EXHIBIT 99.1

	NEWS RELEASE
	Media Contact:	Debra Charlesworth Caroline Pecquet	(650) 225-2742 (650) 467-7078
	Investor Contact:	Kathee Littrell	(650) 225-1034
	http://www.gene.com

GENENTECH ANNOUNCES SECOND QUARTER 2005 RESULTS

-- Total Product Sales Grow 39 Percent; Non-GAAP Net Income Increases 63 Percent --

-- Nine FDA Filings Anticipated --

SOUTH SAN FRANCISCO, Calif. -- July 11, 2005 -- Genentech, Inc. (NYSE: DNA) today announced financial results for the second quarter of 2005. Key results for the second quarter of 2005 included:

• Total product sales of $1,274.1 million, a 39 percent increase over product sales of $913.4 million in the second quarter of 2004

• Operating revenues of $1,526.8 million, a 35 percent increase over operating revenues of $1,128.2 million in the second quarter of 2004

• Non-GAAP earnings per share increase of 58 percent to $0.30 per share from $0.19 per share in the second quarter of 2004; GAAP earnings per share increase of 69 percent to $0.27 per share from $0.16 per share in the second quarter of 2004

• Non-GAAP net income increase of 63 percent to $328.6 million from $201.8 million in the second quarter of 2004; GAAP net income increase of 73 percent to $296.2 million from $170.8 million in the second quarter of 2004

"Our recent clinical and financial successes are built on decades of rigorous efforts to continuously follow the science and focus on the patient. We have demonstrated continued strong growth this past quarter, achieving significant increases in product sales, revenues and earnings

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per share," said Arthur D. Levinson, Ph.D., Genentech's chairman and chief executive officer. "Moving forward, we remain focused on strong execution that will allow us to pursue breakthrough therapies and the achievement of our Horizon 2010 goals."

"We are currently expecting year-over-year non-GAAP earnings per share for 2005 to increase by greater than 35 percent, relative to 2004," said David Ebersman, senior vice president and chief financial officer.

Note:  Genentech's non-GAAP net income and non-GAAP earnings per share exclude recurring charges related to the 1999 Roche redemption of Genentech's stock and litigation-related special items. The differences in non-GAAP and GAAP numbers are reconciled in the tables below and on www.gene.com. All share and per share amounts reflect the May 2004 two-for-one split of Genentech common stock.

Product Sales

For the three months ended June 30, 2005:

• Total product sales, comprised of U.S. product sales and product sales to collaborators (primarily ex-U.S. sales), increased 39 percent to $1,274.1 million from $913.4 million in the second quarter of 2004.

• U.S. product sales increased 39 percent to $1,215.9 million from U.S. product sales of $872.5 million in the second quarter of 2004.

• U.S. sales of Avastin™ (bevacizumab) increased 85 percent to $245.7 million, from U.S. sales of $133.0 million in the second quarter of 2004. Sequential quarter-over-quarter Avastin sales increased 21 percent from first quarter 2005 U.S. sales of $202.9 million.

• U.S. sales of Tarceva™ (erlotinib) were $70.2 million. Sequential quarter-over-quarter Tarceva sales increased 47 percent from first quarter 2005 U.S. sales of $47.6 million. Tarceva was launched in the United States in November 2004.

• U.S. sales of Rituxan® (Rituximab) increased 15 percent to $450.3 million, from U.S. sales of $390.0 million in the second quarter of 2004.

• U.S. sales of Herceptin® (Trastuzumab) increased 29 percent to $152.4 million, from U.S. sales of $118.0 million in the second quarter of 2004.

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• U.S. sales of Xolair® (Omalizumab) increased 84 percent to $80.4 million, from U.S. sales of $43.6 million in the second quarter of 2004.

• U.S. sales of RAPTIVA® (efalizumab) increased 59 percent to $21.3 million, from U.S. sales of $13.4 million in the second quarter of 2004.

• U.S. sales of legacy products, including growth hormone, cardiovascular products and Pulmozyme® (dornase alfa, recombinant) Inhalation Solution, increased 12 percent to $195.6 million, from U.S. sales of $174.5 million in the second quarter of 2004.

• Product sales to collaborators increased 42 percent to $58.2 million, from sales of $40.9 million in the second quarter of 2004. Product sales to collaborators primarily consisted of shipments of Rituxan and Pulmozyme for the ex-U.S. markets and Enbrel for the U.S. market.

