Contacts:	Sharon Tetlow diaDexus 650-246-6400 stetlow@diadexus.com		Compugen Tsipi Haitovsky +972-56-371-224 tsipi@cgen.com
	Noonan/Russo Communications Cynthia Isaac 212-696-4455 ext. 272 c.isaac@noonanrusso.com

COMPUGEN AND DIADEXUS ANNOUNCE AGREEMENT FOR IDENTIFICATION OF NEW DIAGNOSTIC MARKERS AND THERAPEUTIC TARGETS

Tel Aviv, Israel and San Francisco, CA - (BW HealthWire) - January 16, 2002 - Compugen, Ltd. (Nasdaq:CGEN - news) and diaDexus today announced an agreement designed to expand and accelerate diaDexus' ability to identify and validate diagnostic markers and therapeutic targets based on Compugen's advanced computational biology analysis of genomic and proteomic databases.

Under the terms of the agreement, Compugen's LEADS computational biology platform and related tools will be used by diaDexus to perform an integrated analysis of both proprietary and public genomic and proteomic databases. diaDexus will use the results in its efforts to develop human diagnostic and therapeutic products. In return, Compugen will receive undisclosed cash payments and a warrant to purchase equity in diaDexus.

"We believe that Compugen provides a unique solution for analyzing the vast amount of data represented in both public and proprietary databases," said Ronald M. Lindsay, Ph.D., Chief Scientific Officer of diaDexus. "The LEADS platform is especially suited to solving a major post-genomic problem -- determination of the splice variants pattern of individual genes and changes in these patterns that may identify novel diagnostic markers or drug targets for diseases such as cancer. The output from this project will make a significant contribution to our discovery efforts and eventually to our product candidate pipeline."

"We are very pleased to collaborate with diaDexus and to have an opportunity to share in its future success," said Mor Amitai, Ph.D., President and Chief Executive Officer of Compugen Ltd. "We are proud to have diaDexus, a company building the infrastructure to turn genomic information into diagnostic and therapeutic products, join the impressive list of pharmaceutical and biotechnology companies that have chosen our LEADS platform. These include market leaders such as Novartis AG and Warner-Lambert Company, a wholly-owned subsidiary of Pfizer Inc."

Compugen's LEADS platform, a sophisticated, biologically verified system, will be used to create a comprehensive view of predicted genes, mRNA transcripts, splice variants, proteins and detailed functional annotation. LEADS accurately models a series of complex biological phenomena and provides life science researchers with solutions for computation-intensive problems with the goal of accelerating the development of drugs and biological products. Using its proprietary LEADS computational biology platform, Compugen has identified thousands of novel genes and alternatively spliced variants believed to be unique.

About Compugen
Compugen (Nasdaq:CGEN - news) is a leader in merging computational technologies with biology and medicine to enhance drug discovery and development. The Company's innovative predictive biology technologies support two complementary product development and commercialization divisions. Compugen's BioApplications division offers high value products and services that enable and enhance the discovery and functional analysis of genes, proteins and cell processes. Compugen's Novel Genomics division is developing human therapeutic and diagnostic products based on target genes, proteins and other intellectual property discovered through the Company's innovative research activities. For additional information, please visit Compugen's Corporate Web Site at www.cgen.com and the Company's Internet research engine for molecular biologists, www.LabOnWeb.com.

About diaDexus
diaDexus, based in South San Francisco, California, is focused on translating genomic sequence data into novel diagnostic and therapeutic products. diaDexus has utilized genomics and bioinformatics to identify thousands of disease-associated molecular targets. Currently diaDexus has three diagnostic product candidates in late-stage pre-clinical development. For more information, please visit www.diadexus.com.

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include words like "may," "expects," "believes," and "intends," and describe opinions about future events. These forward-looking statements involve known and unknown risks and uncertainties that may cause the actual results, performance or achievements of Compugen to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Some of these risks are: changes in relationships with collaborators; the impact of competitive products and technological changes; risks relating to the development of new products; the ability to implement technological improvements; the ability of Compugen to obtain and retain customers. These and other factors are identified and more fully explained under the heading "Risk Factors" in Compugen's Registration Statement on Form F-1 and annual report filed with the Securities and Exchange Commission.