Hayward, CA- September 8, 2003 - Biolog, Inc. announced today that it has received a multi-year grant of $2.28 million from the National Institute of Allergy and Infectious Diseases (NIAID). This grant will fund additional development of advanced detection and identification methods for the most important bacteria, including those that could be used in acts of bioterrorism. The company will use the unprecedented depth, scope, and detailed information obtained from the Phenotype MicroArray™ (PM) cellular assay technology to develop several advanced diagnostic tools. These new tools will improve the simplicity, speed, and accuracy of bacterial identification far beyond the technology currently available to medical laboratories.

The company is continuing to develop its innovative Phenotype MicroArray technology and is currently expanding it to human and mouse cell lines. This new capability will complement the applications already developed for use with bacteria, yeast, and filamentous fungi.

Phenotype MicroArrays represent a fundamental platform technology that allows scientists to easily and efficiently test hundreds to thousands of cellular traits simultaneously. The technology can be used to determine cellular phenotypic expression in many areas of research and development.

The two most important near term applications are using PMs to determine the effects of genetic changes on cells and to determine the effects of drugs on cells. This grant is specifically intended to further the state of the art in rapid diagnostic solutions for the microbiology laboratory. The phenotypic response of cells can change dramatically depending on the cell’s physiological state. A key, unique advantage of PM technology is that it allows a scientist to detect effects of a change under hundreds to thousands of states of the cell.

Tim Mullane, President & CEO stated, “This grant allows us to substantially accelerate our development of not only our Phenotype MicroArray technology but also our Microbiology Identification products. We have been innovators in broad based microbial identification products for over 15 years and we now can apply our expertise to new critical challenges faced by microbiology laboratories worldwide. If a bioterrorism attack occurred, depending upon the target, for instance humans, animals, or agriculture, the samples indicating this attack could be received by many types of microbiology laboratories.” Biolog’s MicroLog™ and OmniLog® microbial identification systems are used in over 60 countries worldwide in all fields of microbiology. The laboratories using these systems range from human and animal clinical labs, to pharmaceutical, personal care product and food companies, to research in government and university laboratories.

Throughout its 15 year history, Biolog has repeatedly been successful in obtaining SBIR and other grants from various agencies within the U.S. government: NIH, NSF, DOE, and NASA. These agencies have awarded grants to aid in the development of technology and products needed in microbiology and cell biology. Every grant received by Biolog to date has resulted in the successful development and commercialization of a new product.

Biolog, a privately held company based in Hayward, CA is a pioneer in the development of powerful new cell analysis tools for solving critical problems in clinical, pharmaceutical, and biotechnology research and development. The company’s Phenotype MicroArray technology and OmniLog® PM System can be used in the discovery and development of new drugs as well as bioactive agents for animal and plant applications.