June 3, 2002

News Release: Lead Anti-Cancer Compound Blocks Growth of Human Breast Cancer - Tumors in Animal Models

SIGNALGENE INC ("SGI-T")
SignalGene announced that it has achieved positive results in the first tests in animals of its proprietary, small molecule anti-cancer compound, SG292, designed under the Company's anti-angiogenesis program. The test results show that this compound inhibits the growth of human breast cancer tumors when administered orally and has no acute toxicity at high doses. "The positive results achieved in this round of animal testing provide clear evidence that SG292, the most advanced designed compound from our anti-angiogenic program, has significant therapeutic potential as an inhibitor of tumor growth", said Dr. Michael Dennis, President and CEO of SignalGene. "These results should advance our ongoing discussions with potential partners for this program in the field of oncology, and we are pursuing additional partnering opportunities based on other therapeutic indications for anti-angiogenic compounds".

The recently completed study, conducted by a leading contract research laboratory, demonstrated the ability of orally administered SG292 to inhibit tumor growth in xenograft models of aggressive human breast cancer in nude mice. Over a treatment period of 20 days, mean tumor growth in mice receiving SG292 was significantly reduced compared to controls. The SignalGene compound showed no obvious toxic effects over the period of treatment, and produced no adverse behavioral effects or changes in body weight.

Angiogenesis, the formation of new blood vessels, plays a major role in several diseases, especially the growth and metastasis of cancer. Angiogenesis inhibitors are currently under investigation by numerous groups as novel therapeutics for the treatment of diseases caused or supported by inappropriate growth of blood vessels, including growth of solid and metastatic tumors, diabetic retinopathy, age-related macular degeneration and psoriasis. The control of this process is expected to have important therapeutic applications for the treatment of such diseases.

SignalGene is a design-based drug discovery company dedicated to the creation and development of small molecule drug candidates for major human health disorders. By applying its innovative computer-aided drug design technology, the Company generates novel, optimized New Chemical Entities (NCEs) for development as human therapeutics. This unique approach provides SignalGene with a competitive advantage by allowing it to accelerate the identification of drug candidates with an increased probability of clinical success.

This press release contains forward-looking statements including technology development efforts and expectations, as well as the Company's technologies and strategies. The actual results may differ materially from those projected in the forward-looking statements due to numerous risks and uncertainties that exist in the Company's operations, development efforts and the business environment, including without limitation: the ability to deliver its products to corporate collaborators; the progress of product research and development activities; the ability to enter into future collaborations with pharmaceutical and biotechnology companies. The forward-looking statements contained herein represent the judgement of SignalGene as of the date of this release. SignalGene disclaims any intent or obligation to update any forward-looking statements except to the extent required by law. TEL: (514) 850-2421 Michael Dennis, Ph.D., President and CEO

SignalGene Inc. TEL: (514) 850-2409 Doris Belzile, CA, Chief Financial Officer

SignalGene Inc. Website: http://www.signalgene.com

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