IPOs/recent issues: LEXICON GENETICS –

Woodlands, Texas

Went public 4/7/2000 at $22 apiece

Filing Range:10 mil. shares @ $22 to $24

Shares Outstanding:47.52 mil. shares

Underwriters:J.P. Morgan Securities

Credit Suisse First Boston (Co-lead)/CIBC World

Markets/Punk, Ziegel & Co.

FINANCIALS

(Data in $ millions)

Y/E Y/E

12/98 12/99

Total Revenue $2.24 $4.74

Net Loss -7.84 -13.01

The Company:

Founded in July 1995, Lexicon Genectics is a genomics company using proprietary gene trapping technology to discover thousands of novel genes and to expand its OmniBank library of tens of thousands of knockout mouse clones for drug discovery. The company has established an Internet exchange, Lexgen.com, to enable researchers worldwide to access its OmniBank library and to form collaborations with the company to discover pharmaceutical products based on genes and knowledge of their function. Through Lexicon’s ongoing collaborations with pharmaceutical companies, biotechnology companies and academic researchers, the company receives fees and may obtain royalties and milestone payments from commercialization of pharmaceutical products developed using its genomics technologies. Lexicon has created three gene discovery and functional genomics resources for drug discovery: Human Gene Trap database, which presently contains DNA sequence from approximately 50,000 human genes that Lexicon has trapped from human chromosomes and analyzed in a relational database; the OmniBank database and mouse clone library, which presently contains more than 70,000 embryonic stem (ES) cell clones stored in liquid nitrogen freezers and identified by DNA sequence in a relational database; and Lexgen.com, a genomics Internet exchange through which researchers at pharmaceutical and biotechnology companies and academic institutions worldwide subscribe to the company’s OmniBank database to conduct Web-based, bioinformatics mining of genes, acquire knockout mouse clones and determine the function of genes with the company under e-Biology collaborations.

Proceeds:

Estimated net proceeds of $219.9 million will be used to increase functional Genomics research using knockout mice to define the functions of genes that encode potential drug targets and therapeutic proteins; to expand Human Gene Trap database and OmniBank database and library; to generate full-length sequences of a prioritized set of genes that appear by bioinformatics analysis to encode potential drug targets and therapeutic proteins; and to fund working capital.

Venture Backers:

Patricof & Co. Ventures Inc., Apax Partners & Co., Baylor College of Medicine, BCM Technologies Inc.

Board Members:

Arthur SandsSam Barker

C. Thomas CaskeyGordon Cain

William McMinnPatricia Cloherty

Stephen BanksPaul Haycock