Paradigm Genetics, Inc.
Melissa Matson Manager,
Corporate Communications
(919) 425-3000

VDDI Pharmaceuticals
Kathleen Utley
Senior Admin. Director
(615) 467-3080

PARADIGM GENETICS AND VDDI PHARMACEUTICALS ESTABLISH COLLABORATION IN NOVEL ANTIBIOTIC DEVELOPMENT PROGRAM

RESEARCH TRIANGLE PARK, NC and BRENTWOOD, TN, February 26, 2002 -- Paradigm Genetics, Inc. (Nasdaq: PDGM) and VDDI Pharmaceuticals today announced a research and development collaboration for the development of antibiotics for the treatment of gram-positive bacterial infections. Under the terms of the agreement, VDDI will support Paradigm's research and development efforts, as well as pay potential royalties. In addition, Paradigm will have the option to make an unspecified equity investment in VDDI; further specific financial details were not disclosed.

VDDI has acquired rights to a new class of anti-microbial compounds discovered at the University of Alabama at Birmingham (UAB). These compounds specifically target the essential bacterial enzyme nicotinamide adenine dinucleotide synthetase (NADs). Stephen Porter, PharmD, President and Chief Executive Officer of VDDI, said "NADs plays a vital role in many biological processes in gram-positive bacteria, such as anthrax, including supporting the outgrowth and vegetative life cycle of spores. Anthrax kills by releasing three toxin proteins which are produced during the vegative stage and which work together to attack their host. Inhibitors developed against bacterial NADs effectively prevent outgrowth, and provide a unique anti-bacterial mechanism. Due to the specificity of the inhibitors, other organisms (such as humans and plants) should not be adversely affected. The inhibitors have the potential to be useful as antibiotics against a range of emerging resistant microbial pathogens including gram positive infections, such as Methicillin resistant Staph Aureus (MRSA), vancomycin resistant enterococcus (VRE) and systemic fungal infections."

Through the collaboration, Paradigm will initially use its proprietary metabolomics technology platform, MetaVantageTM, to prioritize lead compounds targeting NADS for further preclinical development. The agreement includes an option for Paradigm to pursue co-development of select compounds for antibiotic and anti-fungal applications with VDDI in human health as well as for any agrochemical applications.

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