EXHIBIT 99.1

ZymoGenetics Appoints James Harper to Board of Directors; Seasoned
Pharmaceutical Executive Offers Marketing and Operations Expertise

    SEATTLE--(BUSINESS WIRE)--July 1, 2004--ZymoGenetics, Inc.
(Nasdaq:ZGEN) has appointed James A. Harper to its Board of Directors
effective July 1, 2004. Mr. Harper has thirty years of global
experience in the pharmaceutical and medical device industries, and
has recently retired from the post of Group Vice President of Global
Marketing and Sales at Eli Lilly and Company. Mr. Harper gained
significant marketing, operations and strategic expertise during his
career. He implemented innovative approaches to product development,
led many successful product launches and negotiated and managed
several business alliances. He also served as President and CEO of
Advanced Cardiovascular Systems, Inc. during its transition from an
early stage company to a highly profitable enterprise.
    "We are extremely proud to have James Harper join our Board," said
Bruce L.A. Carter, Ph.D., President and Chief Executive Officer of
ZymoGenetics. "We expect Mr. Harper's expertise will be a great help
as ZymoGenetics moves product candidates toward market approval; we're
pleased he'll be working with us."
    " I'm delighted to be joining ZymoGenetics' Board of Directors
with such illustrious biotech founders as George Rathmann and Ed
Penhoet," said James Harper. "ZymoGenetics is at an exciting point,
where marketing and product commercialization will be critical to the
Company's success. I'm looking forward to taking part in that effort."
    Mr. Harper currently also serves as the Vice Chair of the Board of
the American Diabetes Association Research Foundation. He was
previously a Flight Officer with the U.S. Navy. He holds a Master of
Business Administration from the Wharton School in Marketing/Finance,
and a Bachelor of Arts degree from Vanderbilt University in Biology.

    About ZymoGenetics

    ZymoGenetics is a biopharmaceutical company focused on the
discovery, development and commercialization of therapeutic proteins
for the prevention or treatment of human diseases. The Company is
developing a diverse pipeline of potential proprietary product
candidates that are moving into and through clinical development.
These span a wide array of clinical opportunities that include
bleeding, autoimmune diseases and cancer. ZymoGenetics intends to
commercialize these product candidates through internal development,
collaborations with partners, and out-licensing of patents from its
extensive patent portfolio. For further information, visit
www.zymogenetics.com.

    This press release contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements are based on the current intent and
expectations of the management of ZymoGenetics. These statements are
not guarantees of future performance and involve risks and
uncertainties that are difficult to predict. ZymoGenetics' actual
results and the timing and outcome of events may differ materially
from those expressed in or implied by the forward-looking statements
because of risks associated with our unproven discovery strategy,
preclinical and clinical development, regulatory oversight,
intellectual property claims and litigation and other risks detailed
in ZymoGenetics' public filings with the Securities and Exchange
Commission, including ZymoGenetics' Annual Report on Form 10-K for the
year ended December 31, 2003. Except as required by law, ZymoGenetics
undertakes no obligation to update any forward-looking or other
statements in this press release, whether as a result of new
information, future events or otherwise.

    CONTACT: ZymoGenetics, Inc.
             Investor Relations
             John Calhoun, MD, MBA
             Director, Corporate Communications & Investor Relations
             206-442-6744
             or
             Media Relations
             Susan W. Specht, MBA
             Corporate Communications Manager
             206-442-6592