Royalties and Contract Revenues

• Royalties increased 32 percent to $200.3 million from $151.9 million in the second quarter of 2004.

• Contract revenues decreased 17 percent to $52.4 million from $62.9 million in the second quarter of 2004.

Total Costs and Expenses

• Cost of sales increased 44 percent to $269.5 million from $186.7 million in the second quarter of 2004, primarily due to higher product sales and charges of $41.0 million to cancel certain manufacturing obligations. Cost of sales as a percentage of product sales was 21 percent compared to 20 percent in the second quarter of 2004.

• Research and development (R&D) expenses increased 31 percent to $278.1 million from $212.9 million in the second quarter of 2004. R&D expenses as a percentage of operating revenues were 18 percent compared to 19 percent in the second quarter of 2004.

• Marketing, general and administrative (MG&A) expenses increased 29 percent to $356.6 million from $276.7 million in the second quarter of 2004. MG&A expenses as a percentage of operating revenues decreased to 23 percent compared to 25 percent in the second quarter of 2004.

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• Collaboration profit-sharing expenses in the second quarter of 2005 increased 37 percent to $198.8 million from $145.2 million in the second quarter of 2004. The growth in these expenses is attributable to higher Rituxan, Tarceva, and Xolair sales.

• Genentech's income tax rate for the second quarter of 2005 decreased from the prior year and the prior quarter primarily as the result of a one-time benefit from recognizing additional R&D tax credits. The one-time benefit is based upon new regulations recently issued by the U.S. Department of Treasury that are favorable for Genentech.

Clinical Development

"I am tremendously pleased that our efforts to discover and develop potential therapies may change clinical practice and improve the lives of patients. We are actively working with the FDA to prioritize the nine potential filings relating to our significant Phase III trial results, while we continue to develop more than 30 projects in the pipeline primarily in our oncology and immunology focus areas," said Susan D. Hellmann, M.D., M.P.H., president of Product Development. "We currently anticipate filing Herceptin for adjuvant breast cancer in the first quarter of 2006 and expect to provide updates on filing timelines for Avastin data upon the completion of preliminary discussions with the FDA."

Genentech is preparing for potential U.S. Food and Drug Administration (FDA) filings for Avastin for second-line metastatic colorectal cancer; Avastin for first-line non-squamous non-small cell lung cancer; Avastin for metastatic breast cancer; Herceptin for adjuvant breast cancer; Herceptin in combination with Taxotere for first-line metastatic breast cancer; Lucentis in wet age-related macular degeneration; Rituxan for front-line aggressive non-Hodgkins lymphoma (NHL); Rituxan for front-line indolent/maintenance¹ NHL; and Rituxan for rheumatoid arthritis in inadequate anti-TNF responders.

Genentech announced that in the second quarter of 2005 it began enrolling patients in several Phase III studies, including Rituxan in systemic lupus erythematosus, Avastin in prostate cancer, and combination Avastin and Tarceva in second-line non-small cell lung cancer. It also began enrollment in a Phase I study of a small molecule hedgehog antagonist in basal cell carcinoma in collaboration with Curis.

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The company also announced that it removed from the development pipeline Omnitarg as a single agent in breast and lung cancer. It continues to enroll the Phase II study of Omnitarg in combination with chemotherapy for ovarian cancer.

Genentech and Boehringer Ingelheim announced that they stopped early the ASSENT 4 PCI trial, a randomized, open-label Phase IIIb/IV clinical study of the single-bolus thrombolytic TNKase™/Metalyse® (tenecteplase) in combination with a planned percutaneous coronary intervention (PCI, also known as primary angioplasty/stenting) versus PCI alone in patients with large acute myocardial infarctions. The trial was stopped after an analysis of the 30-day data showed that the mortality rates in those treated with tenecteplase plus PCI were higher than in the PCI alone arm. Additional results from the study will be presented at the annual meeting of the European Society of Cardiology in Stockholm, Sweden in September 2005.

Executive Appointment

Patrick Y. Yang, Ph.D., senior vice president of Product Operations, will become a member of Genentech's Executive Committee.

Yang will continue to report to Levinson and will continue to be responsible for Manufacturing, Facilities, Engineering, Process Development and Supply Chain Management functions. He joined Genentech in 2003 as vice president, South San Francisco Manufacturing and Engineering.

