WaferGen Bio-systems Acquires a Leading Next-Generation Sequencing (NGS) Library Preparation Business and Announces Changes to

   WaferGen Bio-systems Acquires a Leading Next-Generation Sequencing (NGS)
 Library Preparation Business and Announces Changes to its Board of Directors

Acquisition propels the Company to being a major player in the NGS sample prep
market

PR Newswire

FREMONT, Calif., Jan. 7, 2014

FREMONT, Calif., Jan. 7, 2014 /PRNewswire/ --WaferGen Bio-systems, Inc.
(QTCQB: WGBS) announced today the acquisition of the NGS library preparation
business from IntegenX Inc. Pursuant to the asset purchase agreement,
WaferGen Bio-systems, Inc., through Wafergen, Inc., its wholly owned
subsidiary, acquired on January 6, 2014 substantially all of the assets of
IntegenX's product line used in connection with developing, manufacturing,
marketing and selling instruments and reagents relating to library preparation
for NGS, including the Apollo 324^TM instrument and PrepX^® reagents. The
purchase price for the acquired business was composed of (1) an up-front cash
payment of $2.0 million, (2) a $1.25 million secured promissory note due on
January 6, 2017 (repayable early in certain circumstances), (3) up to three
earn-out payments payable based on certain revenue thresholds in 2014, 2015
and 2016, respectively, and (4) Wafergen, Inc.'s assumption of certain
liabilities related to the acquired business. Additional information on the
transaction can be found in WaferGen's Report on Form 8-K filed with the SEC
on January 6, 2014.

"We are very excited about adding IntegenX's NGS library prep business to our
product portfolio. It is highly synergistic with our existing products,
especially our NGS target enrichment SmartChip TE^TM offering," stated Ivan
Trifunovich, President and CEO of WaferGen Bio-systems. "Serving the same
customer base, the two products together address a wide spectrum of customer
needs in sample preparation for NGS and enable one-stop shopping for
laboratories performing targeted sequencing. The fully automated Apollo
324^TM library prep solution has been a market leader in the low to medium
throughput NGS market segment with an expanding installed base, serving a
diverse set of clients from university research labs, pharmaceutical and
agricultural companies, to diagnostic CLIA labs. It has generated uniformly
positive customer feedback for its superior reliability, turnaround and
hands-on time, as well as sample quantity input requirement. We intend to
build upon its success with innovative new applications for this system, as
well as with integrated products that include the SmartChip TE^TM platform."

Concurrent with the acquisition of the IntegenX assets, and following the
Company's September 2013 fundraise, WaferGen is making additional changes to
its Board of Directors, reducing its size from 9 to 7 and adding significant
directly-relevant domain knowledge and management experience. Effective upon
the closing of the transaction, Robert Schueren, CEO of IntegenX, joined
WaferGen's Board of Directors. Mr. Schueren commented, "I am very pleased
with the sale of our NGS library prep business to WaferGen, as the product
will find a great home for future growth. IntegenX will continue to focus on
its RapidHIT^TM human DNA identification business, which serves a very
different customer base from the Apollo 324^TM product line. I am confident
that Apollo's full potential will be achieved under WaferGen's leadership, as
the Company's focus is squarely on the rapidly expanding NGS market. I am
excited about joining WaferGen's Board and I am looking forward to
contributing to the Company's future success." Robert Schueren has held
leadership positions in life science and diagnostic companies for more than
two decades. Since April 2013, Mr.Schueren has been the Chief Executive
Officer of IntegenX and a member of its Board of Directors. Previously he was
Vice President and General Manager, Genomics for Agilent Technologies, where
he oversaw a several hundred million dollar product portfolio, including the
creation and successful commercialization of SureSelect^TM. Prior to joining
Agilent in 2010, he was the Global Head of Clinical Biomarkers and Operations,
and Deputy Global Head of Molecular Medicine Labs for Genentech, Inc., a
company he joined in 2006.

In addition, the Board appointed William McKenzie as a director, effective
December 30, 2013. William McKenzie has over 25 years of experience building
new businesses in the global life sciences and diagnostics sectors. Most
recently, Mr.McKenzie served as Vice President and General Manager of
Molecular Diagnostics at PerkinElmer, Inc. from June, 2010 until December
2012. Previously he served in various other senior roles at PerkinElmer after
joining the company in 2005, including serving as Business Development
Director then Strategic Marketing Director of Molecular Medicine, and then as
Global Business Director of Genetic Screening. Prior to PerkinElmer,
Mr.McKenzie worked for more than 12 years in positions of increasing
responsibility at Millipore.

