STORAGE

NEW YORK, NY -- Artificial Life Inc. (OTC Bulletin Board: ALIF), a leading provider of intelligent software robot (bot) technology, announced today that it will expand its research and business activities towards deploying and commercializing its artificial life algorithms and bot technology into biotech, genomics and pharmaceutical applications. The Company also announced that it plans to prepare patent applications in this area. The new business activities will concentrate on: -- Bot and agent based data access and data understanding -- Neural network based biological and pharmaceutical data-mining -- Genetic programming -- Simulation of cell assemblies and stem cell development patterns -- Lindenmayer-Systems and Cellular Automata simulations of life-like systems Web-based demonstrations of some Artificial Life algorithms and simulations (such as 1-dimensional and 2-dimensional cellular automata) and L-Systems to simulate plant growth patterns can be found and tested in the products/technology section of the Company's website at: www.artificial- life.com "Our corporate vision has always been to apply knowledge and algorithms derived from the study of living systems such as the human brain and the computerized simulation of life-like systems (from which the Company's name 'Artificial Life' derives) to solve certain real life problems. Artificial Life is able to simulate life-like cell formation and abstract cell growth and behavior patterns of cell formations to a certain degree based on distributed computer systems simulations. This allows us to do fundamental (stem) cell research without raising ethical concerns. In addition, our bot technology can be used to query and analyze huge data files in natural language," explained Eberhard Schoeneburg, CEO and founder of Artificial Life. Mr. Schoeneburg is a former Professor for industrial applications of neural systems and artificial intelligence and author of several books about neural networks and genetic algorithms and evolution theory. "The advantage of our technology is that it is versatile and flexible. It can easily be applied and adapted to all kinds of difficult scientific and economic problems. The intelligence of our algorithms and the natural language understanding capabilities of our agent/bot technology is the basis for this versatility and flexibility. For our algorithms and bots it doesn't really matter whether the underlying data relates to financial markets data, to human genome data or to stem cell research. These areas all represent complex data that has to be analyzed fast, intelligently and in an automated way. We are, therefore, confident that our technology has tremendous potential in the biotech and related industries. In particular, the stem cell and genomics research and the data mining related to the data increasingly pouring out of the current research projects and databases such as the human genome project, provide for a wide variety of applications of our bots and algorithms," said Andreas Buehlmeier, CTO of Artificial Life. "We constantly have to re-assess the revenue potentials of all of our business activities and continue to improve efficiency and reduce overhead. After the re-structuring of the company we are now able to carefully expand again into areas in which our technology can make a difference and may generate major revenues for us. That's why we have decided to take these steps now at a development stage of the market where we may become a significant player. In addition, we are also currently evaluating and investigating partnerships and investments in this promising area," said P. Chin Lim, CFO of For more information visit www.artificial-life.com