Webcast:

Genentech will be offering a live webcast of a discussion by Genentech management of the earnings and other business results on Monday, July 11, 2005, at 2:15 p.m. Pacific Time (PT). The live webcast may be accessed on Genentech's website at http://www.gene.com. This webcast will be available via the website until 5:00 p.m. PT on July 25, 2005. An audio replay of the webcast will be available beginning at 5:15 p.m. PT on July 11, 2005 through 5:15 p.m. PT on July 18, 2005. Access numbers for this replay are: 1-800-642-1687 (U.S./Canada) and 1-706-645-9291 (international); conference ID number is 7086252.

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About Genentech:

Genentech is a leading biotechnology company that discovers, develops, manufactures and commercializes biotherapeutics for significant unmet medical needs. A considerable number of the currently approved biotechnology products originated from or are based on Genentech science. Genentech manufactures and commercializes multiple biotechnology products directly in the United States and licenses several additional products to other companies. The company has headquarters in South San Francisco, California and is traded on the New York Stock Exchange under the symbol DNA. For additional information about the company, please visit http://www.gene.com.

For information on Genentech's latest business and product development events please refer to http://www.gene.com/gene/news/press-releases/index.jsp.

This press release contains forward-looking statements regarding nine potential FDA filings, the FDA filing timeframe for Herceptin in adjuvant breast cancer, achievement of Horizon 2010 goals and expected growth in non-GAAP EPS for 2005, and actual results could differ materially. Among other things, potential FDA filings, including the Herceptin filing timeframe, and our Horizon 2010 goals of adding programs into research and clinical development could be affected by product safety, efficacy or manufacturing issues, additional time requirements to achieve study endpoints or for data analysis or filing preparation, need for additional clinical studies, and FDA actions or delays; our Horizon 2010 goal of bringing potential new products or indications to market could be affected by all of the foregoing and failure to receive FDA approval; our Horizon 2010 goals of becoming number one in U.S. oncology sales and building a leading immunology business could be affected by all of the foregoing and by competition, pricing, reimbursement, the ability to supply product, product withdrawals, new product approvals and launches and achieving sales revenue consistent with internal forecasts; and non-GAAP EPS growth, including our Horizon 2010 goal of non-GAAP EPS growth, could be affected by all of the foregoing and by unanticipated expenses such as litigation or legal settlement expenses or equity securities write-downs, cost of sales, R&D expenses, fluctuations in royalties and contract revenues, and

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fluctuations in tax and interest rates. Genentech disclaims, and does not undertake, any obligation to update or revise any forward-looking statements in this press release.

# # #

1  One area of concern for the FDA is the use of the term "maintenance." Genentech will be working toward a nomenclature that the FDA feels better describes this approach to treating patients with Rituxan.

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GENENTECH, INC. CONSOLIDATED STATEMENTS OF INCOME DATA (in thousands, except per share amounts) (unaudited)
		Three Months Ended June 30,
		2005							2004
		GAAP(1)		Difference			Non-GAAP(2)		GAAP(1)		Difference			Non-GAAP(2)
Revenues:
Product sales		$	1,274,115				$	1,274,115	$	913,366				$	913,366
Royalties			200,321					200,321		151,860					151,860
Contract revenue			52,443					52,443		62,852					62,852
Total operating revenues			1,526,879					1,526,879		1,128,078					1,128,078
Costs and expenses:
Cost of sales			269,481					269,481		186,683					186,683
Research and development			278,124					278,124		212,886					212,886
Marketing, general and administrative			356,638					356,638		276,654					276,654
Collaboration profit sharing			198,798					198,798		145,221					145,221
Recurring charges related to redemption			34,482	$	(34,482)	(3)		-		38,209	$	(38,209)	(3)		-
Special items:  litigation-related			19,527		(19,527)	(4)		-		13,458		(13,458)	(4)		-
Total costs and expenses			1,157,050		(54,009)			1,103,041		873,111		(51,667)			821,444
Operating margin			369,829		54,009			423,838		254,967		51,667			306,634
Other income, net(5)			31,502		-			31,502		15,444		-			15,444
Income before taxes			401,331		54,009			455,340		270,411		51,667			322,078
Income tax provision			105,165		21,603			126,768		99,640		20,666			120,306
Net income		$	296,166	$	32,406		$	328,572	$	170,771	$	31,001		$	201,772
Earnings per share:
	Basic	$	0.28	$	0.03		$	0.31	$	0.16	$	0.03		$	0.19
	Diluted	$	0.27	$	0.03		$	0.30	$	0.16	$	0.03		$	0.19
Weighted average shares used to compute    earnings per share:
Basic			1,057,564					1,057,564		1,060,619					1,060,619
Diluted			1,083,841					1,083,841		1,087,087					1,087,087

