New York and Gainesville, FL (May 16, 2006) – The Juvenile Diabetes Research Foundation has joined in a partnership with AGTC (Applied Genetic Technologies Corp.) and Genzyme Corporation to develop a gene therapy treatment to potentially prevent blindness resulting from diabetic retinopathy.

JDRF, the leading charitable funder of research leading to a cure for type 1 diabetes and its complications, announced today that it will provide milestone-driven payments of up to $1 million to the project over two years, based on the research achieving specific technical milestones. The funding will allow the companies to broaden their joint efforts in ocular diseases to include products to treat this debilitating condition.

Ocular diseases are common complications of diabetes, with diabetic retinopathy the most common and the most serious. Most individuals with type 1 diabetes will ultimately develop symptoms of retinopathy, which is a progressive disease that destroys small blood vessels in the retina, eventually causing vision problems. There are no products currently on the market for treating diabetic retinopathy.

“This partnership provides an excellent opportunity to accelerate the progress of potential treatments for diabetic retinopathy from discovery through development,” said Dr. Richard A. Insel, M.D., Executive Vice President for Research at JDRF. JDRF funds research across a range of scientific areas, including beta cell regeneration, immunology, islet cell replacement, complications, genetics, and technological innovations and therapeutics. The AGTC/Genzyme partnership is a part of the foundation’s innovative Industry Discovery and Development Partnership program, through which JDRF partners with pharmaceutical, biotech, and medical device businesses looking to develop drugs, treatments, technologies, and other therapeutics leading to a cure, reversal, or prevention of type 1 diabetes and its complications. “We are extremely pleased to have this opportunity to work with the JDRF and to help them reach their goal of improving the lives of people with diabetes,” said Sue Washer, President and CEO of AGTC. “This funding demonstrates JDRF’s commitment to research and the clarity of their long-range vision in working with scientists in industry as well as academia.” She added: “We believe that the chronic and progressive nature of diabetic retinopathy, as well as the advantages of delivering the treatment within a very precise location, make it a strong candidate for a gene therapy approach. This research will help establish the foundation of such an approach.”

About JDRF: The mission of JDRF is to find a cure for diabetes and its complications through the support of research. Type 1 diabetes is a disease which strikes children suddenly and requires multiple injections of insulin daily or a continuous infusion of insulin through a pump. Insulin, however, is not a cure for diabetes, nor does it prevent its eventual and devastating complications which may include kidney failure, blindness, heart disease, stroke, and amputation. Since its founding in 1970 by parents of children with type 1 diabetes, JDRF has funded more than $900 million in diabetes research activities around the world, including some $120 million last year.

About AGTC: AGTC is developing novel therapeutics for patients with unmet medical needs utilizing the non-pathogenic adeno-associated virus. AGTC’s first product candidate is a treatment for Alpha One Antitrypsin Deficiency, an inherited form of emphysema; Phase I trials are underway with a potential product launch in early 2009. AGTC’s investors include Interwest Partners (Menlo Park, CA), Intersouth Partners (Durham, NC), MedImmune Ventures (Gaithersburg, MD), and Skyline Ventures (Palo Alto, CA). AGTC is collaborating with Genzyme to develop, manufacture and market a gene therapy product to treat Wet Age-Related Macular Degeneration. The Company is located in Gainesville, Florida in the University of Florida’s Sid Martin Biotechnology Development Incubator.

Genzyme Corporation and AGTC entered into a research partnership in late-2004 to develop novel therapeutics involving gene therapy. The collaboration builds on AGTC’s expertise in Adeno-Associated Virus which includes manufacturing and administering vectors used to deliver genes to patients, and Genzyme’s 15-year experience advancing gene therapy clinical trials across a range of conditions, including cardiovascular disease, oncology, cystic fibrosis, and Parkinson’s disease.

This press release contains forward-looking statements, including the statements regarding the development efforts of the parties with respect to diabetes and the funding obligations of JDRF based on milestones achieved by AGTC and Genzyme.These statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in these forward-looking statements. These risks and uncertainties include, among others, the ability to meet technical milestones, the ability to broaden the scope of the parties’ efforts in ocular diseases resulting in application to diabetes and, with respect to Genzyme, the risks and uncertainties described in reports filed by Genzyme with the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended, including without limitation the information under the heading "Factors Affecting Future Operating Results" in Genzyme’s Quarterly Report on Form 10-Q for the period ended March 31, 2006. Genzyme cautions investors not to place substantial reliance on the forward-looking statements contained in this press release. These statements speak only as of the date of this press release, and Genzyme undertakes no obligation to update or revise the statements.