Greg Hines President & CEO

Sept 2002 Greg Hines President & CEO

Sept 2002

Forward Looking StatementsForward Looking Statements To the extent any statements made in this presentation

deal with information that is not historical, these are necessarily forward-looking. As such, they are subject to the occurrence of many events outside of the control of Tm Bioscience and are subject to various risk factors that could cause results from Tm Bioscience to differ materially from those expressed in any forward-looking statement. The risk factors include, without limitation, the inherent risk of competition in the marketplace, outcomes in product development programs, regulatory risks related to proprietary rights and market acceptance. Important factors known to Tm Bioscience that could cause such material differences are identified and discussed from time to time in filings by Tm Bioscience.

To the extent any statements made in this presentation deal with information that is not historical, these are necessarily forward-looking. As such, they are subject to the occurrence of many events outside of the control of Tm Bioscience and are subject to various risk factors that could cause results from Tm Bioscience to differ materially from those expressed in any forward-looking statement. The risk factors include, without limitation, the inherent risk of competition in the marketplace, outcomes in product development programs, regulatory risks related to proprietary rights and market acceptance. Important factors known to Tm Bioscience that could cause such material differences are identified and discussed from time to time in filings by Tm Bioscience.

A DNA-based diagnostics company

A DNA-based diagnostics company

Tm BioscienceTm Bioscience

Dual Strategy

1. DNA testing platform State-of-the Art Platform License platform to Luminex, MetriGenix Near-term revenue with high margins

2. DNA tests for potential $16B market Four tests in development First test to be launched Q1-2003

Dual Strategy

1. DNA testing platform State-of-the Art Platform License platform to Luminex, MetriGenix Near-term revenue with high margins

2. DNA tests for potential $16B market Four tests in development First test to be launched Q1-2003

Why DNA-based Diagnostics?Why DNA-based Diagnostics?

DNA DiagnosticsDNA DiagnosticsStrong Business Case

• Thousands of Genetic Markers• Better Prediction of Disease• Strong IP • High Margins• Positive Reimbursement Trends

‘”Genomic Bridge between Old and New medicine’’(David Lewis, Thomas Weisel, 2001)

Strong Business Case

• Thousands of Genetic Markers• Better Prediction of Disease• Strong IP • High Margins• Positive Reimbursement Trends

‘”Genomic Bridge between Old and New medicine’’(David Lewis, Thomas Weisel, 2001)

Genetic Testing RealityGenetic Testing Reality

A Rare Commodity:

•Very few tests performed.•Not yet mainstream healthcare.•Un-tapped Market

Why is DNA-based Diagnostics an Un-tapped Market?

A Rare Commodity:

•Very few tests performed.•Not yet mainstream healthcare.•Un-tapped Market

Why is DNA-based Diagnostics an Un-tapped Market?

Why --- Untapped MarketWhy --- Untapped Market

Technology Gap:

1. Not Accurate

2. Not Affordable

3. Not Fast Enough

Technology Gap:

1. Not Accurate

2. Not Affordable

3. Not Fast Enough

DNA-based DiagnosticsDNA-based DiagnosticsTechnology Gap

1. DNA Sequencing:• expensive• Slow

2. Single gene tests:• slow• Can be expensive

3. Microarrays / Biochips:• Inaccurate

Technology Gap

1. DNA Sequencing:• expensive• Slow

2. Single gene tests:• slow• Can be expensive

3. Microarrays / Biochips:• Inaccurate

Technology SolutionTechnology Solution

‘Tm100’ DNA test platform

–Accuracy > 99.9%

–Fast: 9600 DNA tests / hr.

–Economical: pennies / DNA analysis

‘Tm100’ DNA test platform

–Accuracy > 99.9%

–Fast: 9600 DNA tests / hr.

–Economical: pennies / DNA analysis

Tm100 Universal Microarray

Microarrays

Universal Tag “Operating System”Universal Tag “Operating System”

Computers

Cancer

Toxicology

Coagulation

Universal TagsUniversal Tags

Coagulation CF

Cardiovascular

Arthritis

InfectiousDisease

Diabetes

P450

Cancer

UniversalArray

Tm100 Universal ArrayTm100 Universal Array

ONE Array for ALL applications

“ OPEN SYSTEM ”

ONE Array for ALL applications

“ OPEN SYSTEM ”

Benefits:• Less

development time

• High Accuracy

• Lower cost

Benefits:• Less

development time

• High Accuracy

• Lower cost

Tm Bioscience Business Model

Building Value: A Dual StrategyBuilding Value: A Dual Strategy

Tm100 Universal Array

Operating SystemOut-Licensing

Revenue GeneratingNear TermSustainable

DNA Diagnostic Tests

High GrowthRapid Development Times

Low Technology Risk

Operating System Strategy

Industry Standard O. S.Industry Standard O. S.

