deCODE genetics Announces Third Quarter 2008 Financi...(are not linked to fair pigmentation...)

linked to fair pigmentation traits that also make certain people prone

to freckling and sunburn. These SNPs, both located on chromosome 1, may

therefore provide new insight into an underlying biological mechanism

causing BCC, independent of the impact of exposure to ultraviolet (UV)

radiation in sunlight. Approximately 2% of people of European descent

carry two copies of the risk versions of both SNPs, and are at a 170%

greater risk of BCC than those who do not carry the risk variants.

These SNPs were immediately incorporated into deCODEme(TM).

Corporate Development and Finance

- Strategic Review. Last month, deCODE announced that it is conducting a

review of its long-term business strategy. deCODE has utilized its

capabilities in medicinal chemistry, structural biology and human

genetics to develop product and intellectual property portfolios in

both therapeutics and DNA-based diagnostics. The goal of this strategic

review is to optimize the value of these assets for its shareholders by

sharpening the focus of its business, selling non-core assets, securing

strategic partnerships, and utilizing the resources generated to

underpin product development and marketing efforts in its core

business. The company has engaged the Stanford Group Company to assist

in evaluating strategic alternatives and in executing swiftly on the

results of this review through the identification of buyers and

partners for non-core business units, programs and intellectual

property. deCODE plans to provide an update on this process in

tomorrow's conference call. In order to provide more time for the

completion of this review and the execution of alternatives including

the sale of assets, deCODE announced that it had elected to utilize a

30-day grace period for the scheduled
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