On September 6, 2001, Jack T. Stapleton, M.D., Professor of Medicine at the University of Iowa Roy J. and Lucille A. Carver College of Medicine and Director of the Helen C. Levitt Center for Viral Pathogenesis and Disease, and his colleagues published "Effect of Coinfection with GB Virus C on Survival Among Patients with HIV Infection" in the "New England Journal of Medicine" (Xiang, et. al., NEJM 2001; 345:707-714). Dr. Stapleton's research showed that patients infected with both HIV and GBV-C had a significantly reduced mortality rate compared to those infected only with HIV. Mortality of HIV-infected patients over the 4.1-year mean duration of the study was 28.5% for those with an HGV infection compared to 56.4% for those without HGV infection (p<0.001). This study confirmed previous reports suggesting delayed progression of HIV in patients coinfected with HGV and, furthermore, found that the infectious HGV clone developed by the University of Iowa research group inhibited the growth of HIV in a cell culture model.

Dr. Stapleton stated, "Our findings may have implications for future treatments for HIV. I am pleased to be working with Genelabs and look forward to expanding upon our studies elucidating the role HGV may play in increasing survival of HIV-infected patients."

Through the collaboration, Genelabs has granted UIRF a nonexclusive research license to Genelabs' HGV patent portfolio and the parties have exchanged research materials. Because of the potential importance of the University of Iowa's observations showing improved survival for HIV patients who also have an HGV co-infection, UIRF and Genelabs will make research licenses and materials available at no cost to other academic institutions interested in further scientific research in this area.

Genelabs scientists first discovered HGV, which is transmitted by blood and other bodily fluids, while seeking to identify what was then an unknown hepatitis virus. Patents covering the HGV genome, peptides and their uses have issued to Genelabs. Since the discovery of HGV was announced by Genelabs in 1995, HGV infection has not been associated with any significant disease.

The virus has been reported to be found in approximately 2 percent of all blood donated in the United States, in 15 percent of people infected with hepatitis C, and as high as 40 percent of people infected with HIV. Genelabs has previously granted diagnostics licenses for HGV to Boehringer Mannheim (now Roche Diagnostics), Chiron Corporation and Ortho Diagnostic Systems. Genelabs retains all other commercial rights to its discovery of HGV.

Genelabs Technologies, Inc. is a biopharmaceutical company pioneering the discovery and development of novel pharmaceutical products to improve human health. We have built drug discovery and clinical development capabilities that can support various research and development projects, while concentrating these capabilities on two core programs: developing a late-stage product for lupus and discovering novel drug candidates targeting DNA. Our research efforts are currently directed toward anti-microbial drug discovery and we have synthesized many lead compounds targeting DNA in bacteria, fungi and viruses. Our clinical development efforts are concentrated on Aslera(TM), potentially the first new drug for systemic lupus erythematosus in over 40 years, for which we have an exclusive license from Stanford University.

NOTE: This press release contains forward-looking statements. These forward-looking statements are based on Genelabs' current expectations and are subject to uncertainties and risks that could cause actual results to differ materially from the statements made. Uncertainties and risks include without limitation the early stage of Genelabs' research programs and uncertainties associated with the optimization of compounds, including whether a compound will advance to preclinical testing, clinical trials, or ultimately become a product, and the uncertainty of the timing of any of these; the validity, scope and enforceability of patents related to the company's technologies; whether the results of the company's clinical trials of Aslera(TM) and other supporting information will be sufficient to support the approval of Aslera(TM) by the U.S. Food and Drug Administration; delays regarding the regulatory approval process including the timing and scope of approval received, if any; uncertainties and risks regarding market acceptance of Aslera(TM) as a treatment for systemic lupus erythematosus (SLE or lupus); the company's capital requirements and history of operating losses; and uncertainties and risks regarding the company's ability to consummate strategic or corporate partner transactions on favorable terms or at all. The active ingredient in Aslera(TM) is prasterone, the synthetic equivalent of the androgenic hormone dehydroepiandrosterone (DHEA). Products containing DHEA are currently being marketed by others as dietary supplements. The company has not submitted applications for regulatory review of Aslera(TM) outside the U.S. In addition, neither U.S. nor foreign regulatory authorities have made a determination as to the safety or efficacy of Aslera(TM) for SLE. Please see the information appearing in the company's filings with the Securities and Exchange Commission for more discussion regarding these uncertainties and risks and others associated with the company's research programs, early stage of development and other risks which may affect the company. The company does not undertake any obligation to update these forward-looking statements to reflect events or circumstances after the date of this release.

This and past press releases are available at Genelabs' website at http://www.genelabs.com and at PR Newswire's Company News on Call at http://www.prnewswire.com.

CONTACT: Matthew M. Loar, Chief Financial Officer of Genelabs Technologies, Inc., +1-650-562-1424

www.aegis.org