Nanogen to Acquire European Molecular Diagnostics Company Amplimedical

Apr 20, 2006, 01:00 ET from Nanogen, Inc.

    SAN DIEGO, April 20 /PRNewswire-FirstCall/ -- Nanogen, Inc. (Nasdaq:  
 NGEN), developer and manufacturer of advanced diagnostic products, and
 Amplimedical S.p.A., a manufacturer of molecular diagnostic products and a
 wholly owned subsidiary of Amplifon (La Borsa: AMP), today announced that
 Nanogen will acquire the assets of Amplimedical's diagnostics division in a
 transaction of 8.1 million Euros consisting of 2.0 million Euros in cash
 and 6.1 million Euros in a promissory note convertible into Nanogen common
 shares. The effective date of the acquisition is expected to be May 1,
     Based in Italy, the Amplimedical diagnostics division has been active
 in the European and other markets since the early 1990s with its molecular
 diagnostic reagents. Nanogen and Amplimedical have shared a strong business
 relationship for five years, during which time Amplimedical has been a
 distributor of Nanogen's NanoChip(R) Molecular Biology Workstation and
 NanoChip(R) 400 instrument systems in Italy. The Amplimedical diagnostics
 business will be merged with Nanogen's existing European operations to form
 Nanogen Advanced Diagnostics, S.r.L., which will become the focal point for
 Nanogen's operations in Europe, the Middle East, Africa and India. Nanogen
 Advanced Diagnostics, S.r.L. will be based in Milan, Italy and Buttigliera
 Alta (Torino), Italy.
     "Amplimedical's leading position in the real-time PCR market, combined
 with our MGB Alert(TM) real-time PCR products, will give Nanogen one of the
 most extensive product lines available for the global molecular diagnostics
 market," said Howard C. Birndorf, chairman and CEO of Nanogen. "Acquiring
 the ability to reach a broader European customer base constitutes an
 exciting opportunity that will further Nanogen's growth and progress toward
     "We are delighted that Nanogen has acquired this business and are
 confident that Nanogen's managerial and financial experience will ensure a
 successful integration of the Amplimedical products," stated Paolo Boffano,
 CEO of Amplimedical. "Integration with Nanogen will allow the molecular
 diagnostics business to further expand in Europe on the solid foundation
 that we established." Amplimedical's diagnostics division generated
 approximately 7 million Euros in revenues in 2005.
     "The addition of significant revenue and resources from this
 acquisition provides an ideal launching point for Nanogen's accelerated
 growth in Europe and nearby territories," said David Ludvigson, Nanogen
 president and COO. "The combination of Amplimedical and Nanogen creates a
 strong, experienced Euro-centric management team with capability to
 develop, manufacture and sell products internationally. Nanogen Advanced
 Diagnostics, S.r.L will be managed and operated by a highly experienced
 team that will support customers' clinical applications for molecular
     Amplimedical offers a broad range of real-time and end-point molecular
 diagnostic test kits, all CE marked for in vitro diagnostics. Amplimedical
 has successfully collaborated with Nanogen in the past to develop
 multiplexed reagent kits that are sold in Europe, including a CE/IVD-marked
 set of reagents to detect mutations in the GJB2 gene for the diagnosis of
 hereditary deafness and a research-use-only set of reagents to test for
 genetic causes of beta thalassemia, a type of inherited blood disorder that
 can cause anemia. Nanogen plans to continue to offer the current
 Amplimedical products in Italy and will begin export to the European and
 Middle East markets, and will explore opportunities to use Amplimedical's
 expertise for the development and further commercialization of new European
 diagnostic products.
     About Nanogen, Inc.
     Nanogen's advanced technologies provide researchers, clinicians and
 physicians worldwide with improved methods and tools to predict, diagnose,
 and ultimately help treat disease. The company's products include real-time
 PCR reagents, the NanoChip(R) electronic microarray platform and a line of
 rapid diagnostic tests. Nanogen's ten years of pioneering research
 involving nanotechnology holds the promise of miniaturization and continues
 to be supported for its potential for diagnostic and biodefense
 applications. For additional information please visit Nanogen's website at
     Forward-Looking Statement
     This press release contains forward-looking statements that are subject
 to risks and uncertainties, including statements regarding future financial
 and operating performance. These forward-looking statements are based on
 current expectations and speak only as of the date hereof. Actual results
 may differ materially from those set forth in the forward-looking
 statements, as a result of various factors and uncertainties, including
 whether Amplifon's shareholders will approve the transaction, whether the
 integration of the Amplimedical business will be accomplished in an
 efficient and effective manner, whether the transition to Nanogen of
 Amplimedical products and customers for manufacture and marketing purposes
 will be successful, whether former employees of Amplimedical can be
 retained by Nanogen, whether Nanogen will successfully penetrate the
 European market with Amplimedical products, whether patents owned or
 licensed by Nanogen will be developed into products, whether the patents
 owned by Nanogen offer any protection against competitors with competing
 technologies, whether products under development can be successfully
 developed and commercialized, and whether unforeseen problems may impact
 the timing of planned product launches, and other risks and uncertainties
 discussed under the caption "Factors That May Affect Results" and elsewhere
 in Nanogen's Form 10-K or Form 10-Q most recently filed with the Securities
 and Exchange Commission. These forward-looking statements speak only as of
 the date hereof. Nanogen disclaims any intent or obligation to update these
 forward-looking statements.

SOURCE Nanogen, Inc.