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January 12, 1999

WRF, GENENTECH RECEIVE FUNDAMENTAL PATENT FOR YEASTS USED IN PRODUCTION OF FOODS, DRUGS, INDUSTRIAL ENZYMES

SEATTLE -  Washington Research Foundation (WRF), of Seattle, and Genentech, Inc. (NYSE: GNE), of South San Francisco, announced today that they have been awarded two fundamental and valuable biotechnology patents, U.S. Patent Nos. 5,854,018 and 5,856,123, relating to the production of recombinant proteins in yeast.   Yeast expression systems are used extensively in the manufacture of drugs, industrial enzymes, and consumer products.

U.S. Patent Nos. 5,854,018 and 5,856,123 are continuations of U.S. Patent No. 5,618,676 (issued April 8, 1997) which claims recombinant protein expression in the yeast Saccharomyces cerevisiae. All three U.S. patents will expire in 2014.   The new patents are broader, as they claim processes and materials for expression of proteins in recombinant yeast systems generally.  Commonly-used recombinant yeast systems include Saccharomyces, Kluyveromyces, Pichia, and Hansenula.   The claims for the patents are posted on WRF's website.

The yeast expression system was jointly developed by teams of scientists at Genentech and the University of Washington, and the original patent application was filed in 1981.  The patent family, "Expression of Polypeptides in Yeasts," is co-owned by Genentech and WRF, which acquired rights to the patent family from the University of Washington.

"This recombinant yeast technology had an immediate impact on the scientific community," said Ronald Howell, President of WRF.  "By sharing their research reagents and methods with their colleagues worldwide, the inventors promoted the rapid acceptance and further development of their technology for many applications."

WRF, a private nonprofit corporation, is the sole and exclusive licensor of rights to the patent family. It has already signed license agreements with several of the world's largest pharmaceutical, biotechnology, and chemical companies.   With the broadening of these patent rights, WRF is expecting to sign many new licenses with companies currently using yeast expression systems to make consumer products, pharmaceuticals, diagnostics, and industrial chemicals and to perform drug discovery assays.

"Companies that sign licenses with WRF in 1999 will receive a credit of their annual payments toward future royalties," said Howell.  "By offering this incentive, we expect companies to review their use of recombinant yeasts and to contact us for a license as soon as possible."

Recombinant proteins are used in the production of foods such as dairy products and sweeteners; are components of detergents, fabric softeners, and pesticides; and are used in therapeutic and diagnostic products for humans and animals.

Because it can take years to develop products, particularly pharmaceuticals, the economic value of the patents isn't immediately known, Howell noted.  WRF is currently receiving royalties on five therapeutic proteins made recombinantly in Saccharomyces cerevisiae.  The proteins are: insulin for treating diabetics, hirudin for preventing blood clots, GM-CSF for treating bone marrow transplant patients, a vaccine for protecting against Hepatitis B virus, and PDGF for healing diabetic foot ulcers.  Royalties are shared with Genentech and the University of Washington.

WRF was established in 1981 to review, protect, license and otherwise commercialize technologies developed at the University of Washington and other universities and nonprofit research centers in the state of Washington.  WRF distributes income from these activities and makes grants to such qualified institutions.   In addition to its licensing activities, WRF also furthers the development of technology from the qualified institutions by investing early stage venture capital to support the creation of new companies based on such technology.  WRF has its headquarters in Seattle, Washington.

Genentech, Inc. is a leading biotechnology company that discovers, develops, manufactures and markets human pharmaceuticals for significant unmet medical needs.  Twelve of the currently marketed biotechnology products stem from Genentech science.  Genentech markets seven products directly in the United States.  The company has headquarters in South San Francisco, California and is traded on the New York Stock Exchange and Pacific Exchange under the symbol GNE.

CONTACT: Ronald Howell, President or Beth Etscheid, Director of Licensing at WRF, 206-336-5600.

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