SUMMARY OF THE PROXY STATEMENT/ PROSPECTUS

      Lynx is sending this proxy statement/ prospectus to Lynx stockholders and Solexa shareholders. This summary highlights selected information from this proxy statement/ prospectus and does not contain all of the information that is important to you. To better understand the transaction, you should read this entire document carefully, including the acquisition agreement attached as Annex A and incorporated by reference into this proxy statement/ prospectus, the opinion of Seven Hills Partners LLC attached as Annex B and the other documents to which Lynx refers. In addition, Lynx incorporates by reference into this proxy statement/ prospectus important business and financial information about Lynx. You may obtain the information incorporated by reference into this proxy statement/ prospectus without charge by following the instructions in the section entitled “Where You Can Find More Information” on page 181. Lynx has included page references parenthetically to direct you to a more complete description of the topics presented in this summary.

The Companies

      Lynx believes that it is a leader in the development and application of novel genomic analysis solutions. By “novel,” Lynx means next generation technology that will take the engagement of thought leaders before broader commercial acceptance can occur. Companies with established technologies do compete with Lynx for applications suited to their technologies and may compete with Lynx in the development of new technologies similar to those of Lynx in the future. Lynx’s Massively Parallel Sequencing System (MPSS™) consists of proprietary instrumentation and software that are used to analyze millions of DNA molecules in parallel, enabling genome structure characterization at an unprecedented level of resolution. As applied to gene expression analysis, MPSS™ provides comprehensive and quantitative digital information important to modern systems biology research in the pharmaceutical, biotechnology and agricultural industries. Lynx’s business primarily focuses on providing genomics discovery services to its customers using proprietary MPSS^TM, and supplying customers with DNA sequences and other information that result from experiments. Lynx has sold a small number of MPSS instruments to selected customers to date and may increase instrument sales if and when improved versions that are more fully automated are developed. Lynx currently has approximately 75 employees. For more information, visit Lynx’s website at www.lynxgen.com; however, information on Lynx’s website is not a part of this proxy statement/ prospectus.

      Solexa Limited, a private company registered in England and Wales, with its registered office outside Cambridge, U.K., is developing systems for the comprehensive and economical analysis of individual genomes that consist of instruments, consumable items such as reagents, and software. Solexa anticipates that these systems will be used by its future customers in a wide range of applications from basic research through development and implementation and across various industries including, among others, personalized medicine, agriculture, food manufacturing, fermentation and biodefense. Solexa currently has approximately 52 employees. For more information, visit Solexa’s website at www.solexa.com; however, information on Solexa’s website is not a part of this proxy statement/ prospectus.

      Lynx’s MPSS^TM biochemistry determines four DNA bases per cycle utilizing a series of enzymatic reactions with proprietary oligonucleotides, whereas Solexa’s biochemistry determines one DNA base per cycle utilizing DNA polymerase and proprietary nucleotides. Lynx’s MPSS^TM uses one florescence dye, while

Summary of the Transaction (see Page 39)

      Lynx has agreed to make an offer to each Solexa shareholder to acquire all of their shares in the share capital of Solexa. Each Solexa shareholder who accepts the offer will receive Lynx common stock in exchange for their Solexa shares based on an exchange ratio described in more detail in the section entitled “The Transaction Consideration and Exchange of Securities” on page 66. Further terms and conditions of the offer are described in the section entitled “The Transaction” on page 39. If Lynx receives valid acceptances of the offer in respect of not less than 90% in nominal value of the outstanding Solexa ordinary shares, Lynx is entitled to and intends to invoke a compulsory acquisition process under the Companies Act in order to acquire 100% of the Solexa ordinary shares. Lynx has received irrevocable undertakings to accept the offer from certain Solexa directors and shareholders collectively holding 100% of Solexa B preferred shares and 100% of Solexa A ordinary shares. Therefore, the compulsory acquisition procedure will not be relevant to such Solexa shares. See the section entitled “Compulsory Acquisition” on page 166.

