Recent operating highlights include: Corporate and Product Development - Celera. In April, deCODE entered into agreements with Celera Corporation under which it has granted Celera non-exclusive worldwide licenses to deCODE's genetic markers for increased risk of major cardiovascular and metabolic diseases, including heart attack, stroke, atrial fibrillation (AF) and type 2 diabetes (T2D). Celera plans to incorporate them into risk assessment and testing services offered by its subsidiary Berkeley HeartLab, and deCODE will receive royalties on sales of tests and services utilizing its markers. - deCODE AF(TM). The company continued to expand the predictive power and clinical utility of its reference laboratory test for measuring risk of atrial fibrillation (AF) and stroke. Last month, deCODE scientists published the discovery of another common single-letter variation (SNP) in the sequence of the human genome conferring risk of AF and stroke. More than a third of people of European descent carry at least one copy of this new SNP on chromosome 16, putting them at more then 20% greater risk of AF and stroke than non-carriers. - Gene discovery. deCODE continues to reinforce its global leadership in the discovery of genetic risk factors for common diseases. In June, a deCODE team presented several new common SNPs linked to risk of skin cancer, three of which appear to confer risk through underlying mechanisms that are not modulated by sensitivity to the UV radiation in sunlight. These variants were integrated into the deCODEme(TM) and deCODEme Cancer(TM) scans, and one in particular, located in the keratin 5 gene, may make a promising drug target. In another study, deCODE scientists discovered a SNP on chromosome 21 that modulates risk of both kidney stones and osteoporosis. As both conditions are related to dysfunctional calcium metabolism, this finding may mark a new pathway for drug discovery. deCODE has also led the largest ever study of the genetics of schizophrenia, and, last month, the deCODE team and colleagues from the SGENE consortium published the discovery of several novel common SNPs linked to increased risk of the disease. - CAP Certification. Supporting the company's efforts to broaden the marketing and reimbursement of its DNA-based risk assessment tests, deCODE's CLIA-registered DNA isolation and genotyping laboratory has been accredited by the American College of Pathologists (CAP). The laboratory processes the company's deCODEme(TM) personal genome scans and risk assessment diagnostic tests. The US Centers for Medicare and Medicaid Services (CMS) has granted the CAP Laboratory Accreditation Program deeming authority, and its accreditations can also be used to meet many state certification requirements. Finance - Nasdaq Global Market reinstatement. In June, the listing of deCODE's common stock was reinstated to the Nasdaq Global Market. The reinstatement followed the Nasdaq Hearing and Listing Review Council's reversal of a decision in February by the Nasdaq Listing Qualifications panel under which the listing of deCODE's common stock was transferred to the Nasdaq Capital Market. Subsequent Events - On July 30, 2009, deCODE's stockholders approved the increase in deCODE's authorized shares of common stock from 150,000 to 1,150,000 and also approved the amendment of its Amended and Restated Certificate of Incorporation to allow for a reverse stock split at the discretion of deCODE's Board of Directors. These steps position the company to bring in new equity investment and to renegotiate its debt.

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