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(1)	Reflects operating results in accordance with U.S. generally accepted accounting principles (or GAAP).
(2)	Non-GAAP amounts exclude litigation-related special items and recurring charges related to the 1999 redemption of Genentech's Special Common Stock, net of tax effects.
(3)	Represents the amortization of other intangible assets related to the 1999 redemption of Genentech's Special Common Stock.
(4)	Represents accrued interest and bond costs in Q2 2005 and 2004 related to the City of Hope trial judgment, and amounts paid in Q2 2005 related to a litigation settlement.
(5)	"Other income, net" includes interest income and interest expense. In addition, "other income, net" includes realized gains from the sale of certain biotechnology equity securities and write-downs for other-than-temporary impairments in the fair value of certain biotechnology debt and equity securities. For further detail, refer to our web site at www.gene.com.
	2005 Reconciliation of GAAP and Non-GAAP EPS Our 2005 GAAP EPS is not estimable at this time. The 2005 GAAP EPS would include recurring charges related to the 1999 redemption of our stock by Roche, which are estimated to be approximately $123 million on a pretax basis in 2005. In addition, the 2005 GAAP EPS would include litigation-related special charges for accrued interest and associated bond costs on the City of Hope judgment, which are currently estimated to be approximately $14 million per quarter on a pretax basis in 2005 until resolved. The 2005 non-GAAP EPS estimate does not include the redemption related recurring charges and the litigation-related special items or any other potential special charges related to existing or future litigation or its resolution, or changes in accounting principles, all of which may be significant.

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GENENTECH, INC. CONSOLIDATED STATEMENTS OF INCOME DATA (in thousands, except per share amounts) (unaudited)
		Six Months Ended June 30,
		2005							2004
		GAAP(1)		Difference			Non-GAAP(2)		GAAP(1)		Difference			Non-GAAP(2)
Revenues:
Product sales		$	2,460,117				$	2,460,117	$	1,677,066				$	1,677,066
Royalties			432,236					432,236		305,957					305,957
Contract revenue			96,104					96,104		120,190					120,190
Total operating revenues			2,988,457					2,988,457		2,103,213					2,103,213
Costs and expenses:
Cost of sales			520,522					520,522		301,163					301,163
Research and development			521,364					521,364		403,231					403,231
Marketing, general and administrative			671,852					671,852		523,968					523,968
Collaboration profit sharing			375,075					375,075		271,652					271,652
Recurring charges related to redemption			68,964	$	(68,964)	(3)		-		76,418	$	(76,418)	(3)		-
Special items:  litigation-related			30,784		(30,784)	(4)		-		26,857		(26,857)	(4)		-
Total costs and expenses			2,188,561		(99,748)			2,088,813		1,603,289		(103,275)			1,500,014
Operating margin			799,896		99,748			899,644		499,924		103,275			603,199
Other income, net(5)			47,899		-			47,899		37,765		-			37,765
Income before taxes			847,795		99,748			947,543		537,689		103,275			640,964
Income tax provision			267,455		39,899			307,354		190,331		41,310			231,641
Net income		$	580,340	$	59,849		$	640,189	$	347,358	$	61,965		$	409,323
Earnings per share:
	Basic	$	0.55	$	0.06		$	0.61	$	0.33	$	0.06		$	0.39
	Diluted	$	0.54	$	0.05		$	0.59	$	0.32	$	0.06		$	0.38
Weighted average shares used to compute    earnings per share:
Basic			1,052,228					1,052,228		1,057,955					1,057,955
Diluted			1,076,519					1,076,519		1,084,618					1,084,618

