Functional Genetics, Inc. Announces Agreement with Elanco, a Division of Eli Lilly and Company

Gaithersburg, MD, December 09, 2008 --( Functional Genetics, Inc., a biotechnology research and development company, announced today that it has reached a collaborative research, license and commercialization agreement with Elanco, the animal health division of Eli Lilly and Company.

The agreement establishes the framework for Functional Genetics and Elanco to develop and potentially commercialize products using Functional Genetics’ proprietary targets and technologies. Under the agreement, Functional Genetics may receive technology access fees, regulatory milestone payments and royalties from sales.

“We are very pleased to have reached this agreement with Elanco, a leading global animal health company,” said Michael Goldblatt, president and chief executive officer of Functional Genetics. “Functional Genetics and Elanco share the vision to leverage the emerging paradigm of host-oriented therapeutics for new drug development and to utilize our core RHGP technology for target identification in other therapeutic areas. We are excited to work very closely with the Elanco team to achieve these goals.”

About Functional Genetics, Inc.
Functional Genetics, Inc. ( uses innovative science to develop new therapeutics for infectious disease and to improve the quality and efficiency of biologics. FGI applies strategies to medically-relevant and commercially-attractive opportunities. Its products also address widespread and intractable diseases that have persistently inflicted considerable suffering and death.

This news release contains forward-looking information. These statements relate to future events or future performance and reflect management's current expectations and assumptions. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management of Functional Genetics, Inc. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements.
These forward-looking statements are made as of the date hereof and Functional Genetics, Inc. does not assume any obligation to update or revise them to reflect new events or circumstances.

For further information contact:

Functional Genetics, Inc.

Dr. Michael Kinch
(240) 631-6799

Functional Genetics, Inc.
Michael Kinch