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    Pam Lord
    Porter Novelli Life Sciences
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    plord@pnlifesciences.com

FOR IMMEDIATE RELEASE

NEREUS PHARMACEUTICALS ASSIGNED PATENT FOR NEW CLASS OF ANTI-TUMOR COMPOUNDS

SAN DIEGO - May 07, 2002 - Nereus Pharmaceuticals Inc., a pioneer in drug discovery and development from marine microbial sources, today announced it has been awarded U.S. Patent No. 6,358,957. This new patent, entitled "Phenylahistin and The Phenylahistin Analogs, A New Class of Anti-tumor Compounds," relates to phenylahistin and a number of related compounds, their production and their use in the treatment of cancer. This patent includes claims directed to a broad class of compounds and their use in treating breast cancer; Nereus is currently pursuing coverage of the use of these compounds in the treatment of other forms of cancer.

This patent complements Nereus' existing patent on its marine microbial derived anti-tumor compound Halimide, and structurally related compounds, U.S. Patent No. 6,096,146, under which Nereus holds an exclusive license from the University of California. The Halimide and Phenylahistin patents cover structurally-related compounds and provide protection for one of Nereus' lead marine microbial derived compounds. This new patent thus further expands the scope of coverage of chemical derivatives of this lead compound available only to Nereus.

Phenylahistin has been shown to prevent the formation of microtubules, filamentous structures that are required for many cell processes including cell division. Inhibiting the formation of these structures shuts down a tumor's ability to proliferate. Nereus is already conducting pre-clinical in vivo studies with one of its lead compounds.

Some of the most useful chemotherapeutic agents on the market today target microtubules, including Taxol and the various vinca alkaloids. Nereus' lead compound inhibits microtubule formation through a unique interaction with tubulin, the building block of microtubules, suggesting that this class of compounds may represent an important new family of anti-cancer therapeutics. This apparently unique mode of action suggests that Nereus' lead compound could be used with other microtubule inhibitors for additional effect.

"We are pleased to have obtained extensive patent protection over this promising family of anti-tumor compounds," said Kobi Sethna, president and CEO of Nereus Pharmaceuticals. "The breadth of our intellectual property provides a strong foundation for Nereus' anti-cancer drug development program."

About Nereus Pharmaceuticals, Inc.
Nereus Pharmaceuticals is an innovative drug discovery and development company pursuing untapped sources of chemical diversity. With unmatched expertise in marine microbiology and structural elucidation, Nereus is using its integrated platform technologies to identify novel biologically active compounds. The company believes that its marine microbes will be the next great source of drug discovery for the pharmaceutical industry. Nereus aims to develop and optimize drug candidates to treat cancer, infectious diseases, and inflammation. The company is privately held and based in San Diego, California. For more information, visit www.nereuspharm.com.

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