Exhibit 99.1


   Genelabs Technologies Receives $1.25 Million from Affymetrix for Amendment
           to Non-Exclusive License for DNA Amplification Technology

REDWOOD CITY, Calif. - December 30, 2004 - Genelabs Technologies, Inc.
(Nasdaq:GNLB) announced today that it received $1.25 million from Affymetrix
Inc. for an amendment to a non-exclusive license to Genelabs' Linker-Aided DNA
Amplification technology, which is known as LADA. Affymetrix had licensed the
LADA technology from Genelabs in December 2002. The amendment converts the
license to a fully paid up non-exclusive license and eliminates royalties and
fees that were payable under the original agreement.

The license covers U.S. patent number 6,107,023 entitled "DNA Amplification and
Subtraction Techniques" and corresponding international patents. The `023
patent claims a method of amplifying nucleic acids by attaching DNA linkers of
a known sequence to the ends of unknown DNA sequences which are targeted for
amplification. By adding these linkers to targeted DNA molecules, users can
readily design and construct primers complementary to the attached linkers and
amplify the unknown, targeted DNA sequences.

"We are very pleased with this amendment, which immediately monetizes a
previously existing royalty obligation to us. The amended license agreement is
for certain applications of our LADA technology, which Genelabs developed to
facilitate DNA amplification," stated James A.D. Smith, President and Chief
Executive Officer. "We are seeking to realize additional value from our LADA
intellectual property assets from other parties. At the same time, we are
continuing our core focus on drug discovery and development, including Prestara
as an investigational new drug for lupus and our programs to discover new
treatments for hepatitis C viral infections."

Genelabs also updated its financial outlook for year-end 2004. As a result of
the cash received from Affymetrix and a milestone received in November from
GlaxoSmithKline, the company now expects its cash and cash equivalents to be
approximately $2 million higher than the midpoint of the range previously
announced. Genelabs presently expects its December 31, 2004 cash and cash
equivalents to be approximately $26.5 million.

About Genelabs
Genelabs Technologies, Inc. is a biopharmaceutical company pioneering the
discovery and development of novel pharmaceutical products to improve human
health. We are concentrating our clinical development capabilities on
Prestara(TM), an investigational drug for women with systemic lupus
erythematosus. We are concentrating our drug discovery capabilities on novel
antiviral compounds for treatment of hepatitis C virus infections.

NOTE ON FORWARD LOOKING STATEMENTS AND RISKS: This press release contains
forward-looking statements, including statements regarding the ability of the
company to realize additional value from the LADA and related technologies, the
company's progress on drug discovery and development and the company's
financial outlook, including the amount of cash and cash equivalents the
company expects as of December 31, 2004. These forward-looking statements are
based on Genelabs' current expectations and are subject to uncertainties and
risks that could cause actual results to differ materially from the statements
made. Uncertainties and risks include, without limitation, whether future
transactions on the LADA and related technologies are consummated, disputes
regarding the scope or validity of the patents pertaining to the LADA and
related or unrelated technologies; whether the results of Genelabs' or
Genovate's clinical trials and other supporting information will be sufficient
to support the approval of Prestara(TM) by the FDA, the European Agency for
Evaluation of Medicinal Products and other regulatory authorities; delays
regarding the regulatory approval process including the timing and scope of
approval received, if any; the possibility of delay, failure or additional
expense in our research programs; possible problems which may arise in our
collaboration with Gilead including decisions by Gilead to abandon, advance or
delay development of Genelabs' drug candidates; unexpected expenses and
Genelabs' capital requirements and history of operating losses. There can be no
assurance that Genelabs will continue development of Prestara(TM) or that
Genovate will not terminate or delay its clinical trial, or withhold the trial
results from Genelabs. Neither U.S. nor other regulatory authorities have made
a determination as to the safety or efficacy of Prestara(TM) for SLE. Please
see the information appearing in the company's filings with the Securities and
Exchange Commission, including the most recent Quarterly Report on Form 10-Q
and Annual Report on Form 10-K, under the captions "Risk Factors," "Business
Risks" and "Forward-Looking Statements" for more discussion regarding these
uncertainties and risks and others associated with the company's research
programs, early stage of development and other risks which may affect the
company or cause actual results to differ from those included in the
forward-looking statements. Genelabs does not undertake any obligation to
update these forward-looking statements or risks to reflect events or
circumstances after the date of this release.