EXONHIT THERAPEUTICS announces EURO 8.3 MILLION in fund to support clinical development 

2 February 2004 Paris, France...ExonHit Therapeutics, the alternative RNA splicing based drug discovery company, announced today that it has successfully completed a EUR8.3 million convertible bond financing. ExonHit Therapeutics' existing shareholders and affiliate companies subscribed to the convertible bonds.

The proceeds from the convertible bonds will provide capital to fund operations into 2006. The funds provide ExonHit a solid financial base on which to develop its promising therapeutic pipeline. The company expects to deliver on several major milestones over the next 12 months. Final efficacy results of its IkomioTM clinical trial for the treatment of Amyotrophic Lateral Sclerosis will be available by fourth quarter 2004. A Phase I trial for its second small molecule compound (EHT 0202) for the treatment of neurodegenerative diseases, and two pre-clinical packages for major products in ExonHit's developing pipeline, EHT 0101 and EHT0204, will also be completed in 2004. 

ExonHit is a pioneer in the field of alternative RNA splicing, holding the
dominant position in the field of spliced RNA variant detection. The
Company's proprietary technology has allowed ExonHit to move at an unrivalled pace from the laboratory to the clinic exploiting the novel and patentable insights that DATAS reveals. 

ExonHit Therapeutics' Chief Executive Officer Bruno Tocque commented: "The bonds were issued to secure additional funding to support our rapid development as we become a successful drug discovery company. The renewed support from our world-class group of investors is a strong vote of confidence in ExonHit's product driven strategy and a validation of our leading position in alternative splicing."

Sophie Pierrin-Lepinard, General Partner at Banexi Ventures Partners stated: "We have been impressed by the significant progress that ExonHit Therapeutics has made since our last investment and are delighted to have had this opportunity to make a further financial commitment to support ExonHit's growth. The strength of the business that Bruno and his team have built on the backs of their expertise in alternative splicing gives a great confidence that ExonHit is well positioned to deliver its major drug development targets over the near future. Finally, we think ExonHit Therapeutics has a very impressive patent portfolio in the very exciting field of alternative splicing." 
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About ExonHit Therapeutics www.exonhit.com  

ExonHit Therapeutics is a privately-held company whose mission is to develop novel therapeutics and diagnostics for neurodegenerative diseases and cancer. The company is a leader in alternative RNA splicing holding a
premier scientific and intellectual property position in the field. 

ExonHit's proprietary gene profiling technology, DATASTM, systematically identifies RNA splicing alterations on a genome-wide scan. RNA splicing is altered during the onset and progression of disease, therefore, by distinguishing discrete splicing events the company is able to identify landmarks of disease.

DATASTM is central to internal drug discovery programs. The company has two drugs currently in clinical trials. In addition, the profiling technology is utilized in broader applications by several external therapeutic and diagnostic collaborators, and to capitalize on the growing needs for pharmacogenomic tools, and toxicity prediction assays. 

ExonHit Therapeutics, founded in 1997, is headquartered in Paris, France and has a US facility in Gaithersburg, Maryland. The company has 68 employees worldwide and has raised a total of EUR55.3 million. 

Contacts: 

ExonHit Therapeutics SA
Bruno Tocqué, CEO
Philippe Rousseau, CFO 
Tel: +33 (0)1 58 05 47 00

Media Relations
De Facto Communications plc 
Sylvie Roquefeuil-Dedieu
Richard Anderson
Tel +44 (0)207 496 33 00