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Orchid Cellmark Purchases ReliaGene Technologies, Inc.
Princeton, N.J. - October 31, 2007
Orchid Cellmark Inc. (Nasdaq: ORCH), a leading worldwide provider of identity DNA testing services, today announced that it has acquired the outstanding stock of ReliaGene Technologies, Inc. for a purchase price of $5.6 million in cash and 560,539 shares of Orchid Cellmark restricted common stock. The purchase price is subject to adjustment based on ReliaGene’s working capital at closing and future revenue levels. A portion of the purchase price will be held in escrow subject to satisfying certain conditions including the seller’s indemnification obligations. ReliaGene is a prominent and well respected provider of forensic and paternity DNA analysis services based in New Orleans, Louisiana.
"The acquisition of ReliaGene fits the criteria we are seeking in accelerating the growth of our business through acquisitions. There is essentially no customer overlap between the two companies and we believe the combined forensic casework, CODIS and paternity laboratory testing volumes should increase our operational efficiencies" said Thomas Bologna, President and Chief Executive Officer of Orchid Cellmark.
Dr. Sudhir Sinha, founder of ReliaGene said, "Having watched the progress Orchid Cellmark has made over the last year and knowing this business well, I strongly believe the strength of the combined companies will be very beneficial to both Orchid Cellmark and ReliaGene customers." Dr. Sinha further added, "As a believer in the strength of the combined companies, and what the combination affords our customers, I look forward to working with the Orchid Cellmark team in integrating ReliaGene into Orchid Cellmark."
Thomas Bologna, in a letter to customers of both companies, further added "We believe this merger of two of the largest and most experienced DNA labs in the country will enable us to provide you with unparalleled service and will give us the resources to meet your growing needs."
About Orchid Cellmark
Orchid Cellmark Inc. is one of the oldest and most experienced companies in the human identity testing field, providing DNA forensic testing services for criminal investigations, paternity and family relationship testing services for child support, immigration and estate matters and DNA identity profiling and preservation for security applications. Orchid Cellmark’s strong market positions in these segments reflect the company’s accredited laboratories in the U.S. and U.K., its innovative genetic analysis technologies and expertise and the world-renowned Cellmark brand that has been associated with exceptional quality, reliability and customer service for more than two decades. More information on Orchid Cellmark can be found at www.orchid.com.
Contact:
Orchid Cellmark Inc.
609-750-2200
info@orchid.com




