COLOGNE, Germany (November 29, 2004) – Artemis Pharmaceuticals GmbH, here, and Schering AG, Berlin, have signed an agreement to cooperate in mouse genetics and genomics. Financial details were not disclosed.

Under the agreement, Artemis will generate various genetically engineered mouse models for Schering. Schering will use the mice in its drug discovery research activities to identify novel compounds and therapies for the treatment of severe diseases.

The generation of the mouse models will be based on Artemis’ proprietary ArteMice and ArteMice Conditional technologies, which allow the rapid, efficient and reproducible generation of complex genetically modified mice for use in drug discovery research.

In particular the technologies allow the functional analysis of genes, in an in vivo setting, to determine the role such genes play in disease processes and disease therapy.

Peter Stadler, managing director of Artemis, termed the agreement “scientifically and economically important for Artemis.

Artemis, a wholly owned subsidiary of Exelixis Inc., South SanFrancisco, CA, provides “ready made” and “custom built” mice to pharmaceutical and biotechnology companies for drug discovery research as well as to academic centers for basic research purposes.

Artemis also cooperates with Merck, Inc., Sanofi-Aventis, Bayer AG, BoehringerIngelheim, Biovitrum AB, Evotec Neurosciences, Regeneron Pharmaceuticals,Acceleron Pharma, Benitec, Exelixis, the German Cancer Research Center(DKFZ) and others.