NASDAQ: STGNNASDAQ: STGN

A contender in life science research products and diagnostics

Joseph Sorge, M.D.Chairman and CEO

Steve MartinVice President and CFO

Thomas Weisel PartnersHealthcare Conference

September 8, 2006

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Forward Looking Statement Forward Looking Statement DisclosureDisclosure

Certain statements in this news release that are not historical fact constitute "forward-looking Certain statements in this news release that are not historical fact constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Stockholders and other readers are cautioned not to place undue reliance on these forward-looking Stockholders and other readers are cautioned not to place undue reliance on these forward-looking statements. Stratagene generally identifies forward-looking statements by using words like statements. Stratagene generally identifies forward-looking statements by using words like "believe," "intend," "target," "expect," "estimate," "may," "should," "plan," "project," "contemplate," "believe," "intend," "target," "expect," "estimate," "may," "should," "plan," "project," "contemplate," "anticipate," "predict" or similar expressions. You can also identify forward-looking statements by "anticipate," "predict" or similar expressions. You can also identify forward-looking statements by discussions of strategies, plans or intentions. Such forward-looking statements involve known and discussions of strategies, plans or intentions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results of Stratagene to unknown risks, uncertainties and other factors, which may cause the actual results of Stratagene to be materially different from historical results or from any results expressed or implied by such be materially different from historical results or from any results expressed or implied by such forward-looking statements. Among the important factors that could cause actual results to differ forward-looking statements. Among the important factors that could cause actual results to differ materially from those contained in or implied by the forward-looking statements are risks materially from those contained in or implied by the forward-looking statements are risks associated with the company's inability to sufficiently anticipate market needs and develop associated with the company's inability to sufficiently anticipate market needs and develop products and product enhancements that achieve market acceptance, the company's ability to products and product enhancements that achieve market acceptance, the company's ability to compete effectively in the diagnostics and life sciences research markets, variability of the compete effectively in the diagnostics and life sciences research markets, variability of the company's quarterly revenues and operating results, the failure of the company to retain key company's quarterly revenues and operating results, the failure of the company to retain key employees, the company's ability to obtain additional debt or equity financing, the possibility of employees, the company's ability to obtain additional debt or equity financing, the possibility of declining sales due in part to a reduction in research and development budgets or government declining sales due in part to a reduction in research and development budgets or government funding, the company's ongoing ability to protect its own intellectual property rights and to avoid funding, the company's ongoing ability to protect its own intellectual property rights and to avoid violating the intellectual property rights of third parties, extended manufacturing difficulties and violating the intellectual property rights of third parties, extended manufacturing difficulties and currency fluctuations. For more information about these and other factors that could cause actual currency fluctuations. For more information about these and other factors that could cause actual results to differ materially from those contained in or implied by the forward-looking statements results to differ materially from those contained in or implied by the forward-looking statements please see "Factors that May Affect Future Results" included in Stratagene's Annual Report on please see "Factors that May Affect Future Results" included in Stratagene's Annual Report on Form 10-K for the year ended December 31, 2005 and in other reports filed by Stratagene from Form 10-K for the year ended December 31, 2005 and in other reports filed by Stratagene from time to time with the Securities and Exchange Commission, including Quarterly Reports on Form time to time with the Securities and Exchange Commission, including Quarterly Reports on Form 10-Q. 10-Q.

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Stratagene is…Stratagene is…

a growing developer, a growing developer, manufacturer, and manufacturer, and marketer of marketer of advanced life advanced life science research science research and diagnostic and diagnostic products for products for academic, biopharm, academic, biopharm, government and government and clinical laboratoriesclinical laboratories

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Investment ConsiderationsInvestment ConsiderationsProfitable core business Profitable core business – Specialized life sciences tools leadershipSpecialized life sciences tools leadership– Diagnostic product and technology expertiseDiagnostic product and technology expertise

High margin product growth opportunitiesHigh margin product growth opportunities– Molecular diagnostics – instruments and chemistriesMolecular diagnostics – instruments and chemistries– Cutting edge DNA and RNA detection technologyCutting edge DNA and RNA detection technology– Nucleic acid purification instrument and consumablesNucleic acid purification instrument and consumables– Software – high density array analysisSoftware – high density array analysis

