REYKJAVIK, Iceland, Jan. 20 — deCODE genetics (Nasdaq: DCGN) announced today that it has entered into an agreement with NBI, an Icelandic financial institution, pursuant to which NBI has purchased deCODE’s auction rate securities for an aggregate price of $11 million. Pursuant to the agreement, deCODE has the call option to require NBI to sell the securities back to the company at any time prior to December 31, 2009. NBI has the put option to require deCODE to repurchase the securities following the sale of certain other deCODE assets, or if not previously repurchased, on December 31, 2009.

deCODE is continuing its policy of reducing expenses while completing the evaluation of its strategic alternatives, including corporate partnerships and the sale of assets. deCODE believes that the proceeds from the sale of the auction rate securities will be sufficient to sustain operations into the second quarter, enabling the company to complete its strategic review and to pursue the best opportunities emerging from this process without seeking additional financing.