EXHIBIT 99.1

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

Redwood City, CA -- September 26, 2005 -- Genelabs Technologies, Inc. (Nasdaq:
GNLB) announced that it has received a staff determination letter from the
Nasdaq Stock Market (Nasdaq) stating that the company's common stock is
subject to delisting from the Nasdaq National Market because the closing bid
price of the company's common stock is not in compliance with the $1.00
minimum closing bid price requirement as set forth in Marketplace Rule
4450(a)(5). Such letters are standard procedure when a company does not meet
the minimum closing bid price requirement. Genelabs has the right to appeal
the Nasdaq staff determination to a Nasdaq Listings Qualification Panel and
intends to timely request a hearing, which 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 National Market. There can be no assurance that the Panel will grant
Genelabs' request for continued listing on the Nasdaq National Market. If the
Panel determines not to continue to list the company's common stock on the
Nasdaq National Market, Genelabs intends to request the Panel to permit the
company to transfer its common stock to the Nasdaq SmallCap Market. Genelabs
currently complies with the requirements for initial listing on the Nasdaq
SmallCap Market, except for the $1.00 minimum closing bid price. Under the
rules of the Nasdaq SmallCap Market, Genelabs would have an additional grace
period through March 16, 2006 to comply with the $1.00 minimum closing bid
price requirement on the Nasdaq SmallCap Market, thereby providing the company
with sufficient time to effect a reverse stock split that was approved by the
company's shareholders on June 14, 2005. The company cannot provide assurance
that in the future it will continue to meet the initial listing requirements
for the Nasdaq SmallCap 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 National Market, the intention to file an application to
the Nasdaq SmallCap Market, and the compliance with Nasdaq SmallCap 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 National Market; fluctuations in Genelabs' stock
price; events which reduce Genelabs' future prospects, thus negating any
advantage that may be anticipated from a reverse stock split; 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; increases in expenses and Genelabs' capital requirements and history
of operating losses. 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.