Strong R&D pipeline and history of innovationStrong R&D pipeline and history of innovationStrategic relationships with life science and diagnostic industry Strategic relationships with life science and diagnostic industry leadersleaders– Bayer HealthcareBayer Healthcare– Focus Diagnostics / Quest DiagnosticsFocus Diagnostics / Quest Diagnostics– Merck / Rosetta Inpharmatics Merck / Rosetta Inpharmatics – Beckman CoulterBeckman Coulter

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20+ Years of Success20+ Years of Success• Stratagene founded in 1984Stratagene founded in 1984• History of positive cash flow and profitsHistory of positive cash flow and profits• Started with gene cloning, then nucleic acid Started with gene cloning, then nucleic acid

amplification, now nucleic acid function and amplification, now nucleic acid function and detectiondetection

• Expanded world wideExpanded world wide• Currently 460 employees worldwideCurrently 460 employees worldwide

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Life Science ProductsLife Science Products

Proprietary biological reagents Proprietary biological reagents and instruments used by and instruments used by researchers to:researchers to:

– identify genes and proteins to identify genes and proteins to study their impact on cell study their impact on cell regulationregulation

– determine the molecular determine the molecular mechanisms of health and mechanisms of health and diseasedisease

– search for new drug search for new drug therapiestherapies

– develop diagnostic testsdevelop diagnostic tests

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Recent Product LaunchesRecent Product LaunchesStrataClone ™ PCR Cloning KitStrataClone ™ PCR Cloning KitSideStep™ lysis and stabilization products SideStep™ lysis and stabilization products StrataScript® QPCR cDNA Synthesis Kit StrataScript® QPCR cDNA Synthesis Kit miRACLE ™ miRNA Purification KitmiRACLE ™ miRNA Purification KitAbsolutely RNA® FFPE Kit Absolutely RNA® FFPE Kit PfuUltraPfuUltra™ II Fusion DNA Polymerase™ II Fusion DNA PolymeraseHerculase® II Fusion DNA PolymeraseHerculase® II Fusion DNA PolymerasePathwayArchitect™ SoftwarePathwayArchitect™ Software– Strand PartnershipStrand Partnership

ArrayAssist® Expression, Exon SoftwareArrayAssist® Expression, Exon Software– Strand PartnershipStrand Partnership

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More than 1,000 different allergens More quantitative than “scratch” test Physicians can test for allergies using a

single sample of the patient’s blood Sales to ENT specialists for office testing

•ALLERGY TESTINGALLERGY TESTING

Clinical Diagnostics ProductsClinical Diagnostics Products

•AUTOIMMUNE TESTINGAUTOIMMUNE TESTING

37 autoimmune products to test for disorders 37 autoimmune products to test for disorders such as rheumatoid arthritis and systemic such as rheumatoid arthritis and systemic lupuslupus

Replaces subjective, labor intensive testReplaces subjective, labor intensive test Eliminates the use of expensive manual Eliminates the use of expensive manual

immunofluorescent microscopyimmunofluorescent microscopy

•URINALYSIS – KovaURINALYSIS – Kova®® & Glasstic brand names & Glasstic brand names

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Clinical Diagnostics Growth Clinical Diagnostics Growth OpportunityOpportunity

Diagnostic leaders integrating Stratagene Diagnostic leaders integrating Stratagene autoimmune tests to their clinical workstations – 7,000 autoimmune tests to their clinical workstations – 7,000 unit installed baseunit installed base

Bayer Diagnostics agreementBayer Diagnostics agreement Beckman Coulter agreementBeckman Coulter agreement 2006/2007 FDA approvals expected2006/2007 FDA approvals expected

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Product Mix OverviewProduct Mix OverviewStratagene consolidatedStratagene consolidated

QPCR Systems 22% 7%High Fidelity PCR Enzymes 15% 60%Urinalysis Standards/Slides 11% 40%Allergy 11% 4%Mutagenesis 9% 95%Competent Cells 8% 25%

