January 18, 2006

deCODE genetics (Nasdaq:DCGN) today announced its acquisition of privately-held Icelandic cancer research firm Urdur, Verdandi Skuld (UVS). The acquisition enables deCODE to broaden and enhance its cancer program by applying the company’s unique gene discovery and drug development capabilities to an even larger set of population-based resources.

“UVS has organized cancer research in Iceland since 1998 and has recruited a large number of patients and controls into their studies. This acquisition strengthens our ability to use population genetics to develop better methods to diagnose, treat and prevent cancer. This is our goal and the goal of the thousands of patients and family members, as well as the dedicated clinicians and scientists, who have taken part in our work and that of UVS over the years,” said Kari Stefansson, CEO of deCODE.

deCODE will acquire UVS for $5.5 million that will be paid in deCODE common stock based on the average closing price for the 30 days preceding the acquisition.

About deCODE genetics
deCODE (Nasdaq:DCGN) is a biopharmaceutical company applying its discoveries in human genetics to the development of drugs for common diseases. deCODE is a global leader in gene discovery – our population approach and resources have enabled us to isolate key genes contributing to major public health challenges from cardiovascular disease to cancer, genes that are providing us with drug targets rooted in the basic biology of disease. deCODE is also leveraging its expertise in human genetics and integrated drug discovery and development capabilities to offer innovative products and services in DNA-based diagnostics, bioinformatics, genotyping, structural biology, drug discovery and clinical development. deCODE is delivering on the promise of the new genetics.SM Visit us on the web at www.decode.com.

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