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(1)	Reflects operating results in accordance with U.S. generally accepted accounting principles (or GAAP).
(2)	Non-GAAP amounts exclude litigation-related special items and recurring charges related to the 1999 redemption of Genentech's Special Common Stock, net of tax effects.
(3)	Represents the amortization of other intangible assets related to the 1999 redemption of Genentech's Special Common Stock.
(4)	Represents accrued interest and bond costs in 2005 and 2004 related to the City of Hope trial judgment, and net amounts paid in 2005 related to other litigation settlements.
(5)	"Other income, net" includes interest income and interest expense. In addition, "other income, net" includes realized gains from the sale of certain biotechnology equity securities and write-downs for other-than-temporary impairments in the fair value of certain biotechnology debt and equity securities. For further detail, refer to our web site at www.gene.com.
	2005 Reconciliation of GAAP and Non-GAAP EPS Our 2005 GAAP EPS is not estimable at this time. The 2005 GAAP EPS would include recurring charges related to the 1999 redemption of our stock by Roche, which are estimated to be approximately $123 million on a pretax basis in 2005. In addition, the 2005 GAAP EPS would include litigation-related special charges for accrued interest and associated bond costs on the City of Hope judgment, which are currently estimated to be approximately $14 million per quarter on a pretax basis in 2005 until resolved. The 2005 non-GAAP EPS estimate does not include the redemption related recurring charges and the litigation-related special items or any other potential special charges related to existing or future litigation or its resolution, or changes in accounting principles, all of which may be significant.

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GENENTECH, INC. CONSOLIDATED BALANCE SHEET DATA (in thousands) (unaudited)
	June 30,
	2005		2004
Selected balance sheet data:
Cash, cash equivalents and short-term investments	$	2,010,541	$	1,619,134
Accounts receivable - product sales, net		509,971		445,076
Accounts receivable - royalties, net		238,714		189,513
Accounts receivable - other, net		165,133		136,593
Inventories		600,863		527,649
Long-term marketable debt and equity securities		901,052		1,414,663
Property, plant and equipment, net		2,792,106		1,740,423
Goodwill		1,315,019		1,315,019
Other intangible assets		603,956		710,644
Long-term assets		998,673		817,906
Total assets		10,546,610		9,083,774
Total current liabilities		1,141,735		862,201
Total liabilities		2,566,605		2,198,740
Total stockholders' equity		7,980,005		6,885,034
Year-to-date:
Capital expenditures	$	729,810	$	196,633
Total GAAP(1) depreciation and amortization expense		181,454		178,520
Less:  redemption related amortization expense(3)		(68,964)		(76,418)
Non-GAAP(2) depreciation and amortization expense	$	112,490	$	102,102

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(1)	In accordance with U.S. generally accepted accounting principles (or GAAP).
(2)	Non-GAAP amounts exclude amortization of other intangible assets related to the 1999 redemption of Genentech's Special Common Stock.
(3)	Represents the amortization of other intangible assets related to the 1999 redemption of Genentech's Special Common Stock.

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GENENTECH, INC. NET PRODUCT SALES DETAIL (in thousands) (unaudited)
	Three Months Ended June 30,
	2005		2004
Net US Sales:
Rituxan	$	450,348	$	390,005
Herceptin		152,427		118,001
Avastin		245,685		133,004
Growth Hormone		97,116		88,000
Thrombolytics		51,635		50,001
Pulmozyme		46,906		36,509
Xolair		80,370		43,623
Raptiva		21,271		13,415
Tarceva		70,186		-
Total US Sales	$	1,215,944	$	872,558
Net Sales to Collaborators:
Rituxan	$	32,013	$	34,661
Herceptin		(1,767)		(319)
Avastin		3,557		-
Growth Hormone		799		413
Thrombolytics		1,663		1,543
Pulmozyme		7,886		4,457
Xolair		1,722		53
Raptiva		3,629		-
Enbrel		8,669		-
Total Sales to Collaborators	$	58,171	$	40,808
Total Net Product Sales	$	1,274,115	$	913,366
	Six Months Ended June 30,
	2005		2004
Net US Sales:
Rituxan	$	890,898	$	751,813
Herceptin		282,057		226,696
Avastin		448,540		171,131
Growth Hormone		186,984		171,965
Thrombolytics		102,202		94,266
Pulmozyme		90,889		74,524
Xolair		145,633		73,476
Raptiva		37,916		19,706
Tarceva		117,771		-
Total US Sales	$	2,302,890	$	1,583,577
Net Sales to Collaborators:
Rituxan	$	65,063	$	73,483
Herceptin		9,121		4,449
Avastin		15,189		-
Growth Hormone		3,019		1,918
Thrombolytics		4,666		3,502
Pulmozyme		15,649		9,874
Xolair		5,056		263
Raptiva		11,099		-
Enbrel		28,365		-
Total Sales to Collaborators	$	157,227	$	93,489
Total Net Product Sales	$	2,460,117	$	1,677,066

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