Top 6 Product Lines 76%

* Based on management estimates

Product Group % of Product Sales Est. Market Share*

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Strengths/StrategyStrengths/Strategy

Strong focus on product Strong focus on product innovationinnovation

Approximately 50% of product Approximately 50% of product revenues protected by patentsrevenues protected by patents

Over 30% of revenues from Over 30% of revenues from products launched since 2002products launched since 2002

17 significant new products 17 significant new products launched in the last quarter of launched in the last quarter of 20052005

Continuous Continuous InnovationInnovation

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Extensive distribution network in over 30 countriesExtensive distribution network in over 30 countries

Transitioned to direct sales in Japan in 2004Transitioned to direct sales in Japan in 2004

Customers Customers – 60% North America60% North America

– 25% Europe25% Europe

– 15% ROW15% ROW

Customer Mix – 50% Academic and Government and 50% Customer Mix – 50% Academic and Government and 50% CommercialCommercial

Sales & Marketing NetworkSales & Marketing Network

Strengths/StrategyStrengths/Strategy

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Molecular Diagnostics OpportunityMolecular Diagnostics OpportunityStratagene’s QPCR TechnologyStratagene’s QPCR Technology

Quantitative PCR is the most widely used technology Quantitative PCR is the most widely used technology for molecular diagnosticsfor molecular diagnosticsRoche is market leader with TaqMan® technology in Roche is market leader with TaqMan® technology in $1.5 B growing marketplace$1.5 B growing marketplaceCompanies have paid Roche significant upfront fees Companies have paid Roche significant upfront fees and high royalty rates for license to TaqMan and high royalty rates for license to TaqMan technologytechnologyKey Roche patents expired in March 2005 in U.S. and Key Roche patents expired in March 2005 in U.S. and in March 2006 overseasin March 2006 overseasStratagene has a new solution: FullVelocity™ Stratagene has a new solution: FullVelocity™ technology – faster, more sensitive, cost competitivetechnology – faster, more sensitive, cost competitive

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F QQprimer probe

= polymerase with 5’ exo function

TaqMan®® ReactionRoche

fluorescent light

DNA or RNA TargetDNA or RNA Target

TaqManTaqMan®®

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primer F

QQ

fluorescent light5’ endo

FullVelocityTMTM ReactionStratagene

DNA or RNA TargetDNA or RNA Target

U.S. Patent Nos. 6,350,580; 6,528,254; 6,548,250; 6,589,743; 6,893,819U.S. Patent Nos. 6,350,580; 6,528,254; 6,548,250; 6,589,743; 6,893,819

FullVelocityFullVelocityTM TM TechnologyTechnology

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Measuring Measuring Signal Signal

Strength Over Strength Over 1.5 hours1.5 hours

FullVelocity FullVelocity vs. TaqManvs. TaqMan

HIV Assay HIV Assay with 5,000 with 5,000

copies of HIV copies of HIV RNARNA

FullVelocityTM

Ct=28.3

Brilliant Taq Ct=30.0

LeadingCompetitorTaqManCt=35.5

HIV RNA Detection – 1.5 HoursHIV RNA Detection – 1.5 Hours

Sig

nal

Str

eng

thS

ign

al S

tren

gth

TimeTime

Ultra Fast DNA AmplificationUltra Fast DNA AmplificationGUS gene from 5 ng cDNAGUS gene from 5 ng cDNA

FV IIFV II

FV IFV I

TaqmanTaqman

17 seconds per cycle17 seconds per cycle Signal appearsSignal appears

With FV II in 8 minutesWith FV II in 8 minutesWith FV I – no signalWith FV I – no signalWith Taqman no signalWith Taqman no signal

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Molecular Diagnostics StrategyMolecular Diagnostics Strategy

Reagents and AssaysReagents and AssaysLicense and sell FullVelocity™ technology directly to reference and License and sell FullVelocity™ technology directly to reference and university clinical laboratories university clinical laboratories – Co-developed 4-plex infectious disease detection kits with Focus Co-developed 4-plex infectious disease detection kits with Focus

