Contact:     Matthew M. Loar
             Chief Financial Officer
             650-562-1424


         Genelabs Plans to Appeal Staff Determination Letter from Nasdaq
               Regarding its Listing on the Nasdaq Capital Market

Redwood City, CA -- May 22, 2006 -- Genelabs Technologies, Inc. (Nasdaq: GNLB)
announced that it has received a staff determination letter from the Nasdaq
Stock Market, Inc. (Nasdaq) stating that the company's common stock is subject
to delisting from the Nasdaq Capital Market because the company does not meet
Nasdaq Marketplace Rule 4310(c)(2)(B) which requires the company to have a
minimum of $2,500,000 in shareholder's equity or a market capitalization of
$35,000,000.

         Genelabs has the right to appeal the Nasdaq staff determination to a
Nasdaq Listings Qualification Panel and intends to timely request a hearing. The
request for a hearing will automatically stay the delisting of Genelabs' common
stock until the panel reaches a decision. At the hearing, Genelabs intends to
present a plan for its continued listing on the Nasdaq Capital Market.

About Genelabs
Genelabs Technologies, Inc. is a biopharmaceutical company focused on the
discovery and development of pharmaceutical products to improve human health. We
have built drug discovery and clinical development capabilities that can support
various research and development projects. Genelabs is currently concentrating
its capabilities on developing a late-stage product for lupus, discovering novel
compounds that selectively inhibit replication of the hepatitis C virus and
advancing preclinical development of compounds from this hepatitis C virus drug
discovery program. We believe that these high-risk, potentially high reward
programs focus our research and development expertise in areas where we have the
opportunity to generate either first-in-class or best-in-class products that
will address diseases for which current therapies are inadequate. For more
information, please visit www.genelabs.com.

Note: Genelabs(R) and the Genelabs logo are registered trademarks and
Prestara(TM) is a trademark of Genelabs Technologies, Inc.

NOTE ON FORWARD LOOKING STATEMENTS AND RISKS: This press release contains
forward-looking statements including statements regarding the appeal of the
staff determination letter from Nasdaq, the continued trading of the company's
stock on the Nasdaq Capital Market, and the compliance with Nasdaq Capital
Market listing requirements. 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, delisting of Genelabs
common stock from the Nasdaq Capital Market; fluctuations in Genelabs' stock
price; events which reduce Genelabs' future prospects; potential development
failures or setbacks in our HCV research programs or in our collaboration with
Gilead; progress and announcements by competitors regarding their HCV programs;
regulatory problems or delays regarding Prestara(TM), including an adverse
response from the FDA or a determination to discontinue development of Prestara;
and increases in expenses and Genelabs' capital requirements. Please see the
information appearing in the Genelabs' filings with the Securities and Exchange
Commission, including our most recent Annual Report on Form 10-K, under the
captions "Risk Factors" 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.