      Lynx has also agreed to make an option offer for each outstanding Solexa option either concurrently with the commencement of the offer or as soon as reasonably practicable after, but in no event later than four weeks following the commencement of the offer. In connection with the transaction, all outstanding Solexa options will in the event of a compulsory acquisition procedure become fully vested and exercisable pursuant to the terms of the applicable Solexa plans. For details of the compulsory acquisition, see the section entitled “Compulsory Acquisition” on page 166. Under the option offer, a Solexa optionholder may elect: (x) to exercise his or her Solexa options and exchange the Solexa ordinary shares received upon exercise for shares of Lynx common stock; or (y) to exchange his or her Solexa options for options to acquire shares of Lynx common stock, which options will remain subject to the original vesting schedule and other applicable terms and conditions. In the event that a Solexa optionholder does not elect either to exercise or exchange his or her options, and following the implementation of the compulsory acquisition procedure by Lynx to acquire any remaining Solexa ordinary shares, the options will terminate and cease to be outstanding within one month following notification to Solexa optionholders of such compulsory acquisition procedure. See the section entitled “Option Offer” on page 65.

      If the transaction is completed, Lynx will issue, or otherwise allocate for issuance under options to acquire Lynx common stock, a total of 29.5 million shares of Lynx common stock pursuant to the terms of the offer and the option offer. Following the completion of the transaction, Solexa shareholders will become holders of Lynx common stock, and Solexa will become a wholly-owned subsidiary of Lynx.

Overview of the Acquisition Agreement (see Page 65)

      Lynx’s obligations to first issue shares of Lynx common stock pursuant to the offer, which we refer to as the “first closing,” will not take place until the holders of at least 90% in nominal value of each class of the outstanding Solexa shares shall have accepted the offer.

      The first closing is also subject to the fulfillment, or waiver by Lynx, of several customary closing conditions, including, but not limited to, the following:

      In addition, the first closing is subject to the fulfillment or waiver by Solexa of several customary closing conditions, including, but not limited to, the following:

      The acquisition agreement may be terminated and the offer may be abandoned at any time before the first closing date under several circumstances, including:

      The acquisition agreement contains detailed provisions prohibiting Lynx and Solexa, as well as their respective officers, directors, employees, agents and representatives from taking any action to solicit a competing acquisition proposal. Notwithstanding these restrictions, the acquisition agreement provides that under limited circumstances prior to the first closing date, Lynx or Solexa, upon receipt of an acquisition proposal from a third party, may furnish nonpublic information to that third party and/or enter into

      If either Lynx or Solexa receives an acquisition proposal from a third party that the board of directors or a committee of the board of the receiving party believes in good faith is reasonably capable of being completed and that would result in a more favorable transaction from a financial point of view to such party’s stockholders than the currently proposed transaction, then the board of directors of the receiving party may change its recommendation relating to the transaction. In order for the board of directors of the party receiving the superior acquisition proposal to change its recommendation, (i) such party shall have provided four days’ written notice that it intends to change its recommendation, (ii) such party’s board shall determine in good faith that failure to take such action would result in a breach of the board of directors’ fiduciary obligations to its stockholders, and (iii) such party shall not have breached its “no solicitation” obligations.

      A change in Lynx’s board of directors’ recommendation shall not affect Lynx’s obligation to continue the offer and to convene the Lynx annual meeting. Lynx shall not submit to a vote of its stockholders any transaction contemplated by a competing acquisition proposal, or propose to do so, prior to or at the Lynx annual meeting.

Vote of Stockholders Required (see page 37)

      In order to transact business at the Lynx annual meeting, holders of a majority of the shares of Lynx common stock entitled to vote as of the record date for the Lynx annual meeting must be present, either in person or by proxy. The approval of the issuance of Lynx common stock in the transaction and the resulting change of control of Lynx require the majority of the total votes cast at the Lynx annual meeting, either in person or by proxy. As of the close of business on the record date, directors and executive officers and their affiliates beneficially owned and were entitled to vote 105,770 shares of Lynx common stock, which represented less than 1% of the 7,527,538 shares of Lynx common stock outstanding and entitled to vote on that date.