Diagnostics, additional kits under developmentDiagnostics, additional kits under developmentEstablish relationships with marketing partners for hospital laboratoriesEstablish relationships with marketing partners for hospital laboratoriesAcquire target IP in newer areas to develop proprietary testsAcquire target IP in newer areas to develop proprietary tests– Cancer (relationship with the Sidney Kimmel Cancer Center)Cancer (relationship with the Sidney Kimmel Cancer Center)– Biomarkers / companion diagnostics Biomarkers / companion diagnostics – PharmacogenomicsPharmacogenomics

InstrumentsInstrumentsSigned Development and Supply Agreement with Bayer Diagnostics for Signed Development and Supply Agreement with Bayer Diagnostics for Mx3005P™. Currently customizing system for clinical needs.Mx3005P™. Currently customizing system for clinical needs.Co-developing nucleic acid purification instrument with Merck/RosettaCo-developing nucleic acid purification instrument with Merck/Rosetta

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Mx3000P™& Mx3005P™ QPCR Instruments

•small• fast•economical•approximately 2,000 sold in research market

•Bayer Healthcare partnership

Real-Time PCR InstrumentReal-Time PCR Instrument

2020

Q2 2006 Financial ReviewQ2 2006 Financial ReviewQ2 2006 Revenues of $23.4 millionQ2 2006 Revenues of $23.4 million

Product gross margin rate of 64.6%Product gross margin rate of 64.6%

Q2 2006 EPS of $0.05, excluding a $0.22 litigation Q2 2006 EPS of $0.05, excluding a $0.22 litigation chargecharge

Total cash of $33.5 million at June 30, 2006 Total cash of $33.5 million at June 30, 2006

Total debt of $3.8 million in the form of an industrial Total debt of $3.8 million in the form of an industrial revenue bond with interest at 3.3% due 2022revenue bond with interest at 3.3% due 2022

$9 million line of credit available, no borrowings $9 million line of credit available, no borrowings outstandingoutstanding

Total assets of $121 millionTotal assets of $121 million

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Full year 2006 GuidanceFull year 2006 GuidanceFocus on Consistent ProfitabilityFocus on Consistent Profitability

Revenue to be between $94 million and $98 million Revenue to be between $94 million and $98 million Gross margin to range from 63% to 65% of total Gross margin to range from 63% to 65% of total revenuesrevenuesResearch and development expenses to range from Research and development expenses to range from 13% to 15% of revenues13% to 15% of revenuesGAAP earnings per share to range from $0.0 to $0.03 GAAP earnings per share to range from $0.0 to $0.03 per share after $0.22 per share litigation chargeper share after $0.22 per share litigation charge2006 GAAP earnings include stock option comp charges 2006 GAAP earnings include stock option comp charges from implementation of FAS 123R of $1.0 million ($0.03 from implementation of FAS 123R of $1.0 million ($0.03 per diluted share)per diluted share)Fully diluted share count of 22.4 millionFully diluted share count of 22.4 million

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Investment OpportunityInvestment Opportunity

Profitable core businesses in life sciences Profitable core businesses in life sciences and clinical diagnosticsand clinical diagnosticsHistory of innovationHistory of innovationGrowth opportunities in 2007 and beyondGrowth opportunities in 2007 and beyond– Partnership with Bayer Diagnostics for Mx3005P™Partnership with Bayer Diagnostics for Mx3005P™– Partnership with Focus Diagnostics for diagnostic tests Partnership with Focus Diagnostics for diagnostic tests

and reagentsand reagents– Co-development with Merck in Nucleic Acid PurificationCo-development with Merck in Nucleic Acid Purification– Bayer and Beckman-Coulter clinical diagnostics Bayer and Beckman-Coulter clinical diagnostics

agreementsagreements– Entry into molecular diagnostics marketEntry into molecular diagnostics market

NASDAQ: STGNNASDAQ: STGNwww.stratagene.comwww.stratagene.com

NASDAQ: STGNNASDAQ: STGNwww.stratagene.comwww.stratagene.com

A contender in life science research products and diagnostics