Genaissance to Raise Approximately $6 Million in Private Placement

Genaissance to Raise Approximately $6 Million in Private
Placement 


NEW HAVEN, Conn., Nov. 19  /PRNewswire-FirstCall/ -- Genaissance
Pharmaceuticals, Inc. (NASDAQ:GNSC) announced today that it has entered into
definitive agreements with institutional investors and other accredited
investors with respect to the private placement of 3.55 million shares of newly
issued common stock, together with warrants to purchase 3.55 million shares of
common stock, for a total purchase price of approximately $6 million.  The
transaction is subject to customary closing conditions and is expected to close
later today.  The net proceeds from the private placement are expected to be
used for general corporate purposes, including repayment of debt.

The securities issued in the private placement have not been registered under
the Securities Act of 1933, as amended, and may not be offered or sold in the
U.S. absent registration or an applicable exemption from registration
requirements.  As part of the transaction, Genaissance has agreed to file a
registration statement with the Securities and Exchange Commission within 30
days of the closing covering the resale of the shares of common stock, as well
as the shares of common stock issuable upon exercise of the warrants, issued in
the private placement.

This press release contains forward-looking statements, including statements
about the expected closing of the private placement and the use of the offering
proceeds.  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, the satisfaction of closing conditions, the extent to which
Genaissance will be able to operate on its existing capital resources,
uncertainties relating to Genaissance's ability to fund the development of
vilazodone, its future financial results, the growth and development of
Genaissance's business and market opportunities, uncertainties relating to
product development and regulatory actions or delays, the attraction of new
business and strategic partners, the adoption of our technologies by the
pharmaceutical industry, the acceptance of our cardiac tests by health care
providers, the timing and success of clinical trials, competition from
pharmaceutical, biotechnology and diagnostics companies and those risks
identified in our Quarterly Report on Form 10-Q for the quarter ended September
30, 2004, filed with the Securities and Exchange Commission on November 15,
2004, and in other filings we make 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, President & Chief Executive Officer of Genaissance

Pharmaceuticals, Inc., [phone], ; or Rhonda

Chiger (investors) of Rx Communications, [phone],  



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

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