      The transaction is not subject to a vote by the Solexa shareholders.

Directors and Management of Lynx Following the Transaction (see Page 63)

      The acquisition agreement provides that, on the first closing date, Lynx’s board of directors shall consist of Craig C. Taylor, Genghis Lloyd-Harris, Tom Daniel, Hermann Hauser, Mark Carthy and John West. In addition, one or more other directors who shall be mutually acceptable to Lynx’s board of directors and Solexa’s board of directors shall be appointed to Lynx’s board of directors on the first closing date. The acquisition agreement further provides that Lynx and Solexa will ensure that the composition of Lynx’s board of directors upon such appointment comply with the rules and regulation of the NASDAQ and the SEC. Lynx and Solexa have agreed to appoint Steve Allen to Lynx’s board of directors on the first closing date.

      Effective as of the first closing date, John West will serve as the chief executive officer of Lynx.

Restrictions on Ability to Sell Lynx Common Stock (see Page 59)

      Several Lynx stockholders entered into parent support agreements under which they have agreed not to, directly or indirectly, for a period ending on the earlier to occur of 180 days following the first closing date and the termination of the acquisition agreement, sell or transfer any shares of Lynx common stock held and to be acquired by them during that period. Several Solexa shareholders and optionholders entered into company support agreements under which they have agreed not to, directly or indirectly, for a period ending on the earlier to occur of 180 days following the first closing date and the termination of the acquisition agreement,

      In addition, shares of Lynx common stock received by affiliates of Solexa may only be sold pursuant to Rule 145 of the Securities Act (which restricts the volume of securities that can be sold) or pursuant to a registration statement or exemption from the registration requirements of the Securities Act.

      Lynx has agreed to file a resale registration statement covering the resale of shares of Lynx common stock received by the Solexa shareholders who have entered into the company support agreements and who may be deemed to be affiliates of Solexa in the transaction until such time as less than 25% of Lynx common stock received by these Solexa shareholders is held by them.

Opinion of Lynx’s Financial Advisor (see Page 46)

      In connection with the transaction, Lynx’s financial advisor, Seven Hills Partners LLC, which we refer to as “Seven Hills,” rendered its oral opinion, which was subsequently confirmed in writing, to Lynx’s board of directors that, as of September 27, 2004, the consideration to be paid by Lynx pursuant to the acquisition agreement was fair from a financial point of view to Lynx. The full text of the written opinion of Seven Hills, which sets forth the assumptions made, matters considered and limits of review in connection with the opinion, is attached as Annex B. Seven Hills provided its opinion for the information and assistance of Lynx’s board of directors. The opinion does not constitute a recommendation as to how holders of Lynx common stock should vote with respect to the transaction or any other matter. Seven Hills has consented to the inclusion of and references to its opinion in this proxy statement/prospectus.

      In connection with the financial advisory services rendered by Seven Hills, Lynx has agreed to pay Seven Hills $500,000 plus one percent of the consideration to be paid by Lynx, and financing received by Lynx, in the transaction. While the exact amount of total consideration payable to Seven Hills will be determined upon the completion of the transaction, based upon the closing price of Lynx common share of $3.79 as of December 28, 2004, the total cash consideration payable to Seven Hills would have been approximately $1.6 million. As Lynx has previously paid Seven Hills a $250,000 fairness opinion fee and a $50,000 retainer, the remaining estimated $1.3 million is contingent upon consummation of the transaction. Lynx has also agreed to indemnify Seven Hills and related persons against specified liabilities relating to or arising out of services performed by Seven Hills.

