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Date: August 2, 2001 Phone: 612-379-8854
Contact: Kathy Backes Fax: 612-379-6580


Techne Corporation announced today that it has made an equity investment of $3 million and entered into a research and license agreement with Discovery Genomics, Inc., of Minneapolis, Minnesota. Discovery Genomics was recently organized and holds exclusive licenses from the University of Minnesota to develop technologies related to “knock-downs” in Zebrafish using a proprietary Morphant® technology and to the use of the Sleeping Beauty Transposon™. Both technologies may be used for functional genomics and the discovery of drug targets. Additionally, the transposon may have applications in gene therapy. Morphant® “knock-downs” are used to suppress and thereby study the functions of particular genes. The Zebrafish model system is a much faster and less expensive approach to gene discovery than other vertebrate model systems.

Techne acquired a 39% equity interest in Discovery Genomics and warrants to acquire additional equity. Techne was granted the rights to develop antibodies and immunoassays for proteins discovered by Discovery Genomics and an exclusive, royalty free license to sell such products in the research market. Techne may elect to sell such products in the diagnostic market in exchange for royalty payments to be negotiated later.

Under the applicable equity method of accounting, Techne will reflect as a research expense a portion of losses incurred by Discovery Genomics. Total losses of Discovery Genomics are expected not to exceed $1 million in the first year and $2 million in each of the second and third years. The portion reflected by Techne will depend each quarter on Discovery Genomics’ capital structure and actual results of operations. Such forward looking statements involve risks and uncertainties. Actual amounts will depend in part on factors beyond Techne’s control, including Discovery Genomics’ expense levels, the amount of income which it generates from the sale of services and products and possible investments by other parties which may reduce the percentage of equity held by Techne.


Techne Corporation has two operating subsidiaries: Research and Diagnostic Systems, Inc. (R&D Systems) of Minneapolis, Minnesota and R&D Systems Europe, Ltd. (R&D Europe) of Abingdon, England. R&D Systems is a specialty manufacturer of biological products and R&D Europe is a distributor of biotechnology products. Techne’s Common Stock is traded on the Nasdaq Stock Market under the symbol TECH.


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