Nanogen, Inc. Announces Consolidation And Cost Reduction Actions; Plans To Reduce North America Staff By Approximately 15%

SAN DIEGO, Oct. 5 /PRNewswire-FirstCall/ -- Nanogen, Inc. , developer of advanced diagnostic products, announced today that it plans to reduce staff in North America by approximately 15% by the end of 2006. The reduction will be achieved through both attrition and consolidation of activities in R&D, manufacturing, sales and marketing.

"We have acquired and successfully integrated several companies in the past two years. These acquisitions, together with new product developments, have resulted in our revenues more than doubling from 2005," said David Ludvigson, Nanogen president and chief operating officer. "The cost reduction and consolidation actions are part of our continuing focus on improving cash flow and the bottom line. We are now moving into the second stage of integrating our acquisitions and have identified a number of areas where we can consolidate functions and eliminate redundant activities, which we expect will improve operational performance."

"The expense reduction actions coupled with the recent non-dilutive $20 million cash transaction we completed, will significantly improve cash flow and our balance sheet," said Rob Saltmarsh, Nanogen chief financial officer.

Nanogen acquired Epoch Biosciences, maker of real-time PCR products, and Toronto-based SynX in 2004; in 2006, the company acquired Spectral Diagnostics' cardiac assets as well as the diagnostic assets of Italian company Amplimedical. The integrations have occurred smoothly with consistent revenue performance. The current plans represent the next phase of consolidation and are evidence of management's commitment to narrowing losses and improving results.

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, point-of-care 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 www.nanogen.com.

Nanogen Forward-Looking Statement

This press release contains forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements, including 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, whether results reported by our customers or partners can be identically replicated, 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.

Nanogen, Inc.

CONTACT: Robert Saltmarsh, Chief Financial Officer, +1-858-410-4600, orSuzanne Clancy, Corporate Communications, +1-858-410-4688,sclancy@nanogen.com, both of Nanogen, Inc.; or Kim Richards, Media &Investor Relations of Porter Novelli Life Sciences, +1-619-849-5377,krichards@pnlifesciences.com, for Nanogen, Inc.

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