FOR IMMEDIATE RELEASE

October 16, 2003

New appointments prepare Morphochem for cancer product development.

Morphochem AG, the transnational evolutionary drug discovery and development company, has strengthened its Board in preparation for advancing its products into clinical development. Dr Max Link is taking over the role of Chairman from Dr Helmut Schühsler, who will now become Vice-Chairman. Dr Link has three decades of senior level experience in internationally renowned pharmaceutical and biotechnology companies including CEO and Chairman of Sandoz, and Board positions with Corange/Boehringer Mannheim, Cell Therapeutics and Human Genome Sciences.

In addition, Dr Thomas Hecht, joined the Board and will aid in directing and focusing Morphochem’s oncology programs. Dr Hecht has held numerous senior level positions at Amgen (Europe) and has extensive clinical and commercial expertise in oncology which includes clinical development, medical marketing management and licensing of biopharmaceuticals.

In stepping down Dr Helmut Schühsler, now Vice-Chairman of Morphochem and Managing Partner at Techno Venture Management, the lead investor at Morphochem, said, “Both Max’s appointment as an independent Chairman and Thomas’s appointment to the Board mark the transition of Morphochem to a product development company with a focus in oncology. I am delighted to welcome both of them onto the Board and feel confident that Morphochem will benefit from their expert direction throughout the next stage of its development.”

Dr Thomas Hecht added, “I have been aware of Morphochem’s ’smart chemistry’ and have followed the Company’s progress for quite some time. I welcome the opportunity to help Morphochem advance its small molecule, natural-like and natural compounds for the treatment of cancer from their various discovery stages, including late stage pre-clinical, into the clinical pipeline.“

Morphochem AG discovers and develops highly selective small molecule compounds for the medicines of tomorrow. The company integrates novel chemistries with biological screening on the basis of its proprietary MolMind™ technology. Its unique and highly integrated chemical genomics platform provides a continuous flow of novel drug candidates for un-met medical needs in major areas of indications such as cancer and anti-infectives

Morphochem was founded in Munich in 1996 and is an integrated, transnational drug discovery and development company, currently employing some 100 staff. To date the Company has raised  78 million in four financing rounds. www.morphochem.com

Dr Max Link, PhD was at Sandoz Pharma AG for 22 years where he fulfilled the role of CEO between 1987 and 1992, and Chairman of the Board between 1992 and1993. Since 1993 Dr Link has held a number of Executive and Board positions in a range of biopharmaceutical and biotech companies located in both the United States and Europe. These companies include: Corange/Boehringer Mannheim, Alexion Pharmaceuticals, Cell Therapeutics, Celsion Corporation, Discovery Laboratories, Human Genome Sciences and Protein Design Labs. Between March 2001 and September 2003, Dr Link was Chairman of the Board and CEO of Sulza Medica (now Centrepulse) where he engineered and oversaw their acquisition by Zimmer Holdings Inc, to create the world’s leading orthopedic company.

Dr Thomas Hecht was Vice President Marketing (Hematology, Oncology, New Products) for Amgen (Europe) AG, Lucerne, Switzerland, from 1999 until 2002. Previous to this he held different marketing and medical affairs positions at Amgen (Europe) and at Amgen GmbH, Munich, Germany. Dr Hecht has a strong focus on clinical development, marketing, medical-marketing management and licensing of biopharmaceuticals and has more than 14 years experience in the pharmaceutical and biotechnology industry. Previously he was co-head of the Program for Bone Marrow Transplantation, University of Freiburg, Germany, and worked as a physician at the University of Freiburg for several years. Currently he is with HHC, a biopharmaceutical consulting company founded in 2002, where he provides services to the pharmaceutical industry in medical/marketing development and licensing strategies. He also serves on the Board of Cytos Biotechnology AG, Zurich, Switzerland.

Other members of the Morphochem Supervisory Board include: Dr Helmut Schühsler, Vice-Chairman, Techno Venture Management (Munich, Germany). Ordinary members of the Board include: Mr Bryan Wood, Alta Berkeley Venture Partners (London/Geneva), Dr Andrew Greene, Merlin Biosciences (London, UK), Dr Alexander Dömling Morphochem AG (Germany). Dr Joachim Rothe, Life Science Partners (The Netherlands) is a guest with an observer’s seat.