AGY THERAPEUTICS RAISES TOTAL OF $9 MILLION IN EXTENSION OF C ROUND FINANCING

SOUTH SAN FRANCISCO, Calif. – April 7, 2004 – AGY Therapeutics Inc., a privately-held biopharmaceutical company, announced today that the company has raised $9 million through an extension of its Series C round of financing. Existing Series C investors, including Bear Stearns Health Innoventures, HBM Partners, Alta Partners, GIMV, Novartis Venture Fund, NIF, Jafco, Cheng Xin, Lotus and GE Capital, participated in this financing round. The company has now raised a total of $68 million since its inception in 1998.

"As we have made progress in developing treatments to address the serious unmet medical need of central nervous system disorders, we have established a strong syndicate of top-tier investors," said Cynthia Ladd, AGY's president and chief executive officer. "This financing enables us to advance our candidate stroke recovery drug toward the clinic, as well as proceed with further evaluation of other promising preclinical compounds in the areas of stroke, cognition and brain cancer."

Through the application of AGY Therapeutics' proprietary functional genomics-based platform and its assay, high throughput screening and pharmacology capabilities, the company has developed a product candidate in its stroke recovery program. This agent represents a possible new approach and a significant market opportunity. By stimulating recovery of function of surviving tissue, the compound promotes compensation of damaged areas by unaffected regions.

In addition, the company's cognition/schizophrenia program has compounds for novel targets in preclinical study, and its neuro-oncology program has yielded several promising drug targets for glioblastoma, an aggressive and deadly form of brain cancer.

About ImAGYne
AGY Therapeutics' proprietary ImAGYne™ platform defines the intra- and extra-cellular signaling pathways that underlie the pathological progression of central nervous system (CNS) diseases, so novel, high-quality targets can be carefully selected and functionally validated with the most valuable targets advanced into drug discovery and development. To date, AGY Therapeutics has identified and characterized a number of promising drug targets to treat or diagnose CNS diseases and has identified potential lead compounds.

About AGY Therapeutics
AGY Therapeutics, Inc., a privately held biotechnology company, is dedicated to discovering and developing novel treatments for CNS diseases, including stroke, depression, cognitive and mental diseases and brain tumors.

For additional information contact:
Kristin Nash
WeissCom Partners
415-302-7951
info@agyinc.com
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