Interests of Directors, Officers and Affiliates (see Page 60)

      In considering the recommendation of Lynx’s board of directors that Lynx stockholders vote in favor of the issuance of Lynx common stock and the resulting change of control of Lynx, Lynx stockholders should be aware that some Lynx executive officers and directors have interests in the transaction that may be different from, or in addition to, their interests as stockholders of Lynx. These interests include that Lynx will maintain an extension of coverage of Lynx’s director and officer insurance with effect from the first closing date, for the benefit of those Lynx directors and officers who are covered by such policies at the first closing date, with respect to matters occurring prior to the first closing date for six years after the first closing date. Lynx’s board of directors was aware of these interests and considered them, among other matters, in making its recommendation.

      In considering the recommendation of Solexa’s board of directors to Solexa’s shareholders that they accept the offer, Solexa shareholders should be aware that some executive officers and directors of Solexa have

      Solexa’s board of directors was aware of these interests and considered them, among other matters, in making its recommendation to Solexa’s shareholders that they accept the offer.

Material U.S. Federal Income Tax Consequences of the Transaction (see Page 54)

      It is expected that the transaction will qualify as a “reorganization” within the meaning of Section 368(a) of the Internal Revenue Code of 1986, as amended, which we refer to as the “Code,” for federal income tax purposes. The offer is conditioned upon the receipt by Lynx from its U.S. legal counsel, Cooley Godward LLP, which we refer to as “Cooley Godward,” and the receipt by Solexa from its U.S. legal counsel, Heller Ehrman White & McAuliffe LLP, which we refer to as “Heller Ehrman,” opinions that transaction will qualify as a “reorganization.” Assuming such qualification, a U.S. holder of Solexa shares will not recognize any gain or loss in the exchange of Solexa shares for Lynx shares except with respect to fractional shares. A non-U.S. holder of Solexa shares generally will not recognize gain or loss upon the receipt of Lynx shares in

Material U.K. Tax Consequences of the Transaction (see Page 177)

      The transaction is structured as a “reorganization” within the meaning of Section 135 of the Taxation of Chargeable Gains Act 1992. A U.K. resident holder of Solexa shares will not be treated as having disposed of its shares to the extent that it receives shares of Lynx common stock in exchange and will therefore not recognize a gain on the disposal. HOLDERS OF SOLEXA SHARES ARE URGED TO CONSULT THEIR OWN TAX ADVISORS WITH RESPECT TO THE U.K. TAX CONSEQUENCES OF ACCEPTING THE OFFER. For a more complete description of the U.K. tax consequences of the transaction, see section entitled “Material U.K. Tax Consequences of the Transaction” on page 177.

Risk Factors (see Page 23)

      In evaluating the acquisition agreement, the principal terms of the transaction or the issuance of Lynx common stock in the transaction, you should carefully read this proxy statement/ prospectus and especially consider the factors discussed in the section entitled “Risk Factors” beginning on page 23 as well as the risk factors listed in the annual report on Form 10-K, as amended, of Lynx for the year ended December 31, 2003, and the quarterly report on Form 10-Q of Lynx for the quarter ended September 30, 2004.

Listing of Lynx Common Stock on the NASDAQ SmallCap Market (see Page 62)

      It is a condition to the offer that the shares of Lynx common stock to be issued in the transaction be approved for listing on the NASDAQ SmallCap Market, subject to official notice of issuance.

      The NASDAQ staff has indicated to Lynx that it will view the transaction as constituting a “Reverse Merger” under the NASDAQ Marketplace Rule 4330(f). As a result, Lynx will be required to satisfy the requirements for initial inclusion on the NASDAQ Stock Market, including a $4.00 per share minimum bid price for the 90 trading days preceding the completion of the transaction, in order for Lynx common stock to remain listed on the NASDAQ SmallCap Market following the completion of transaction. Lynx does not currently satisfy the minimum bid price requirement and intends to effect a reverse split of the outstanding shares of Lynx common stock in order to effect a plan to meet these requirements. No assurance can be given that a listing will be obtained on the NASDAQ. If Lynx does not meet the initial listing requirements for Lynx common stock to be listed on the NASDAQ SmallCap Market, the shares of Lynx common stock may be delisted from the NASDAQ SmallCap Market. See the section entitled “Risk Factors — Risks Relating to the Combined Group Following the Transaction”on page 26.

