The Woodlands, Texas, June 13, 2006 – Lexicon Genetics Incorporated (Nasdaq: LEXG) announced today that it has received a commitment for up to $75 million in common stock equity financing from Azimuth Opportunity Ltd.  During the 18-month term of this equity financing commitment, Lexicon may sell registered shares of its common stock at its sole discretion to Azimuth Opportunity at a small, pre-negotiated discount to the market price.  Acqua Capital Management Company is an advisor to Azimuth Opportunity.

Lexicon will use net proceeds from any sale of the securities for research, drug discovery and development activities, including the preclinical and clinical development of its lead programs:  LX-6171 for cognitive disorders such as Alzheimer’s disease and LX-1031 for irritable bowel syndrome.  In addition, these funds may be used to accelerate the advancement of Lexicon’s lead internal drug discovery programs in immunology and metabolism and for capital expenditures and other general corporate purposes. 

The shares of common stock are being offered pursuant to an effective registration statement filed with the Securities and Exchange Commission on January 21, 2005.  This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities.  There shall not be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.


About Lexicon Genetics

Lexicon Genetics is a biopharmaceutical company focused on discovering and developing breakthrough treatments for human disease.  Lexicon is systematically discovering the physiological and behavioral functions of genes to identify potential points of therapeutic intervention, or drug targets.  Lexicon makes these discoveries using its proprietary gene knockout technology to model the physiological effects that could be expected from prospective drugs addressing these targets.  For targets that the company believes have high pharmaceutical value, it engages in programs for the discovery and development of small molecule, antibody and protein drugs.  Lexicon has advanced knockout-validated targets into drug discovery programs in six therapeutic areas:  diabetes and obesity, cardiovascular disease, psychiatric and neurological disorders, cancer, immune system disorders and ophthalmic disease.  Lexicon is working both independently and through collaborations and strategic alliances to accelerate the development and commercialization of its discoveries. 

Safe Harbor Statement

This press release contains “forward-looking statements,” including statements about Lexicon’s growth and future operating results, discovery and development of products, strategic alliances 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 Lexicon’s ability to successfully conduct preclinical development of its drug candidates and advance such candidates into clinical development, achieve its operational objectives, obtain patent protection for its discoveries and establish strategic alliances, as well as those relating to manufacturing, the regulatory process, intellectual property rights, and the therapeutic or commercial value of its drug candidates, that may cause Lexicon’s actual results to be materially different from any future results expressed or implied by such forward-looking statements.  Information identifying such important factors is contained under “Factors Affecting Forward-Looking Statements” and “Business – Risk Factors” in Lexicon’s annual report on Form 10-K for the year ended December 31, 2005, as filed with the Securities and Exchange Commission.  Lexicon undertakes no obligation to update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise.