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                                                                    EXHIBIT 99.1

Wednesday March 21, 8:31 am Eastern Time

Company Press Release

SOURCE: Hyseq, Inc.

                 Hyseq Promotes Ted W. Love as CEO and President
                    George B. Rathmann to remain as Chairman

Sunnyvale, CA, March 21, 2001 /PRNewswire/ -- Hyseq, Inc. (Nasdaq: HYSQ) today
announced that Ted W. Love, M.D. who joined Hyseq as President in January 2001,
has been named Chief Executive Officer and President of Hyseq. George B.
Rathmann, PhD, who has served as the Chairman of Hyseq's Board of Directors
since February 2000 and CEO since May 2000 will continue as Chairman. "The Board
made the decision to have Ted run the company," said Dr. Rathmann. "Ted's proved
to be a strong leader and we have worked well together over the last few months
and we both feel that this is the right time for this transition."

"I am excited about the new challenge and the opportunity to work with my Hyseq
colleagues to maintain the company's commitment to becoming a worldwide leader
in drug discovery. George has set ambitious goals for 2001, and all of us at
Hyseq are encouraged by this precedent and are dedicated to continue progress on
all fronts" said Dr. Love.

Hyseq also announced today that its Board Of Directors decided to draw down the
entire $20 million available under its line of credit agreement with Dr.
Rathmann and pay off the outstanding balance in shares of Hyseq common stock as
provided in the agreement.

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.
Information about Hyseq is available at www.hyseq.com or by phoning (408)
524-8100.