Molecular Devices Announces Investment in Upstate Biotechnology and Strategic Partnership for New Reagent Kits

Molecular Devicesompany%> today announced that it has acquired an approximate 20% equity interest in Argonex, Inc., the parent company of Upstate Biotechnology, Inc. and Argonex Discovery, Ltd., for $10 million in cash. The companies also announced the launch of a ten-year strategic partnership to provide new consumable reagent kits to the high throughput screening market. Under the partnership agreement, Molecular Devices will be the exclusive distributor of all kits co-developed by Argonex and Molecular Devices, which will be optimized to perform on Molecular Devices' drug discovery instrumentation platforms. As part of this investment, Joseph D. Keegan, Ph.D., President and CEO of Molecular Devices, will join the Board of Directors of Argonex.

Upstate Biotechnology is a leading supplier of reagents to the drug discovery and life sciences research markets, with particular strength in "cell-signaling" reagents such as kinases. Kinase assays are currently among the most frequently-performed tests in high throughput screening laboratories, and demand for these assays is expected to grow due to the central role kinases play in key cellular functions. Understanding the roles of kinases and other proteins is the goal of proteomics, and is a critical step in translating the information provided by genomics into new pharmaceutical products. The focus of the strategic partnership between Molecular Devices and Argonex is the development and commercialization of products which will allow many significant kinase assays to be performed at high throughput rates.

Dr. Keegan commented, "We are excited about our long-term strategic partnership with Argonex, both as an investor and as a collaborator on a significant new line of high throughput screening products. It is Molecular Devices' strategic intent to become a solution provider for drug discovery, and a strong relationship with a leading reagent company is an important step toward achieving this vision. Upstate Biotechnology's products are widely used and well-regarded in the drug discovery and life sciences research markets and, together with Molecular Devices' instruments, we can offer customers a comprehensive, high-quality set of discovery tools. Additionally, by combining the complementary market expertise of our companies, we will enhance our ability to develop innovative products that address significant new customer applications."

Sheridan Snyder, Chairman and CEO of Argonex, commented, "We are very pleased to have Molecular Devices as a significant shareholder in our company and to have Dr. Keegan join our Board of Directors. This investment, in addition to the strategic commitment both companies have made to joint product development, will strengthen and broaden both companies' reach into the drug discovery marketplace. We look forward to working with Molecular Devices to provide customers with novel and comprehensive solutions for high throughput screening."

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Molecular Devices Corporation is a leading developer of high-performance, bioanalytical measurement systems that accelerate and improve drug discovery and other life sciences research. Molecular Devices' systems enable pharmaceutical and biotechnology companies to leverage advances in genomics and combinatorial chemistry by facilitating the high throughput and cost effective identification and evaluation of drug candidates. Molecular Devices' instrument systems are based on its advanced core technologies which integrate its expertise in engineering, molecular and cell biology and chemistry and are fundamental tools for drug discovery and life sciences research.

Argonex, Incorporated sells worldwide more than 1000 cell signaling reagent products to academic, government and industrial laboratories through its wholly owned subsidiary Upstate Biotechnology, Inc., headquartered in Lake Placid, New York. The majority of Upstate products are enzymes, growth factors and antibodies useful in the study of important cellular regulation pathways. Argonex also provides reagents for high throughput screening through its wholly owned subsidiary Argonex Discovery, Ltd., based in Dundee, Scotland.

This press release contains "forward-looking" statements. For this purpose, any statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Words such as "believes," "anticipates," "plans," "expects," "will," "intent" and similar expressions are intended to identify forward-looking statements. There are a number of important factors that could cause the results of Molecular Devices Corporation to differ materially from those indicated by these forward-looking statements, including, among others, risks detailed from time to time in the Company's SEC reports, including its Annual Report on Form 10-K for the year ended December 31, 1999, its most recent Quarterly Report on Form 10-Q for the quarter ended September 30, 2000 and its Registration Statement on Form S-4, as amended as of July 17, 2000, and definitive proxy statement filed in connection with the acquisition of LJL BioSystems, Inc.