Orchid Cellmark to Purchase ReliaGene Technologies, Inc.

    PRINCETON, N.J., Oct. 22 /PRNewswire-FirstCall/ -- Orchid Cellmark Inc.
 (Nasdaq:   ORCH), a leading worldwide provider of identity DNA testing
 services, today announced that it has signed a definitive purchase
 agreement to acquire the outstanding stock of ReliaGene Technologies, Inc.
 for a purchase price of $5.6 million in cash and $3.0 million worth of
 shares of Orchid Cellmark restricted common stock. The purchase price is
 subject to adjustment based on ReliaGene's working capital. A portion of
 the purchase price will be held in escrow subject to satisfying certain
 conditions including the seller's indemnification obligations. The
 transaction is expected to close at the end of October. ReliaGene is a
 prominent and well respected provider of forensic and paternity DNA
 analysis services based in New Orleans, Louisiana and had 2006 annual
 revenue of $7.5 million.
     "The acquisition of ReliaGene fits the criteria we are seeking in
 accelerating the growth of our business through acquisitions. There is
 essentially no customer overlap between the two companies and we believe
 the combined forensic casework, CODIS and paternity laboratory testing
 volumes should increase our operational efficiencies," said Thomas Bologna,
 President and Chief Executive Officer of Orchid Cellmark. Mr. Bologna
 further stated, "We believe this acquisition will begin to be accretive in
 the second half of 2008."
     Dr. Sudhir Sinha, founder of ReliaGene said, "Having watched the
 progress Orchid Cellmark has made over the last year and knowing this
 business well, I strongly believe the strength of the combined companies
 will be very beneficial to both Orchid Cellmark and ReliaGene customers."
 Dr. Sinha further added, "As a believer in the strength of the combined
 companies, and what the combination affords our customers, I look forward
 to working with Tom and the Orchid Cellmark team in integrating ReliaGene
 into Orchid Cellmark."
     About Orchid Cellmark
     Orchid Cellmark Inc. is a leading international provider of DNA testing
 services for human identity testing and agricultural applications. In the
 human identity area, Orchid Cellmark provides DNA testing services for
 forensic investigation, paternity testing and family relationship analysis
 and security applications. In the agriculture field, Orchid Cellmark
 provides DNA testing services for selective trait breeding. Orchid
 Cellmark's strong market positions in these segments reflect the company's
 accredited laboratories in the U.S. and U.K., its innovative genetic
 analysis technologies and expertise and the world-renowned Cellmark brand
 that has been associated with exceptional quality, reliability and customer
 service for nearly two decades. More information on Orchid Cellmark can be
 found at http://www.orchid.com.
     All statements in this press release that are not historical are
 forward- looking statements within the meaning of the Private Securities
 Litigation Reform Act of 1995, including statements regarding Orchid
 Cellmark's expectations with respect to the customers of the two companies
 and the belief that the combined forensic casework, CODIS and paternity
 laboratory testing volumes should increase Orchid Cellmark's operational
 efficiencies, the belief that the acquisition will begin to be accretive in
 the second half of 2008, the belief the strength of the combined companies
 will be very beneficial to both Orchid Cellmark and ReliaGene customers and
 statements about Dr. Sinha's relationship with Orchid Cellmark after the
 transaction. Such statements are subject to the risks and uncertainties
 that could cause actual results to differ materially from those projected,
 including, but not limited to, the timing of the closing of the
 transaction, Orchid Cellmark's ability to timely and successful integrate
 ReliaGene's business, uncertainties relating to technologies, product
 development, manufacturing, market acceptance, cost and pricing of Orchid
 Cellmark's products and services, dependence on government funding and
 collaborations, regulatory approvals, competition, intellectual property of
 others, patent protection, litigation, the timing of release of federal
 funds, the timing and amount of contracts put up for bid, Orchid Cellmark's
 ability to timely and successfully initiate operational efficiencies, lower
 overhead and other remedial measures and Orchid Cellmark's continued
 relationship with DEFRA. These risks and other additional factors affecting
 these statements and Orchid Cellmark's business are discussed under the
 headings "Risks Related to Our Business" and "Risks Associated with Our
 Common Stock" in Orchid Cellmark's Annual Report on Form 10-K for the year
 ended December 31, 2006, as filed with the Securities and Exchange
 Commission, and in other filings made by Orchid Cellmark with the
 Securities and Exchange Commission from time to time. Orchid Cellmark
 expressly disclaims any obligation or undertaking to release publicly any
 updates or revisions to any forward-looking statements contained herein to
 reflect any change in Orchid Cellmark's expectations with regard thereto or
 any change in events, conditions, or circumstances on which any such
 statements are based, except as may be required by law.
     Contacts
     Investor Relations:                        Media:
     Mary Bashore                               Barbara Lindheim
     Orchid Cellmark Inc.                       GendeLLindheim BioCom Partners
     (609) 750-2324                             (212) 918-4650
 
 

SOURCE Orchid Cellmark Inc.

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.