3380 Central Expressway Santa Clara, CA 95051 Phone (408) 731-5000 www.affymetrix.com

Stephen Fodor, CEO and chairman
NASDAQ:AFFX

Overview

Affymetrix creates tools to fuel genomics research and applies semiconductor technology to the life sciences. Its products and services include its integrated GeneChip platform and its spotted array-making platform, referred to as Pin-and-Ring array technology.

GeneChip technology provides access to genetic information using miniaturized high-density arrays of oligonucleotide probes. Through its spotted array-making technology, Affymetrix has developed a method to create arrays with consistent spot size, a range of pre-selected spot diameters, flexibility in the nature of the fluids spotted and the surface on which the arrays are created, and high-positional accuracy. The technology relies on the use of surface-tension forces, with mechanisms for placing volumes of fluids onto surfaces.

Affymetrix said its products enable scientists to turn masses of genetic information into knowledge that will transform the quality of lives. Besides the world of drug discovery, Affymetrix also applies its technology to improve the availability and nutritional quality of food, protecting the environment and ensuring the safety of food and water.

Affymetrix ended 2001 on a positive note, settling all existing infringement litigation with Incyte Genomics Inc., of Palo Alto, Calif. The lawsuits involved several of Affymetrix’s microarray-related patents and Incyte’s RNA amplification patents. The companies agreed to cross-license under their respective intellectual property portfolios and they now are investigating possible commercial agreements. Financial terms were not disclosed.

In 2001, Affymetrix also settled all litigation with Oxford Gene Technology Ltd., of Oxford, UK, and with Hyseq Inc., of Sunnyvale, Calif. Simultaneously, Hyseq and Affymetrix formed a collaborative venture to develop and commercialize new opportunities in the DNA array market.

Partners

New collaborations for the company in 2001 included DeCode genetics Inc., of Reykjavik, Iceland, and Millennium Pharmaceuticals Inc., of Cambridge, Mass. Financial details of the deals were not disclosed.

Other partners include the following: AMDeC, American Home Products, Astra AB, Beckman Coulter Inc., Boehringer Ingelheim, The Cystic Fibrosis Foundation, Deltagen Inc., Eli Lilly & Co., Eos Biotechnology Inc., Gene Logic Inc., GeneData AG, Hoechst Marion Roussel Inc., Hewlett Packard Co., Howard Hughes Medical Institute, Human Genome Sciences Inc., InphoGene BioCom Inc., The Janssen Research Foundation, Lexicon Genetics Inc., The Medical Research Council (UK), Merck & Co. Inc., Metabolex Inc., Molecular Applications Group, MWG-Biotech AG, NEN Life Science Products, National Cancer Institute, National Institutes of Health, Novartis Pharmaceuticals Corp., Oncormed Inc., Orchid BioSciences Inc., Qiagen GmbH, Parke-Davis Pharmaceutical, Pfizer Inc., the Procter & Gamble Co., Research Genetics Inc., Rh ne-Poulenc Rorer, Rosetta Inpharmatics, The R.W. Johnson Pharmaceutical Research Institute, Sankyo Co. Ltd., Smithkline Beecham plc, Takara Shuzo Co. Ltd., Takeda Chemical Industries Ltd. and other companies and institutions.