AFFX Affymetrix, Inc.

Affymetrix Inc. (NASDAQ:AFFX) announced today that it plans to introduce a 1 million-SNP product by the first quarter of 2007 and that the U.S. list price of its current two-chip 500K SNP genotyping set will be reduced to $250, effective immediately. Additionally, the 500K set will be offered as a single array by the end of the year, increasing throughput and enabling scientists to devote their resources toward performing larger experiments. These advances in array technology stem from an ongoing collaboration between Affymetrix and scientists at the Broad Institute of MIT and Harvard and other researchers to refine genotyping algorithms. These improved algorithms allow researchers to extract more information from each array without any manufacturing or assay changes. "We have been delighted to work with our colleagues at Affymetrix to help their technology reach even greater utility for the entire scientific community," said David Altshuler, M.D., Ph.D., director, The Broad Institute's Program in Medical and Population Genetics. "These new tools will enable us to perform more studies than we could have before. We should be able to quickly add to the pool of genotyping data we all need to understand the genetic contributions to many human diseases." The reduced price of the Affymetrix 500K array will enable scientists to run more samples, and thereby increase the power of their genetic association studies. For example, thousands of samples are needed to find genes with subtle effects in complex diseases like diabetes. "It is a tribute to the innovation and drive of the scientists at Affymetrix that the performance of human genotyping technology continues to grow by leaps and bounds," said Eric Lander, Ph.D., director, The Broad Institute of MIT and Harvard. "It will propel rapid progress in medical genetics." "Our business strategy over the past decade has been to use our manufacturing leverage and technical innovations to give customers more data per dollar each passing year," said Stephen P.A. Fodor, Ph.D., founder, chairman and CEO of Affymetrix. "That strategy was instrumental in growing the gene expression market and we believe that reducing the price per SNP will significantly increase the overall genotyping market opportunity, particularly where large sample populations are required." The 1 million-SNP product, which is scheduled to be available to a limited number of customers in the first quarter of 2007, is expected to sell for around $500. Both the 1 million-SNP product and the single 500K chip will be based on the proven, Whole Genome Sampling Assay (WGSA). This same technology is being used by more than 200 laboratories and has generated data for nearly 100 peer-reviewed scientific publications. Affymetrix offers a comprehensive solution on a single platform for the entire association study workflow, including whole-genome scans, replication, and fine mapping and functional testing: -- Affymetrix Targeted Genotyping assays and services enable researchers to genotype up to 50,000 SNPs to confirm associations and do fine mapping -- Affymetrix CustomSeq 300 kb Arrays enable researchers to do detailed sequence analysis of large genomic regions to discover SNPs and pinpoint causal variants -- Affymetrix Gene Expression Arrays, including its tiling and exon arrays, can be used to verify the association between the causal variant that's been discovered and the phenotypic effects -- Affymetrix Mapping Arrays combine high-resolution copy number and genotype information in a single, proven assay to provide researchers with more power to discover and define chromosomal copy number changes The full GeneChip system includes: -- GeneChip Human Mapping Arrays -- Optimized and validated reagents based on the proven WGSA -- Affymetrix GeneChip DNA Analysis Software (GTYPE), which uses a new automated genotype-calling algorithm, BRLMM, that provides a confidence score for each individual genotype -- Controls Database that will feature more than 12,000 publicly-available samples to help reduce the number of controls required to complete a study or as an addition to ongoing studies -- Affymetrix open software architecture for easy integration with downstream analysis software and LIMS, including various third-party providers and in-house systems -- Affymetrix instruments, including the GCS3000 7G Scanner, fluidics station and hybridization oven About Affymetrix Affymetrix scientists invented the world's first high-density microarray in 1989 and began selling the first commercial microarray in 1994. Since then, Affymetrix GeneChip(R) technology has become the industry standard in molecular biology research. Affymetrix technology is used by the world's top pharmaceutical, diagnostic and biotechnology companies as well as leading academic, government and not-for-profit research institutes. More than 1,400 systems have been installed around the world and nearly 4,000 peer-reviewed papers have been published using the technology. Affymetrix' patented photolithographic manufacturing process provides the most information capacity available today on an array, enabling researchers to use a whole-genome approach to analyzing the relationship between genetics and health. Affymetrix is headquartered in Santa Clara, Calif., with manufacturing facilities in Sacramento, Calif., and Bedford, Mass. The company maintains important sales and marketing operations in Europe and Asia and has about 1,100 employees worldwide. For more information about Affymetrix, please visit the company's website at www.affymetrix.com. All statements in this press release that are not historical are "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act as amended, including statements regarding Affymetrix' "expectations," "beliefs," "hopes," "intentions," "strategies," or the like. Such statements are subject to risks and uncertainties that could cause actual results to differ materially for Affymetrix from those projected, including, but not limited to: uncertainties relating to the Company's ability to offer the 500K Array Set on a single chip before the end of 2006 and to introduce a new 1 million-SNP array by the first quarter of 2007; risks of the Company's ability to achieve and sustain higher levels of revenue, higher gross margins, reduced operating expenses (including financial risks and uncertainties associated with the Company's decision to reduce the list price of its current two-chip 500K SNP genotyping set discussed in this press release); uncertainties relating to technological approaches, manufacturing (including risks related to the Company's ability to achieve hoped-for manufacturing yields for certain array products, including the ability to identify and resolve manufacturing problems), product development; personnel retention; uncertainties related to cost and pricing of Affymetrix products; dependence on collaborative partners; uncertainties relating to sole source suppliers; uncertainties relating to FDA and other regulatory approvals; competition; risks relating to intellectual property of others and the uncertainties of patent protection and litigation. These and other risk factors are discussed in Affymetrix' Form 10-K for the year ended December 31, 2005, and other SEC reports, including its Quarterly Reports on Form 10-Q for subsequent quarterly periods. Affymetrix expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Affymetrix' expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based. NOTE: Affymetrix, the Affymetrix logo, and GeneChip are registered trademarks owned or used by Affymetrix Inc.