Acacia Research Subsidiary, CombiMatrix, Names Medical Industry Executive Gerald Knudson as Chief Executive Officer

Business Wire, Feb 4, 2000

Business Editors &Health/Medical Writers

PASADENA, Calif.--(BUSINESS WIRE)--Feb. 4, 2000

Acacia Research Corp. (Nasdaq:ACRI) announced today that subsidiary CombiMatrix Corp. has named medical industry executive Gerald Knudson as its President and Chief Executive Officer.

Knudson, who will also serve as a member of the Board of Directors, has held a number of prominent executive positions including: President, Polaroid Medical Systems; President &CEO, Resonex Inc.; Senior Vice President, Acuson Inc.; and senior management positions with General Electric's Medical Systems. Most recently, Knudson was Executive Vice President of Sterling Diagnostic Imaging Inc.

&uot;Mr. Knudson's stature and experience in the medical diagnostics industry makes him a terrific choice as CombiMatrix's CEO,&uot; said Acacia Research CEO, Paul R. Ryan. &uot;His deep understanding of technology-oriented businesses qualifies him as a natural leader for CombiMatrix's next phase of growth. Jerry has distinguished himself in the industry with his involvement in Acuson's successful acceleration from IPO to number one global market leader in diagnostic ultrasound imaging, his involvement in Sterling's transformation that led to a successful sale of the business to AGFA, and his contribution to GE's high-growth medical systems business. We are confident that through his leadership, CombiMatrix can play an important role in the future of genomic research and medical diagnostics.&uot;

&uot;I have a clear vision of the role CombiMatrix's advanced biochip technology can play in bringing more efficient and effective products to genomic research and medical diagnostics,&uot; stated Knudson. &uot;The CombiMatrix array processor technology can serve the needs of the biopharmaceutical industry with its cheaper, faster ability to develop custom biochips. It also promises to open additional avenues in applications involving proteomics, bioinformatics, electrochemistry, and medical diagnostics. My career affords me the background and the entrepreneurial experience to lead the fast track commercialization of CombiMatrix's products. I look forward to working together with the talented and dedicated people at CombiMatrix to bring this important new technology to the market.&uot;

About CombiMatrix Corp.

CombiMatrix's biochip array processor system integrates semiconductor technology with new developments in biotechnology and chemistry. CombiMatrix's core technology utilizes a unique array of &uot;virtual reactors&uot; that have the potential to reach array densities in excess of 1,000,000 sites per cm2. ArrayChips are produced economically using standard semiconductor fabrication techniques. In initial applications, CombiMatrix expects its array system to allow researchers to perform hundreds of DNA tests on a sample of genetic material simultaneously. Genomic tests are frequently used in medicine to help develop new drugs. As new therapeutic entities are developed, biochip array products are expected to play an important role in toxicity and clinical studies as well as diagnostic products.

About Acacia Research Corp.

Acacia Research develops and operates Internet and technology-related businesses as well as acquires strategic positions in other companies. Acacia Research's majority-owned subsidiaries include: Acacia Launchpad LLC (Internet incubator), CombiMatrix Corp. (biochip technology), MerkWerks Corp. (software development), Soundbreak.com Incorporated (music broadcast and lifestyle Internet site), and Soundview Technologies Incorporated (v-chip technology). Significant minority-owned affiliates include: The EC Company (b2b eTransactions), Greenwich Information Technologies LLC (video-and audio-on-demand technology), Mediaconnex Communications (b2b e-commerce), and Signature-mail (personalized e-mail service). Acacia Research's Web site is located at http://www.acaciaresearch.com.

This release contains forward-looking statements within the meaning of the &uot;safe harbor&uot; provisions of the Private Securities Litigation Reform Act of 1995. These statements address future events and conditions concerning the Company's and its subsidiary's business plans. Such statements are based on management's current expectations and are subject to a number of factors and uncertainties, such as future economic conditions, changes in consumer demand, legislative, regulatory and competitive developments, and other circumstances affecting anticipated revenues and costs, which may cause actual results to differ materially. The Company expressly disclaims any future obligation or undertaking to update or revise any forward-looking statement contained herein.