Exhibit 99.1


  Genelabs Regains Compliance with Nasdaq Capital Market Listing Requirements

Redwood City, CA -- January 9, 2006 -- Genelabs Technologies, Inc. (Nasdaq:
GNLB; GNLBD) announced today that it has received notification from The Nasdaq
Stock Market that the Company has regained compliance with the $1.00 per share
minimum closing bid price requirement for continued listing on the Nasdaq
Capital Market, pursuant to Nasdaq Marketplace Rule 4310(c)(4). In the letter,
Nasdaq advised the Company that the matter of the Company's compliance with
that requirement is now closed.

About Genelabs
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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 capabilities that can support various research and
development projects. Genelabs is currently concentrating these capabilities on
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, while also developing a late-stage
product for lupus. 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 continued trading
of the company's stock on the Nasdaq Capital Market, compliance with Nasdaq
Capital Market listing requirements and the future of the company's research
and development programs. 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, that Genelabs may not be
able to raise sufficient funds to continue operations; delisting of Genelabs
common stock from the Nasdaq Capital Market; fluctuations in Genelabs' stock
price; 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 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.