Market Price Information (see Page 21)

      Lynx common stock is listed on the NASDAQ SmallCap Market under the trading symbol “LYNX.” On September 27, 2004, the last full trading day prior to the public announcement of the acquisition agreement, Lynx common stock closed at $1.86 per share. On January 19, 2005, Lynx common stock closed at $3.38 per share.

      Currently there is no public trading market for Solexa shares.

Regulatory Approval (see page 58)

      The transaction is subject to antitrust laws. For the reasons described in greater detail in the section entitled “Regulatory Matters; Hart-Scott-Rodino Act and Antitrust” on page 58, the transaction between the parties is not presently believed to be subject to the reporting and waiting provisions of the Hart-Scott-Rodino Antitrust Improvements Act of 1976, or the HSR Act. Thus, no filings have been made or are presently contemplated with the U.S. Department of Justice, or the “DOJ,” and the U.S. Federal Trade Commission, or the “FTC.” Nevertheless, either the DOJ or the FTC as well as a foreign regulatory agency or government, state or private person, may challenge the transaction at any time before or after completion.

Appraisal Rights (see page 105)

      Under the Delaware General Corporation Law, which we refer to as the “DGCL,” the stockholders of Lynx do not have appraisal rights in connection with the issuance of Lynx common stock in the transaction and the resulting change of control of Lynx. Solexa shareholders generally do not have appraisal rights under English law.

Comparison of Stockholder Rights (see Page 93)

      The rights of Solexa shareholders as stockholders of Lynx after the transaction will be governed by the DGCL, Lynx’s certificate of incorporation and Lynx’s bylaws. Those rights differ from the rights of Solexa shareholders under English law, Solexa’s articles of association and the shareholders’ agreement between Solexa and its shareholders. See the section entitled “Comparison of Rights of Holders of Lynx Common Stock and Solexa Shares” on page 93.

Reciprocal Support Agreements (see Page 76)

      Solexa has entered into parent support agreements with several executive officers, directors and stockholders of Lynx, which we refer to as the “parent support agreements.” Under the parent support agreements, these Lynx executive officers, directors and stockholders have agreed to vote the Lynx shares of common stock they hold in favor of the approval of the issuance of common stock in connection with the transaction and the resulting change of control of Lynx, as well as each other proposal to be acted on by Lynx’s stockholders at the Lynx annual meeting in accordance with the acquisition agreement or any other matters that could reasonably be expected to facilitate the transaction. As of January 19, 2005, these Lynx executive officers, directors and stockholders beneficially owned approximately 3% of the outstanding shares of Lynx common stock.

      Lynx has entered into company support agreements and irrevocable undertakings with a number of shareholders of Solexa. We refer to such company support agreements as the “company support agreements,” and together with such irrevocable undertakings, as the “company support documents.” Under the company support documents, each such Solexa shareholder has agreed to accept or procure acceptance of the offer and/or make an election under the option offer in accordance with their respective terms within 10 business days of the offer being made by Lynx. Such Solexa shareholders have also agreed to vote their Solexa shares in favor of the delivery of a selling notice to invoke a compulsory transfer to Lynx of the remaining share capital of Solexa, if necessary, and the approval of any other matters that could reasonably be expected to facilitate the transaction. As of January 19, 2005, these Solexa shareholders owned 100% of the outstanding Solexa B preferred shares, 100% of the outstanding Solexa A ordinary shares and approximately 82.5% of the outstanding Solexa ordinary shares.

      In addition, the institutional Solexa shareholders who entered into the company support agreements have agreed not to convert any Solexa B preferred shares and Solexa A ordinary shares they hold into Solexa ordinary shares and have waived their pre-emption and rights of first refusal under Solexa’s articles of association with respect to the transaction. The irrevocable undertaking by Nick McCooke, the former chief executive officer and a shareholder of Solexa, provides that, if acceptances in respect of 100% of the then outstanding share capital of Solexa have been received by Lynx on or before the first closing date, Mr. McCooke shall be entitled to withdraw consent in respect of one Solexa ordinary share to enable Lynx to

      We refer to the parent support agreements and the company support documents collectively as the “support agreements.”