1. Luminex xMAP™ 100 • >1000 systems placed• (GSK, Lilly, Mayo,

Abbott, Celera, Lab. Corp of America, Quest)

2. MetriGenix• GeneLogic• Extensive Database

3. Other Platforms

1. Luminex xMAP™ 100 • >1000 systems placed• (GSK, Lilly, Mayo,

Abbott, Celera, Lab. Corp of America, Quest)

2. MetriGenix• GeneLogic• Extensive Database

3. Other Platforms

Operating System RevenueOperating System Revenue

• Tm100• Tm1000• Tm100 4D• Tm1000 4D

Royalty & Milestone

Royalty & Milestone

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

80,000,000

90,000,000

2002 2003 2004 2005 2006

1 M

35 M

Yr. 1 Yr. 5

Products

Analyst Consensus Estimates

Diagnostic Test Strategy

Genetic Testing MarketGenetic Testing Market

2001Research

2005 2010

Affymetrix1 B

2 B 3 B

Research Market 20% CAGR

Genetic Testing MarketGenetic Testing Market

Diagnostic Market 38% CAGR

2001Research

2005Diagnostics

2010

Affymetrix Orchid

5 B

8 B

Genetic Testing MarketGenetic Testing Market

2001Research

2005Diagnostics

2010Theranostics

Affymetrix

16+ BTheranostic Market

Luminex – An Ideal PartnershipLuminex – An Ideal Partnership

Tm Access to: Luminex Instruments,

Beads, our Universal Array

Opportunity: Resale InstrumentsDesign and Market

TestsBroad Based “Fields

of Use”Reduced Cost of

GoodsLow Royalty

Tm Access to: Luminex Instruments,

Beads, our Universal Array

Opportunity: Resale InstrumentsDesign and Market

TestsBroad Based “Fields

of Use”Reduced Cost of

GoodsLow Royalty

Tm Competitive AdvantageTm Competitive Advantage

Low Cost of Goods• Cross Licensing Leverage (Tm100)• Tm1000

Time to Market• Early Access to the Technology• Broad based Fields of Use

Expertise• Know-How on the Platform• Test Development

Low Cost of Goods• Cross Licensing Leverage (Tm100)• Tm1000

Time to Market• Early Access to the Technology• Broad based Fields of Use

Expertise• Know-How on the Platform• Test Development

Low Hanging FruitLow Hanging Fruit1. Coagulation2. Cystic Fibrosis3. Drug Metabolism (P450)4. Melanoma5. Apo E for Alzheimer’s6. Hemoglobinopathies

• Sickle Cell Anemia• Beta-thalassemias

7. Ashkenazi Jewish panel8. Hereditary Hearing Loss9. Congenital Adrenal Hyperplasia

1. Coagulation2. Cystic Fibrosis3. Drug Metabolism (P450)4. Melanoma5. Apo E for Alzheimer’s6. Hemoglobinopathies

• Sickle Cell Anemia• Beta-thalassemias

7. Ashkenazi Jewish panel8. Hereditary Hearing Loss9. Congenital Adrenal Hyperplasia

Diagnostic Test Portfolio

Product PipelineProduct Pipeline

Design – Develop – Manufacture - Launch

Coagulation

P450

Cystic Fibrosis

2003

2003

2003

Melanoma Dr. Hogg U of T

2004

Cystic FibrosisCystic Fibrosis• 1 in 29 North Americans is an unknowing

symptom-free carrier of a defective gene• Current test $400 CDN., 7-10 days• 600,000 tests conducted / yr• Fastest (100% CAGR) Growing Genetic test.• Demand for a new test platform.

“Ob-Gyns will need to incorporate CF screening into their practice” ACOG

• 1 in 29 North Americans is an unknowing symptom-free carrier of a defective gene

• Current test $400 CDN., 7-10 days• 600,000 tests conducted / yr• Fastest (100% CAGR) Growing Genetic test.• Demand for a new test platform.

“Ob-Gyns will need to incorporate CF screening into their practice” ACOG

P450P450• Drug Metabolism

– Toxicity profile– Dosing adjustments

• Impacts key pharmaceuticals(eg. Prozac, Tylenol, Erythromycin, and >80 other

drugs)

• Significant cost driver in healthcare– Hospital admissions– Repeat physician visits

• Currently >100,000 tests/yr in USA

• Drug Metabolism – Toxicity profile– Dosing adjustments

• Impacts key pharmaceuticals(eg. Prozac, Tylenol, Erythromycin, and >80 other

drugs)

• Significant cost driver in healthcare– Hospital admissions– Repeat physician visits

• Currently >100,000 tests/yr in USA

MelanomaMelanoma• An example of the flexibility of the Universal

Array• A collaboration between Dr. Hogg (U of T) and

Tm Bioscience–Dr. Hogg develop the test–Tm retains commercialization rights

• Will detect genetic mutations which predispose patients to Melanoma, the most serious type of skin cancer

• The most common cancer for women aged 25 to 29

• An example of the flexibility of the Universal Array

• A collaboration between Dr. Hogg (U of T) and Tm Bioscience

–Dr. Hogg develop the test–Tm retains commercialization rights

• Will detect genetic mutations which predispose patients to Melanoma, the most serious type of skin cancer

• The most common cancer for women aged 25 to 29

CoagulationCoagulation‘High Risk Patients’

• 17% of population carry blood clotting mutations

• High Risk group are likely to develop blood clots

1. Major Surgery.2. Birth Control Meds.3. Hormone Replacement 4. Pregnancy

“Potential $700 million test market”

