Tripos, Inc. had entered into a definitive agreement to sell substantially all of the assets of its discovery informatics business to Vector Capital, a San Francisco-based private equity boutique specializing in buyouts, spinouts and recapitalizations of established technology businesses.

This asset sale, expected to close in the first quarter of 2007, is an initial step in the liquidation of Tripos. Liquidating distributions, in an amount to be determined, are expected to begin approximately six months after the closing of this transaction. Tripos' preliminary estimate is that there would be between $6 million to $12 million available for distribution to common stockholders assuming completion of the sale of its Discovery Informatics business to Vector, sale of its Discovery Research business, completion of certain other transactions described below, and satisfaction of all liabilities at amounts currently estimated.

Tripos also announced earlier this week that it is in advanced discussions to sell its UK based Discovery Research business and related assets. Tripos will make prompt public disclosure of any definitive agreements for the sale of part or all of its Discovery Research business.

"This transaction will allow the Discovery Informatics business to continue to serve its computational chemistry and enterprise research IT customers as a private company with greater access to growth capital," said Dr John P. McAlister, president and CEO of Tripos. "Furthermore, it will enable the Discovery Informatics business to strengthen its core SYBYL business and continue to develop innovative scientific software products and services to meet the evolving needs of the pharmaceutical and biotechnology industries."

Commenting on these announcements, Dr McAlister added, "In January 2006, we announced that Tripos had engaged investment bankers to assist the board in evaluating a range of strategic alternatives for the company, including mergers and acquisitions, becoming a private company, and separating its informatics and research businesses. Since then, we have undertaken an intensive search for the best alternative for our stockholders, and have engaged in extensive and in some cases advanced negotiations with several parties, including strategic investors and financial investors in the United States, Asia and Europe.

Tripos combines leading-edge technology and innovative science to deliver consistently superior chemistry-research products and services for the biotechnology, pharmaceutical and other life science industries.