Genaissance Pharmaceuticals Obtains $4.5 Million Secured Debt Financing

Genaissance Pharmaceuticals Obtains $4.5 Million Secured Debt
Financing 


New Haven, Conn., April 22  /PRNewswire-FirstCall/ -- Genaissance
Pharmaceuticals, Inc. (NASDAQ:GNSC) today announced it closed on a two-year,
$4.5 million loan with Xmark Funds and affiliates.

Proceeds from the loan were used to repay the remaining $2.5 million term loan
with Comerica Bank and to provide additional working capital. Genaissance also
issued warrants to Xmark Funds and affiliates to purchase an aggregate of two
million shares of Genaissance common stock at $2.25 per share.  In addition,
Genaissance granted registration rights with respect to the shares underlying
the warrants.

The loan bears interest at five percent and has no scheduled principal
payments.  Principal is due in full on April 21, 2007, or earlier, depending on
the Company's cash liquidity.

"This funding enhances our cash flow and overall liquidity, as there are no
longer scheduled principal payments or minimum cash balance requirements. We
are pleased that Xmark has provided this funding and appreciate their
confidence in our business," said Kevin Rakin, President & Chief Executive
Officer of Genaissance.

Genaissance Pharmaceuticals, Inc. is developing innovative products based on
its proprietary pharmacogenomic technology and has a revenue-generating
business in DNA and pharmacogenomic products and services.  Genaissance also
markets its proprietary FAMILION(TM) Test, designed to detect mutations
responsible for causing Familial Long QT and Brugada Syndromes, two causes of
sudden cardiac death.  The Company's product development strategy is focused on
drug candidates with promising clinical profiles and finding genetic markers to
identify a responsive patient population.  This strategy is designed to enable
Genaissance to leverage existing clinical data and, thus, reduce the costs and
risks associated with traditional drug development and increase the probability
of clinical success and commercialization.  The Company's lead therapeutic
product, vilazodone for depression, is in Phase II of development.  For more
information on Genaissance, visit the Company's website at:
http://www.genaissance.com/ .

This press release contains forward-looking statements, including statements
about the expected growth and development of Genaissance's business, such as
Genaissance's ability to effectively complete its vilazodone and clozapine
programs, detect associations between clinical outcomes and genetic variation,
the ability to assess how genetic variation can affect drug response, efforts
to build a drug candidate pipeline, the timing and outcome of its genetic
testing programs and the ability of Genaissance to apply its technologies to
the development, marketing and prescribing of drugs and Genaissance's ability
to detect associations between clinical outcomes and genetic variation.  Such
statements are subject to certain factors, risks and uncertainties that may
cause actual results, events and performance to differ materially from those
referred to in such statements, including, but not limited to, Genaissance's
ability to fund its drug development efforts, the extent to which genetic
markers (haplotypes) are predictive of clinical outcomes and drug efficacy and
safety, the attraction of new business and strategic partners, the adoption of
the Company's technologies by the pharmaceutical industry, the acceptance of
the Company's cardiac tests by health care providers, the timing and success of
clinical trials, competition from pharmaceutical, biotechnology and diagnostics
companies, the strength of the Company's intellectual property rights and those
risks identified in the Annual Report on Form 10-K for the year ended December
31, 2004, filed with the Securities and Exchange Commission on March 15, 2005,
and in other filings the Company makes with the Securities and Exchange
Commission from time to time.  The forward-looking statements contained herein
represent the judgment of Genaissance as of the date of this release. 
Genaissance disclaims any obligation to update any forward-looking statement. 

DATASOURCE: Genaissance Pharmaceuticals, Inc.



CONTACT:  Kevin Rakin of Genaissance Pharmaceuticals, Inc., President

& Chief Executive Officer, [phone], ; Rhonda

Chiger of Rx Communications Group, Investors, [phone],

; Tom Redington of Redington, Inc., Media, [phone],

 



Web site:  http://www.genaissance.com/ 

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