March 19th, 2003 — TissueInformatics.Inc — "The Tissue Information Company®".
Research Triangle Park, NC and Pittsburgh, PA —

Paradigm Genetics, Inc. (NASDAQ: PDGM) and TissueInformatics.Inc. announced today that they intend to enter into a collaboration to discover novel biomarkers for chronic liver disease.

Under the proposed agreement, Paradigm would perform metabolomics studies on tissue, urine and plasma to identify disease-specific biochemical profiles and TissueInformatics would perform automated, quantitative analyses of tissue histopathology to identify disease-specific changes in tissue structure. Together, the companies would integrate and analyze these data with the goal of identifying novel biomarkers that signal the presence and progression of liver disease. Additionally, Paradigm and TissueInformatics would market the combined capabilities of their technologies to pharmaceutical and biotechnology companies in the areas of toxicology, drug discovery and clinical trials. In addition to the above agreement, Paradigm has also entered into a Service agreement with TissueInformatics whereby TissueInformatics will provide tissue image analysis services for an upcoming toxicology study. The financial terms of these agreements were not disclosed.

"This relationship represents an important step in the building of Paradigm's healthcare business and strengthens our offerings in predictive toxicology and disease staging," said Heinrich Gugger, Ph.D., president and CEO of Paradigm Genetics. "While our proven expertise in gene expression profiling, biochemical profiling and data integration contribute important insights into drug action, the ability to analyze high quality histology data in an unbiased, automated manner places the diagnosis of disease and the assessment of drug safety on solid, practical ground, and bridges the gap between traditional pathology and next generation in silico diagnostic tools. We access these capabilities by partnering with TissueInformatics, which we recognize as a world leader in this area."

"We are pleased to provide Paradigm Genetics with our expertise in the quantitative analysis of tissue," said TissueInformatics' CEO, Peter C. Johnson, MD. "We are excited about combining forces to discover novel biomarkers for liver disease."

According to the American Liver Foundation, cirrhosis and other liver diseases take the lives of more than 25,000 Americans each year and rank eighth as a cause of death in the United States. Cirrhosis is currently diagnosed based on symptoms, laboratory tests, medical history, and a physical examination, and confirmed by liver biopsy. Laboratory tests measure certain enzymes released by damaged liver cells into the bloodstream, and reductions in a serum protein called albumin. Elevated levels of liver enzymes and a low level of albumin suggest possible liver damage. However, some healthy patients may show elevated enzyme and low protein counts, whereas other patients with cirrhosis or hepatitis may show normal levels, indicating the need for additional tests and markers in making a reliable diagnosis.

About Paradigm Genetics
Paradigm is a biotechnology company aiming to increase R&D productivity by focusing its integrated suite of technologies on the product development cycle, from target discovery to subsequent enhancement of the safety and efficacy profiles of development candidates in agriculture and human health. Paradigm chooses a systems biology approach to understand gene function in the context of biological pathways, to develop assays and biomarkers for molecular diagnostic solutions tailored to the needs of our partners. For more information, visit www.paradigmgenetics.com.

Paradigm was recently awarded a five-year toxicogenomics contract of up to $23.8 million by the National Institute of Environmental Health Sciences. The contract is focused on determining how toxicants work and cause damage at the cellular level. The research may result in better methods of risk assessment and compound optimization for both the pharmaceutical and agricultural chemical industries.

About TissueInformatics
TissueInformatics is the pioneer of automated hyperquantification analysis of normal and pathological tissue. TissueInformatics has revolutionized the tissue analysis process by enabling automated quantitative analysis of tissue and this enables the company to provide the industry with both TissueAnalytics™ Software and TissueAnalytics™ Services. TissueInformatics industry-wide expertise in tissue image capture and analysis, thorough scientific understanding of tissue morphology and extensive experience in performing daily slide analysis in its own TissueAnalytics™ Laboratory, allows TissueInformatics to provide high capacity tissue analytical services and provide a complete TissueAnalytics™ software solution for implementation within its clients own laboratories. For more information, visit www.TissueInformatics.com.

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This press release contains forward-looking statements, including statements regarding the effect of executing Paradigm's strategic plan on increasing shareholder value going forward. Such forward-looking statements are based on management's current expectations and are subject to a number of risks, factors and uncertainties that may cause actual results, events and performance to differ materially from those referred to in the forward-looking statements. These risks, factors and uncertainties include, but are not limited to, Paradigm's early stage of development, history of net losses, technological and product development uncertainties, reliance on research collaborations, uncertainty of additional funding and ability to protect its patents and proprietary rights. Certain of these and other risks are identified in Paradigm's Form 10-Q for the quarter ended September 30, 2002, filed with the Securities and Exchange Commission. The Company does not intend to update any of the forward-looking statements after the date of this release to conform these statements to actual results or to changes in our expectations, except as may be required by law.

Todd A. Joron
Senior Vice President
Sales & Marketing
(412) 327-4354
TJoron@TissueInformatics.com

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