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                                                                    EXHIBIT 99.1

Friday February 16, 8:35 am Eastern Time

Company Press Release

SOURCE: Hyseq, Inc.

         Hyseq CFO Announces Resignation to Pursue Other Opportunities

Sunnyvale, CA, February 16, 2001 /PRNewswire/ -- Hyseq, Inc. (Nasdaq: HYSQ)
Hyseq Inc. today announced the resignation of Mark Gitter as Chief Financial
Officer. Mark Gitter has been the CFO of Hyseq since March of 1999, having
previously served as Hyseq's Director of Finance and Controller since July 1998.
Mr. Gitter will continue in his role as CFO with Hyseq until at least March 31,
2001 to help with the transition.

"Hyseq is a fantastic company with a very exciting and promising future. I have
thoroughly enjoyed working with the Hyseq family," said Mark Gitter. "I have
decided that the time has arrived for me to take the next steps in my career and
to pursue a new challenge."

"I would like to thank Mark on behalf of all of us here at Hyseq for his service
and many contributions during his career as Controller and CFO," said Ted W.
Love, Hyseq's President and Chief Operating Officer. "I understand and accept
Mark's decision to seek a new career with new challenges," said Dr. George
Rathmann, Hyseq's Chairman and Chief Executive Officer.

Hyseq is researching and developing biopharmaceutical products from its
collection of novel genes discovered using its proprietary high-throughput
technology. Hyseq has collaborations for discovering gene-based products and for
commercializing its HyChip(TM) biochip. Information about Hyseq is available at
www.hyseq.com or by phoning (408) 524-8100.