Maxygen and Integrated Genomics Announce Collaboration

CHICAGO, IL and Redwood City, CA - December 7, 2000

Maxygen, Inc. and Integrated Genomics, Inc. announced today that the companies have entered into a collaboration under the terms of which Maxygen will have access to Integrated Genomics' bioinformatics software and databases.

"A key advantage of our proprietary MolecularBreeding™ and DNA Shuffling™ technologies is that Maxygen can efficiently create high value novel products without requiring access to expensive and time-intensive gene sequencing and annotation," said Russell Howard, CEO of Maxygen. "Our industry needs a new generation of fermentation organisms for chemicals and pharmaceutical manufacturing as well as for expression of pharmaceutical proteins and vaccine antigens that will exhibit high bioactivity with high yield. This requires a higher order of information than simple gene sequencing. Integrated Genomics is uniquely positioned by offering one of the world's largest databases of whole-species information regarding microbial metabolism, biochemistry and protein secretion. This insight will enable Maxygen to access high-value business opportunities in both pharmaceutical and industrial applications by developing novel proprietary microbial fermentation systems."

"We are very pleased to be working with Maxygen, a company whose cutting-edge technologies are clearly at the forefront of developing novel human therapeutics, chemicals and agriculture products," said Michael Fonstein, CEO of Integrated Genomics. "This agreement further validates the value of Integrated Genomics' unique bioinformatics software and database."

About Maxygen, Inc.

Maxygen, Inc. (Nasdaq: MAXY) headquartered in Redwood City, California, is focused on creating novel products using its integrated proprietary technologies for human therapeutics and industrial applications. Maxygen's technologies bring together advances in molecular biology and protein modification to capitalize on the large amount of genetic information generated by genomics to create novel biotechnology products. Maxygen currently has a pipeline of over 40 potential products, including six in development. Maxygen has strategic collaborations with leading companies including Lundbeck, Pfizer, Chevron, Novozymes, DSM, Hercules, Rio Tinto, DuPont and Syngenta as well as U.S.A. government funding from DARPA and NIST-ATP.

About Integrated Genomics

Integrated Genomics (IG) is a private company located in Chicago, Illinois. The company provides full genomic services including high throughput DNA sequencing, assembly, annotation, and metabolic reconstruction for industrial and academic clients. Initially focused on bacterial genomes, IG has a database of more than 270 genomes and more than 3,500 biochemical pathways, allowing the company to produce wiring diagrams for cellular functionality. The new gene assignments permitted are tested in a biochemical lab, leading to the identification of potential targets for new antibiotics or for strain engineering for improved industrial fermentation. The recent addition of a large number of new sequenators allows the company to expand its repertoire to include eukaryotic organisms, beginning with fungi. IG's clients include ADM, Cargill, Dow Chemical, Dow Agro, GlaxoWellcome and others. IG also has funding from federal agencies, NIH and DARPA. Integrated Genomics' President, Robert Haselkorn, said he is delighted to have Maxygen join this stellar list.

Except for the historical information contained herein, this news release contains forward-looking statements including those relating to: our ability to efficiently create high value novel genes; the ability of our technologies to generate products with high bioactivity and yield for commercialization; our ability to develop novel microbial fermentation systems; and our ability to commercialize such systems. Such statements involve risks and uncertainties that may cause results to differ materially from those set forth in these statements. Among other things these risks and uncertainties include, but are not limited to: the inability to produce desired properties in product candidates; the inherent uncertainties of biological research; potential reluctance of industry to embrace biological based products and processes and the future ability of Maxygen to enter into and/or maintain research and commercialization collaborations. These and other risk factors are more fully discussed in Maxygen's Annual Report on Form 10-K for the year ended December 31, 1999, including under the caption "Risk Factors", and in Maxygen's other periodic reports filed with the SEC, all of which are available from Maxygen or from the SEC's website. Maxygen disclaims any obligation to update or revise any forward-looking statement contained herein to reflect any change in Maxygen's expectations with regard thereto or any change in events, conditions, or circumstances on which any such statement is based. MolecularBreeding™ , DNA Shuffling™ and Maxygen are U.S trademarks used by Maxygen.

Alison Trollope
Investor/Public Relations Department
Maxygen, Inc.
Phone (650) 298-5853
Fax (650) 298-5877