Summary of the Proposed Financing (see Page 125)

      On October 26, 2004, Lynx’s board of directors unanimously found it to be advisable and in the best interests of Lynx to seek stockholder approval for (i) the sale, issuance or potential issuance, in connection with one or more capital raising transactions raising an aggregate amount of not more than $10,000,000 (excluding amounts receivable by Lynx upon exercise of any warrants issued pursuant to any such capital raising transaction), of up to 10,000,000 shares of Lynx common stock (including shares issuable upon conversion or exercise of convertible debt or warrants convertible into or exercisable for Lynx common stock) to investors who will likely include affiliates of certain individuals who will be appointed to Lynx’s board of directors on the first closing date, upon such terms as Lynx’s board of directors, or a committee thereof, may deem to be in the best interests of Lynx and its stockholders, and at an effective price of not less than 80% of the last closing price of the Lynx common stock as reported on the NASDAQ SmallCap Market prior to the pricing of the securities to be issued pursuant to any such capital raising transaction and (ii) the change of control, if any, of Lynx which may occur as a result of such sale, issuance or potential issuance. Any such capital raising transaction would occur, if at all, prior to the first closing date, but no later than 3 months after Lynx receives the Lynx stockholders’ approval of the proposed financing. There can be no assurance that Lynx will complete the proposed financing. Whether or not Lynx does complete the proposed financing, Lynx may raise additional capital in a transaction or series of transactions following the first closing date. Any such additional transaction or series of transactions may require the further approval of the Lynx stockholders.

SELECTED SUMMARY HISTORICAL AND PRO FORMA COMBINED FINANCIAL DATA

      The following tables present summary historical financial data, summary unaudited pro forma combined financial data, comparative per share data as well as market price, exchange rate and dividend data of Lynx and Solexa.

Selected Summary Historical Financial Data of Lynx

      The following table sets forth selected summary historical financial data of Lynx. The information presented below was derived from Lynx’s audited financial statements as of December 31, 1999, 2000, 2001, 2002 and 2003 and for the years then ended and the unaudited financial statements as of September 30, 2004 and for the nine months ended September 30, 2003 and 2004. This information is only a summary. You should read it together with Lynx’s historical financial statements and accompanying notes incorporated by reference into this proxy statement/ prospectus. Historical results are not necessarily indicative of future results.

Selected Summary Historical Financial Data of Solexa

      The following table sets forth summary historical financial data of Solexa. The information presented below as of December 31, 1999, 2000 and 2001, and for the years ended December 31, 1999 and 2000 is derived from unaudited financial statements of Solexa. The information as of December 31, 2002 and 2003 and for each of the three years in the period ended December 31, 2003 is derived from Solexa’s audited financial statements included elsewhere in this proxy statement/ prospectus. The information as of September 30, 2004 and for the nine months ended September 30, 2003 and 2004 is derived from Solexa’s unaudited financial statements included elsewhere in this proxy statement/ prospectus. In the opinion of Solexa’s management, these unaudited financial statements have been prepared on a basis consistent with that of Solexa’s audited financial statements and reflect all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation. This information is only a summary. You should read it together with Solexa’s historical financial statements and accompanying notes included in this proxy statement/ prospectus. Historical results are not necessarily indicative of future results.

      On October 18, 2004, Solexa completed a subsequent issue and sale of additional B preferred shares, raising approximately $0.9 million. The above selected summary historical financial data of Solexa do not reflect the issuance of B preferred shares in October 2004 and related changes to cash balances and shareholders’ equity.

