Digene Corporation Announces Ruling In Arbitration With Beckman Coulter, Inc.

GAITHERSBURG, Md., July 31 /PRNewswire-FirstCall/ -- Digene Corp. today announced that the International Centre for Dispute Resolution of the American Arbitration Association ruled in Digene's favor in its arbitration with Beckman Coulter, Inc. The arbitration related to the Sept. 25, 2002, announcement by Ventana Medical Systems, Inc. that it had acquired Beckman Coulter's human papillomavirus (HPV) business and corresponding assets, including the assignment of the HPV intellectual property portfolio acquired by Beckman Coulter, Inc. from Institut Pasteur through a 1991 sublicense agreement.

The arbitration panel ruled that Beckman Coulter's purported sale of its HPV intellectual property portfolio, acquired by Beckman Coulter from Institute Pasteur through a 1991 sublicense agreement, to Ventana violated the terms of the original cross-license agreement between Institute Pasteur and Digene. In addition to determining that Beckman Coulter's sale of its HPV business to Ventana was void because it violated provisions in the underlying agreement, the panel also found that the cross-license agreement prohibited Beckman from supplying unfinished HPV 35 materials, such as cell paste, to third parties -- a practice Beckman Coulter had engaged in before the purported sale of its HPV business to Ventana.

Evan Jones, Chairman and Chief Executive Officer of Digene, commented, "This ruling is an important positive step forward for Digene in its efforts to defend its intellectual property portfolio. The arbitration panel found that Beckman Coulter's conduct in this case was not permitted. With the underlying rights in this case clarified we expect to now further progress our goals of defending our intellectual property rights."

Background on Arbitration

On Nov. 19, 2001, Digene Corporation filed an action for patent infringement against Ventana Medical Systems, Inc. The action was filed in the U.S. District Court for the District of Delaware. In the action, Digene alleged that Ventana Medical Systems, Inc. has made, used, sold and/or offered for sale products embodying its patented inventions, thereby infringing its United States Patent No. 4,849,332 titled "Human Papillomavirus 35 Nucleic Acid Hybridization Probes and methods for Employing the Same." Digene is seeking a permanent injunction and monetary damages for past infringement.

On Sept. 25, 2002, Ventana publicly announced that it had acquired Beckman Coulter Inc.'s HPV business and corresponding assets, including the assignment of the HPV intellectual property portfolio acquired from Institut Pasteur through a 1991 sub-license agreement. On Oct. 18, 2002, Digene filed a motion to amend its complaint to add Beckman Coulter as a co-defendant, as well as additional claims against Ventana. On Dec. 10, 2002, the court granted Digene's motion to amend. On Jan. 28, 2003, Digene filed a motion to file a second amended complaint. On March 9, 2003, the court granted Digene's motion to amend.

In the course of this litigation, Ventana and Beckman Coulter filed motions seeking to compel arbitration of Digene's claims against them. After a bench trial, the court issued an order that Beckman Coulter has a right to arbitrate Digene's claims against it, but that Ventana does not. The court, as a matter of judicial economy, stayed the proceedings against Ventana pending the outcome of the arbitration between Digene and Beckman Coulter. On Dec. 23, 2004, Digene submitted a demand for arbitration against Beckman Coulter with the American Arbitration Association. The arbitration hearing between Digene and Beckman Coulter occurred on March 13-16, 2006.

About Digene

Digene Corporation , based in Gaithersburg, MD, develops, manufactures and markets proprietary DNA and RNA testing systems for the screening, monitoring and diagnosis of human diseases -- with a focus on women's cancers and infectious diseases. The company's hc2 High-Risk HPV DNA Test(R) is the only test for HPV approved by the FDA, and is approved for both follow-up evaluation in women with inconclusive Pap results and for primary adjunctive screening with the Pap test in women age 30 and older. For primary adjunctive screening, it is marketed as both The Digene HPV Test and the DNAwithPap(R) Test. These brand names do not refer to the Digene product that tests for several types of the virus commonly referred to as "low-risk HPV," which are not associated with cervical cancer. For more information, visit http://www.thehpvtest.com. Digene's product portfolio also includes DNA tests for the detection of other sexually transmitted infections, including chlamydia and gonorrhea, as well as tests for blood viruses. For more information, visit the company's Web site, http://www.digene.com. Investors also may contact Charles Fleischman at (301) 944-7000; journalists may contact Pam Rasmussen, (301) 944-7196.

Digene(R), Hybrid Capture(R), hc2 High-Risk HPV DNA Test(R) and DNAwithPap(R) are registered trademarks of Digene Corporation.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not guarantees of the future as there are a number of meaningful factors that could cause the Company's actual results to vary materially from those indicated by such forward-looking statements. Meaningful factors, which could cause actual results to differ from expectations include, but are not limited to, the degree of acceptance of HPV and cystic fibrosis testing by physicians, our ability to scale up manufacturing operations to meet any increased demand, risk that other companies may develop and market HPV tests competitive with our own; the uncertainty regarding patents and proprietary rights, the success of the Company's marketing efforts, competition, uncertainty of the Company's future profitability, and risks inherent in international transactions, as well as other factors discussed in the Company's Securities and Exchange Commission filings. For other factors, reference is made to the Company's annual and quarterly reports filed with the Securities and Exchange Commission.

CONTACT: Charles M. Fleischman, President, Digene Corporation,+1-301-944-7000; Investors: Jonathan Birt, Financial Dynamics,+1-212-850-5634; Media: Pam Rasmussen, Digene, +1-301-944-7196; or SeanLeous, Financial Dynamics, +1-212-850-5600

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