Genopsys Receives SBIR Phase II Funding from the NIH

SOQUEL, California, August 15, 2004 - Genopsys, Inc. today announced that the National Institute of General Medical Sciences (NIGMS), part of the National Institutes of Health (NIH), has awarded the company a grant for the discovery and development of enzymes to detect several molecular markers for cancer. Under the three-year grant, Genopsys will apply its idsPCR™ / SCRAM™ directed evolution technology program to screen more than one billion biomolecules against targets associated with solid tumors. Genopsys will then optimize test enzyme candidates for their ability to detect several validated biomarkers in human diseases related to cancer. NIGMS has recommended approximately $1 million in total funding.

"A key benefit of Genopsys idsPCR™ / SCRAM™ directed evolution technology is its ability to access untapped & novel variations that are typically not accessible when using traditional systems. We believe that the diverse collection of proteins generated by idsPCR™ / SCRAM™ technology has the potential to deliver improved functional properties over traditional diversity technologies," stated Dr. Eric Lietz, Ph.D, Genopsys" President. "This NIH supported project validates our overall focus on biomedical applications of our technology" added Dr. Lietz.

About Genopsys
Genopsys, Inc., is an early-phase bioengineering company with offices in Soquel, California. The company is dedicated to the development of protein pharmaceuticals using its proprietary method of directed molecular evolution. Additional information is available at www.genopsys.com.