[October 14, 2013]

Deltagen Reports 2013 First Quarter Financial Results

Deltagen, Inc. (Pink Sheets: DGEN), a provider of drug discovery tools and services to the biopharmaceutical industry, today reported unaudited consolidated financial results for the three months ended March 31, 2013.

Revenues: The Company's consolidated revenues for the three months ended March 31, 2013 totaled $0.194 million. The revenues in the first quarter of 2013 were attributable primarily to license fees associated with the provision of knockout mice and related phenotypic data pursuant to orders placed by customers under the Company's DeltaOne^TM program. The consolidated revenues for the period included $0.040 million for Xenopharm, Inc. ("Xenopharm"), a wholly-owned subsidiary of the Company. As of the third quarter of 2012 Benten BioServices' revenues and expenses were no longer consolidated with those of Deltagen and its wholly-owned subsidiaries, Xenopharm and Deltagen Research Laboratories, L.L.C. The application of the Equity Method of Accounting now reports Benten BioServices' operating results as a single line in Deltagen's financial statements, which reflect Deltagen's 43.8% ownership interest in Benten BioServices. The Equity Method of Accounting is described in the Company's Notes to Consolidated Financial Statements and Management's Discussion and Analysis of Financial Conditions and Results of Operations, which are posted on the Company's website (www.deltagen.com).

Expenses: Total consolidated expenses for the three months ended March 31, 2013 were $0.258 million. The expenses in the first quarter of 2013 were attributable primarily to labor costs and other general and administrative expenses, including $0.068 million in royalty and commission expenses. As of March 31, 2013, the Company had incurred aggregate total royalties to Lexicon Pharmaceuticals, Inc. ("Lexicon") of $5.735 million to a March 2005 settlement agreement between Lexicon and the Company. Under the settlement, the maximum aggregate amount of royalty payments due to Lexicon is $6.00 million. Accordingly, up to $0.265 million in contingent royalty payments remained owed to Lexicon as of March 31, 2013.

Net Income/Losses: Consolidated net losses before provision for income taxes for the three months ended March 31, 2013 were $0.541 million, which included a net loss of $0.063 million from operations and a recognized net loss of $0.478 million (43.8% of Benten BioServices' Net Operating Results) from investments made by the Company in Benten BioServices, Inc. ("Benten BioServices"), which was accounted for using the Equity Method of Accounting.

Cash, Cash Equivalents and Accounts Receivable: As of March 31, 2013, the Company had $0.120 million in consolidated cash and cash equivalents and $0.083 million in accounts receivable. The Company borrowed $0.100 million under a secured promissory note dated December 20, 2012 in a related-party transaction involving a trust managed by Robert Driscoll, the Company's CEO, which note carries a 0.025% interest per annum, compounded annually. The promissory note was paid in full on September 28, 2013.

Subsequent Events:

Benten BioServices: On May 15, 2013, due to a lack of operating capital, Benten BioServices ceased its operations and laid off its employees. In June 2013, Benten BioServices voluntarily commenced a complete liquidation and dissolution pursuant to Section 275 of the Delaware General Corporation Law. The Company expects to write off completely the carrying value of Benten BioServices in its second quarter 2013 financials.

Press Releases and Financial Disclosures: Commencing with the financial results for the second quarter of 2013, in an effort to adopt cost-saving measures, the Company will cease issuing on the wires press releases of its quarterly financial results. Instead, the Company intends to post its quarterly financial results on its website (www.deltagen.com) and issue on the wires press releases only for its annual financials on a calendar year basis.

The unaudited consolidated financial statements for the first quarter of 2013, accompanying notes, and Management's Discussion and Analysis of Financial Conditions and Results of Operations for such period will be posted on Deltagen's website (www.deltagen.com).

About Deltagen

Deltagen, Inc. is a provider of drug discovery tools to the biopharmaceutical industry, and offers access to its inventory of knockout mouse lines and related phenotypic data to enhance the efficiency of target validation and drug discovery. In addition, Deltagen offers target validation data in the areas of immunology and metabolic diseases. Deltagen's products and programs have been validated by customers and partners such as Eli Lilly & Co., GlaxoSmithKline, Merck & Co., Inc. and Pfizer Inc. For more information on Deltagen, visit the Company's website at www.deltagen.com.

Safe Harbor Statement

This press release contains "forward-looking statements," including statements about Deltagen's future revenues, cash flows and operating results, first-party royalty obligations and first-party licenses and intellectual property, as well as other matters that are not historical facts or information. These forward-looking statements are based on management's current assumptions and expectations and involve risks, uncertainties and other important factors, specifically including those relating to Deltagen's ability to achieve its operational objectives and revenue projections, that may cause Deltagen's actual results to be materially different from any future results expressed or implied by such forward-looking statements. Information identifying such important risk factors is contained in the Company's annual financial disclosure's "Management's Discussion and Analysis of Financial Conditions and Results of Operations", which can be found at Deltagen's website at www.deltagen.com. Deltagen undertakes no obligation to update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise.

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