "Thislandmark agreement will aid in the discovery of powerful biomarkersassociating genetics and disease and the application of thesediscoveries to develop new products. We expect the tests developed bythe alliance to provide novel means of predicting disease risk and ofoptimizing disease prevention and treatment strategies. deCODE haspioneered the use of population genetics to better understand andimprove both individual outcomes and human health in general. We'reexcited to join forces with a company that has demonstrated scientificleadership using gene discovery to address the therapeutic challengesof complex human diseases."

About Illumina

Illumina (www.illumina.com) develops and markets next-generationtools for the large-scale analysis of genetic variation and function.The Company's proprietary BeadArray technology -- used in leadinggenomics centers around the world -- provides the throughput, costeffectiveness and flexibility necessary to enable researchers in thelife sciences and pharmaceutical industries to perform the billions oftests necessary to extract medically valuable information fromadvances in genomics and proteomics. This information will help pavethe way to personalized medicine by correlating genetic variation andgene function with particular disease states, enhancing drugdiscovery, allowing diseases to be detected earlier and morespecifically, and permitting better choices of drugs for individualpatients.

About deCODE

deCODE genetics (NASDAQ:DCGN) is a global leader in applying humangenetics to develop drugs for common diseases. Our population approachhas enabled us to discover and target key biological pathways involvedin conditions ranging from heart attack to cancer. We are turningthese discoveries into new medicine to better treat and prevent manyof the biggest challenges to public health. deCODE is delivering onthe promise of the new genetics(SM). Visit us on the web atwww.decode.com.

Certain statements contained in this press release are considered"forward-looking statements" within the meaning of the PrivateSecurities Litigation Reform Act of 1995, and it is deCODE's andIllumina's intent that such statements be protected by the safe harborcreated thereby. Forward-looking statements include, but are notlimited to: 1) the companies plan to co-develop and commercializeDNA-based diagnostic tests; 2) Illumina will gain access todisease-related biomarkers and deploy the markers into diagnosticdisease panels; 3) this alliance enables us to generate near-termproduct revenue. Potential risks and uncertainties include, but arenot limited to, the risks: a) deCODE's previously discovered at-riskvariants may not be sufficiently informative to have diagnostic value;b) Illumina's BeadLab infrastructure may not support sufficiently thehigh sample throughput envisioned by the parties; c) Illumina may notmanufacture HumanHap BeadChips in adequate quantity or quality; d) thecompanies may not see an increased customer base as a result of thecollaboration, as well as other risks and uncertainties detailed fromtime to time in deCODE's or Illumina's filings with the Securities andExchange Commission. deCODE and Illumina undertake no obligation toupdate these forward-looking statements beyond the date of thisrelease.