Taconic Acquires Xenogen Biosciences Subsidiary of Caliper Life Sciences

Expands phenotyping solutions and genetically modified animal portfolio

Hudson, New York - December 14, 2009 - Taconic, one of the largest laboratory rodent providers in the world, announced it has recently acquired Xenogen Biosciences Corporation, a wholly-owned subsidiary of Caliper Life Sciences, Inc. (NASDAQ: CALP). Xenogen Biosciences is a provider of in vivo drug discovery services, including in vivo target and compound evaluation and the design, production, and phenotyping of genetically modified animal models. The acquisition was completed on December 11th.

The move enables Taconic to expand its genetically modified model generation, production and, phenotyping capabilities through access to new models and the addition of a U.S. production site. Pursuant to a separate distribution agreement, Taconic will also cryopreserve, breed and, distribute Caliper's Light Producing Transgenic Animals® (LPTA® models), a unique line of models that use bioluminescent technology to improve oncology, inflammation, metabolic, and endocrine disease research and drug toxicology studies. Imaging studies using these models will be conducted at an AAALAC-accredited vivarium in Cranbury, New Jersey - part of a 50,000-square-foot facility acquired under the agreement.

Taconic also acquires the full line of Xenogen Biosciences in vivo service solutions, including gene targeting, compound profiling, phenotyping, and the ability to perform optical imaging studies using real-time imaging technology under a license from Caliper. Taconic's acquisition of Xenogen Biosciences significantly enhances its ability to provide advanced and highly cost-effective solutions for drug discovery. The addition of Xenogen Biosciences' comprehensive phenotyping platform - which includes over 60 standardized and pharmacologically validated assays within multiple therapeutic areas - will enable Taconic to provide its customers with the most comprehensive custom mouse model generation and characterization solutions available.

Taconic has long recognized the value that genetically modified rat and mouse models bring to the drug discovery process. "The addition of LPTA® models, phenotyping platform and targeted compound profiling technology further strengthens Taconic's position as a leading provider of innovative solutions to improve the ability to derive translational data from drug discovery studies," said Todd Little, President and CEO, Taconic.

"The acquisition is a strong fit for both organizations - technologically, operationally, and philosophically," said Stephen McAndrew, Vice President, Business Development, Xenogen Biosciences. "Each company brings considerable scientific expertise, advanced technology, and world-class facilities to the relationship. And each company is committed to long-term, collaborative partnerships with leading organizations in the pharmaceutical, biotechnology, academic, and government sectors."

"The integration of Xenogen Biosciences' services with Taconic's drug discovery solutions and capabilities creates a robust and highly competitive offering that will assist the biomedical community in reaching its objectives," said David S. Grass, PhD, Divisional Vice President, Technical Operations, Xenogen Biosciences. "In addition, Xenogen Biosciences' compound profiling capabilities will be especially valuable to Taconic customers that seek new disease indications for existing therapeutics, an area of growing importance and interest in the pharmaceutical industry."

About Taconic
Taconic Farms, Inc. was founded in 1952 as a family-owned business in New York's Hudson River Valley. Since then, the company has become one of the largest laboratory rodent providers in the world with a reputation for consistently producing high quality and well-defined rats and mice. Taconic's expertise in the custom design and generation of genetically modified mice, mouse and rat breeding, barrier systems, genetics, and animal health supports researchers focused on drug development using in vivo models. Taconic has six breeding facilities and three service laboratories in the USA and Europe, a staff of over 1,000, and a commitment to technological innovation.

About Caliper Life Sciences
Caliper Life Sciences is a premier provider of cutting-edge technologies enabling researchers in the life sciences industry to create life-saving and enhancing medicines and diagnostic tests more quickly and efficiently. Caliper is aggressively innovating new technology to bridge the gap between in vitro assays and in vivo results, enabling the translation of those results into cures for human disease. Caliper's portfolio of offerings includes state of the art microfluidics, lab automation & liquid handling, optical imaging technologies, and discovery & development outsourcing solutions.