‘High Risk Patients’

• 17% of population carry blood clotting mutations

• High Risk group are likely to develop blood clots

1. Major Surgery.2. Birth Control Meds.3. Hormone Replacement 4. Pregnancy

“Potential $700 million test market”

Factor II

MTHFR 677

TFPI

MTHFR 1298

Factor XIII

Factor V

UniversalArray

Coagulation ProductCoagulation Product

Tm test will screen for 6 DNA variations

Assay Specs:

Total Time: 4 hours

Array Time: < 1 hour

Array Cost: ~ $6.00 per test

Alpha Testing

• Tested 132 DNA Samples• Assayed using Tm 6-plex assay• Compared to DNA sequencing (ABI)

Alpha Testing

• Tested 132 DNA Samples• Assayed using Tm 6-plex assay• Compared to DNA sequencing (ABI)

Tm AssayDNA

Sequencing

Correct Calls 180 171Ambiguous

calls 0 9

TOTAL 180 180

Coagulation ProductCoagulation Product

Coagulation ProductCoagulation Product

1. Research Prototype

2. Validation

3. Product Launch

1. Research Prototype

2. Validation

3. Product Launch

Milestones:

CompletedCompleted

CompletedCompleted

Q1 - 2003 Q1 - 2003

Corporate Overview

ManagementManagementGreg Hines - President and CEO

(Founding President of Leo Pharma Inc.- Chairman, Rx&D)

Jim Pelot - CFO(Infospace, VP - NortelNetworks)

Richard Janeczko, Ph.D - Executive VP(CEO - General Synthesis and Diagnostics)

Roman Zastawny, Ph.D. - VP Product Development(Allelix Biopharmaceutical, Eli-Lilly)

Jeremy Bridge-Cook, Ph.D. - VP Business Development(MDS Capital Corp.)

Alan Coley - VP IR and Regulatory(Eli-Lilly, Leo Pharma)

(+Product Dev & Manufacturing Management)

Greg Hines - President and CEO(Founding President of Leo Pharma Inc.- Chairman, Rx&D)

Jim Pelot - CFO(Infospace, VP - NortelNetworks)

Richard Janeczko, Ph.D - Executive VP(CEO - General Synthesis and Diagnostics)

Roman Zastawny, Ph.D. - VP Product Development(Allelix Biopharmaceutical, Eli-Lilly)

Jeremy Bridge-Cook, Ph.D. - VP Business Development(MDS Capital Corp.)

Alan Coley - VP IR and Regulatory(Eli-Lilly, Leo Pharma)

(+Product Dev & Manufacturing Management)

Board of DirectorsBoard of DirectorsRichard Lockie – Chairman

(MDS Capital Corp.)

Neil Reid(MDS-Sciex, MDS Proteomics)

John Frederick(Galaen Holdings Ltd.)

Geoffrey Beattie(The Woodbridge Company Ltd.)

Paul Lucas(GlaxoSmithKline)

Curtis Cusinato – Secretary(Stikeman Elliott)

Gregory Hines – President & CEO

Richard Lockie – Chairman(MDS Capital Corp.)

Neil Reid(MDS-Sciex, MDS Proteomics)

John Frederick(Galaen Holdings Ltd.)

Geoffrey Beattie(The Woodbridge Company Ltd.)

Paul Lucas(GlaxoSmithKline)

Curtis Cusinato – Secretary(Stikeman Elliott)

Gregory Hines – President & CEO

Financial PositionFinancial Position

Shares Outstanding 113.7 M Fully Diluted 116.4 MRecent Price $0.22Market Cap $25 M

Cash reserves $7.5 M12 month revenue (projected) $1.5 MQuarterly burn $1.3 M

Shares Outstanding 113.7 M Fully Diluted 116.4 MRecent Price $0.22Market Cap $25 M

Cash reserves $7.5 M12 month revenue (projected) $1.5 MQuarterly burn $1.3 M

TSX-VEN: TMC

Key MilestonesKey MilestonesTm100 Luminex Q1-

2002Tm 1000 Out license Q2-

20022-D platform Partnership Q2-2002• MetriGenix Launch Q4-2002

• Coagulation test 2003• Drug Metabolism test 2003• Cystic Fibrosis test 2003• Melanoma test 2004

Tm100 Luminex Q1-2002

Tm 1000 Out license Q2-2002

2-D platform Partnership Q2-2002• MetriGenix Launch Q4-2002

• Coagulation test 2003• Drug Metabolism test 2003• Cystic Fibrosis test 2003• Melanoma test 2004

Tm BioscienceTm Bioscience

Dual Strategy

1. DNA testing platform State-of-the Art Platform License platform to Luminex, MetriGenix Near-term revenue with high margins

2. DNA tests for potential $16B market Four tests in development First test to be launched Q1-2003

Dual Strategy

1. DNA testing platform State-of-the Art Platform License platform to Luminex, MetriGenix Near-term revenue with high margins

2. DNA tests for potential $16B market Four tests in development First test to be launched Q1-2003

.www.tmbioscience.comTSX Venture:TMC