Selected Unaudited Pro Forma Condensed Combined

      The following selected unaudited pro forma condensed combined financial data was prepared using the purchase method of accounting. For accounting purposes, Solexa is considered to be acquiring Lynx in this transaction. The unaudited pro forma condensed combined statements of operations data combines the historical statements of operations of Lynx and Solexa for the year ended December 31, 2003 and for the nine months ended September 30, 2004, giving effect to the proposed transaction as if it had occurred on January 1, 2003. The unaudited pro forma condensed combined balance sheet data combines the historical balance sheets of Lynx and Solexa as of September 30, 2004, giving effect to the proposed transaction as if it had occurred as of September 30, 2004.

      The selected unaudited pro forma condensed combined financial data is based on estimates and assumptions that are preliminary. The data is presented for informational purposes only and is not intended to represent or be indicative of the consolidated results of operations or financial condition of Lynx that would have been reported had the proposed transaction been completed as of the dates presented, and should not be taken as representative of future consolidated results of operations or financial condition of Lynx. Please also read the section in this proxy statement/ prospectus entitled “Forward Looking Statements” on page 33 for more information on the statements made in this section.

      This selected unaudited pro forma condensed combined financial data should be read in conjunction with the summary selected historical financial data, the unaudited pro forma condensed combined financial statements and accompanying notes contained elsewhere in this proxy statement/ prospectus, Solexa’s historical financial statements and accompanying notes contained elsewhere in this proxy statement/ prospectus and Lynx’s historical consolidated financial statements and accompanying notes incorporated by reference into this proxy statement/ prospectus. See the section entitled “Where You Can Find More Information” on page 181 of this proxy statement/ prospectus.

Comparative Per Share Data

      The following table presents historical per share data regarding the net loss and book value of each of Lynx and Solexa and unaudited combined pro forma per share data after giving effect to the transaction as a purchase of Lynx by Solexa. The pro forma net loss per share information gives effect to the proposed transaction for the year ended December 31, 2003 and for the nine months ended September 30, 2004 as if it had occurred on January 1, 2003. The pro forma book value per share information gives effect to the proposed transaction as if it had occurred on December 31, 2003 and September 30, 2004, respectively. The pro forma combined shares consist of 27,647,200 new Lynx common shares to be issued to Solexa shareholders (excluding the 1,852,800 Lynx share equivalents to be issued to Solexa optionholders) added to the shares used in computation of Lynx’s historical basic and diluted net loss per share or historical book value for the applicable period. The Solexa equivalent shares assume 12,960,362 as-converted Solexa ordinary shares (as a result of converting the Solexa B preferred shares and Solexa A ordinary shares into Solexa ordinary shares) and an exchange ratio of 2.1332 new Lynx common shares to be issued in the transaction for each Solexa as-converted ordinary share. Neither Lynx nor Solexa has paid any cash dividends during the periods presented.

      The data has been derived from and should be read in conjunction with the summary selected historical financial data, Solexa’s historical financial statements and accompanying notes contained elsewhere in this proxy statement/ prospectus, the unaudited pro forma condensed combined financial statements contained elsewhere in this proxy statement/ prospectus and Lynx’s historical consolidated financial statements and the accompanying notes incorporated by reference into this proxy statement/ prospectus. The unaudited pro forma per share data is presented for informational purposes only and is not intended to represent or be indicative of the consolidated results of operations or financial condition of Lynx that would have been reported had the transaction been completed as of the dates presented, and should not be taken as representative of future consolidated results of operations or financial condition of the combined company.

      The Solexa equivalent pro forma per share data is calculated by multiplying the pro forma combined per share amounts by the as-converted exchange ratio of 2.1332 shares of Lynx common stock for each share in Solexa’s share capital.

Market Price, Exchange Rate and Dividend Data

Market Price Data

      Lynx common stock is quoted on the NASDAQ SmallCap Market and traded under the symbol “LYNX.” The table below sets forth for the periods indicated the high and low bid prices per share of Lynx common stock. For current price information with respect to Lynx common stock, you are urged to consult publicly available sources. No assurance can be given as to future prices of, or markets for, shares of Lynx common stock.