At the same time, Scott Davidson and Joseph Pesce, representatives of Great
Point Partners, stepped down from the Board, effective December 30^th, in
order to focus their energies on the firm's other portfolio companies. In
addition, on December 30^th, Robert Coradini departed the Board, following his
recent appointment to the role of Chairman at MELA Sciences, as did Dr.
Timothy Triche, who desires to devote more time to his research and other
commercial interests.

Alnoor Shivji, Chairman of WaferGen, said, "I am delighted to have business
leaders of Bill McKenzie's and Bob Schueren's caliber join our Board. Their
highly relevant life science tools and molecular diagnostic experience will be
tremendously helpful in our efforts to build WaferGen into a leader in the NGS
field. The entire Board is looking forward to working with Bill and Bob on
broadening our strategic thinking and exploring the best opportunities for
growth. I also want to thank Bob Coradini, Scott Davidson, Joe Pesce and Tim
Triche for their outstanding contributions as directors of WaferGen,
especially during the transition period when we were realigning and
re-energizing the Company. I wish them great success in their future
professional endeavors."

About WaferGen Bio-systems, Inc.

WaferGen markets SmartChip TE (Target Enrichment for Next-Generation
Sequencing (NGS)) and SmartChip MyDesign (high-throughput quantitative PCR)
products. SmartChip TE addresses CLIA-certified and clinical research
laboratories' significant unmet needs in sequencing-based testing by providing
uniform coverage of targeted genes, yielding better test specificity and
sensitivity. The superior performance of this new product is based on
WaferGen's proprietary technology that relies on massively parallel singleplex
PCR reactions, where amplification is cleaner and better controlled, thereby
providing more accurate diagnostic test results in the downstream sequencing
step. On the qPCR side, the SmartChip MyDesign System has a powerful value
proposition of content design flexibility, cost-effectiveness, and no need for
pre-amplification.

About IntegenX's NGS Library Prep Business

The Apollo 324™ System is a compact, walk-away automation platform offering
DNA, RNA-Seq, and ChIP-Seq library preparation kits for analysis on popular
NGS platforms from Illumina^®(GA, HiSeq™ and MiSeq™), Life Technologies (Ion
Proton™ and Ion Torrent PGM™), and Roche (GS Junior™, GS FLX™ and GS FLX+).
The intuitive and easy-to-use PrepX^®automation protocols and reagent kits
enable the set-up of a run with as little as 15 minutes of hands-on time. The
user can return in about 90 minutes for sequencer-ready DNA or ChIP-Seq
libraries, or about 5 hours for RNA-seq libraries. The system offers the
flexibility to start a run with a single library without wasting reagents.

Forward Looking Statements

Certain statements made in this press release contain forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities and Exchange Act of 1934, as
amended that are intended to be covered by the "safe harbor" created by those
sections. Forward-looking statements, which are based on certain assumptions
and describe our future plans, strategies and expectations, can generally be
identified by the use of forward-looking terms such as "believe," "expect,"
"may," "will," "should," "could," "seek," "intend," "plan," "estimate,"
"anticipate" or other comparable terms. Forward-looking statements in this
press release may address the following subjects among others: statements
regarding the acquisition of the library preparation for Next-Generation
Sequencing (NGS) business from IntegenX Inc. including possible synergies and
other results of such acquisition, sufficiency of our capital resources,
expected operating losses, expected revenues, expected expenses and our
expectations concerning our business strategy. Forward-looking statements
involve inherent risks and uncertainties which could cause actual results to
differ materially from those in the forward-looking statements, as a result of
various factors including those risks and uncertainties described in the Risk
Factors and in Management's Discussion and Analysis of Financial Condition and
Results of Operations sections of our most recently filed Annual Report on
Form 10-K and our subsequently filed Quarterly Reports on Form 10-Q. We urge
you to consider those risks and uncertainties in evaluating our
forward-looking statements. We caution readers not to place undue reliance
upon any such forward-looking statements, which speak only as of the date
made. Except as otherwise required by the federal securities laws, we disclaim
any obligation or undertaking to publicly release any updates or revisions to
any forward-looking statement contained herein (or elsewhere) to reflect any
change in our expectations with regard thereto or any change in events,
conditions or circumstances on which any such statement is based.

WaferGen Contact:
John Harland
john.harland@wafergen.com
510-780-2395

SOURCE WaferGen Bio-systems, Inc.

Website: http://www.wafergen.com
 
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