Nanogen Inc.

Nanogen Inc. announced that it has entered into agreements with the holders of its 6.25% Senior Convertible Notes due 2010 issued on August 27, 2007 to restructure the indebtedness. In the restructuring, the holders of 6.25% Senior Convertible Notes will exchange an aggregate $12.9 million in principal amount of the Old Notes with the Company's 9.75% Senior Secured Convertible Notes due 2010 with an aggregate principal amount of $15.5 million. The terms of the 9.75% Senior Convertible Notes provide for the mandatory payment of the principal in specified periodic installments as well upon certain asset disposition and financing transactions. The balance of the 6.25% Senior Convertible Notes will remain outstanding, secured by a $7.0 million letter of credit. In connection with the restructuring, Nanogen will grant a collateral agent on behalf of the holders of the 9.75% Senior Convertible Notes a security interest in substantially all of the assets of Nanogen. Upon closing of the restructuring, the conversion price of the remaining 6.25% Senior Convertible Notes and the exercise prices of certain warrants issued in the August 2007 debt financing will be adjusted to an amount equal to $0.6803.