deCODE genetics, Inc. Provides Product Development Update -- CEP-1347, DG041, DG031, DG051

REYKJAVIK, Iceland, June 26 /PRNewswire-FirstCall/ -- At its annual R&D Event being held in Reykjavik, deCODE management today provided an update on the company's drug discovery and development programs; recent gene and target discoveries with application to drug and diagnostic development; and an overview of progress in the execution of the company's business strategy. The presentations at the event will be webcast live beginning at 9am GMT/5am Eastern Time through the investors section of the company's website, http://www.decode.com.

Highlights include:

Asthma. The company announced positive data from its preliminary Phase II (Phase IIa) clinical trial of Cephalon Inc.'s CEP-1347 in asthma. Data on patients receiving active drug in the trial were consistent with a dose- dependent improvement in some parameters of lung function examined in the study, including methacholine challenge test and peak expiratory flow rates, as well as in a biomarker associated with asthma severity and inflammation. There was no evidence of safety and tolerability concerns. deCODE presented the data from the trial to Cephalon at the end of last week, and is looking forward to discussing with Cephalon how to further examine the beneficial effects of CEP-1347 in asthma patients.

Peripheral artery disease (PAD) - DG041. The company last week began dosing patients in a Phase IIa clinical trial of DG041, its lead developmental compound for the treatment of PAD. The trial will examine safety and tolerability, dosing, and the effect of different dose levels on platelet function and a range of serum biomarkers associated with atherosclerosis. The randomized, double-blind, placebo-controlled trial will enroll approximately 150 patients with intermittent claudication due to PAD, and include patients with and without the gene variants that deCODE has linked to risk of PAD.

Heart attack - DG031 and DG051. deCODE has identified variants of two genes that increase risk of heart attack by upregulating the production of leukotriene B4, a potent inflammatory modulator. The company's two developmental compounds target the proteins made by these genes, with the therapeutic goal of reducing LTB4 production and thereby lowering risk of heart attack. DG031, which in clinical trials in Iceland has been shown to reduce LTB4 in a dose-dependent manner, is now being tested in a Phase III trial in the US. In this trial deCODE is leveraging its ability to identify patients at highest risk through the pathway targeted by DG031. Later this week, the company expects to file an IND on DG051, deCODE's follow-on compound for the prevention of heart attack, paving the way for the initiation of a Phase I clinical program.

Diabetes, breast cancer and prostate cancer. The discovery of gene variants that confer risk of common diseases provides the basis for deCODE's drug discovery and development work. These discoveries can also be applied to the development of DNA-based diagnostics. Such tests can be used to gauge individual risk of developing a disease, and to identify patients who may benefit from a drug targeting the same biological pathway. Through its recent alliance with Illumina, deCODE is working on developing diagnostic tests based on deCODE's gene discoveries in type 2 diabetes, heart attack and breast cancer. deCODE aims to accelerate its gene discovery efforts and to continue to expand its intellectual property portfolio through association studies utilizing Illumina's whole-genome SNP genotyping platform. The company also recently announced the identification of the first common genetic variant conferring risk of prostate cancer in the general population.

About deCODE

deCODE genetics is a global leader in applying human genetics to develop drugs for common diseases. Our population approach has enabled us to discover and target key biological pathways involved in conditions ranging from heart attack to cancer. We are turning these discoveries into new medicine to better treat and prevent many of the biggest challenges to public health. deCODE is delivering on the promise of the new genetics.(SM) Visit us on the web at http://www.decode.com.

Any statements contained in this presentation that relate to future plans, events or performance are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward- looking statements. These risks and uncertainties include, among others, those relating to technology and product development, integration of acquired businesses, market acceptance, government regulation and regulatory approval processes, intellectual property rights and litigation, dependence on collaborative relationships, ability to obtain financing, competitive products, industry trends and other risks identified in deCODE's filings with the Securities and Exchange Commission. deCODE undertakes no obligation to update or alter these forward-looking statements as a result of new information, future events or otherwise.

Contact: deCODE genetics Edward Farmer Joy Bessenger +354 570 2819 +1 212 481 3891 info@decode.isir@decode.is

CONTACT: Edward Farmer, +354-570-2819, info@decode.is, or Joy Bessenger,+1-212-481-3891, ir@decode.is, both of deCODE genetics

Web site: http://www.decode.com/