MENLO PARK, Calif. and LINCOLN, Neb., May 27 — Pacific

Biosciences announced today that it has acquired “sequencing by

incorporation” technology from LI-COR Biosciences of Lincoln Nebraska.

Sequencing by incorporation generally identifies nucleotides in a DNA

sequence based upon synthesis of a complementary DNA strand. The technology

acquired from LI-COR broadens Pacific Biosciences’ existing intellectual

property related to the SMRT(TM), single molecule real time, sequencing

method. Developed by Pacific Biosciences, SMRT technology is unique in the

field of DNA Sequencing and offers the ultimate combination of speed, long

reads, and low costs.

Included in the acquisition is a significant portfolio of key

intellectual property developed under LI-COR’s single molecule sequencing

program, including a number of issued US and foreign patents as well as a

number of pending US applications. LI-COR retained rights to its

intellectual property for the sequencing enzymes that were designed for

sequencing by polymerase synthesis, and LI-COR has an active program to

out-license its enzymes. The acquisition also includes ongoing

opportunities to collaborate with the LI-COR scientists on its sequencing

enzymes.

“LI-COR’s early developments in the field of sequencing by

incorporation, as well as their comprehensive intellectual property

portfolio surrounding those developments, provide a unique and attractive

opportunity for us to combine our resources to build a strong foundation

from which to ultimately deliver on the huge advantages of single molecule

real time sequencing by synthesis,” commented Hugh Martin, Pacific

Biosciences’ Chairman and CEO. “It has truly added to our breadth and depth

in the field of long read DNA sequencing.”

“We are quite pleased that Pacific Biosciences has acquired our early

developments in single molecule DNA sequencing and will now shepherd the

technology to market,” said William Biggs LI-COR’s President and CEO. “We

look forward to future collaborations and see the potential for our long

history in DNA sequencing and expertise in enzymes and dye development to

be of tremendous value to the relationship.”

About Pacific Biosciences

Pacific Biosciences is a private company based in Menlo Park,

California. The company was founded in 2004 with the goal of developing a

transformative SMRT (single molecule real time) DNA sequencing platform

that will become the new gold standard for genetic analysis, eventually

enabling sequencing of individual genomes as part of routine medical care.

Pacific Biosciences’ lead investors include Kleiner Perkins Caufield and

Byers, MDV- Mohr Davidow Ventures, Alloy Ventures and Maverick Capital

among others. The company has also received an Advanced Sequencing

Technology Award grant from the NHGRI (National Human Genome Research

Institute) to develop the $1,000 genome. More information is available at

http://www.pacificbiosciences.com.