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Plenaxis R.I.P.

http://biz.yahoo.com/bw/060620/20060620005364.html?.v=1

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PRAECIS PHARMACEUTICALS INCORPORATED Announces Cessation of Plenaxis(R) Disposition Efforts

Tuesday June 20, 7:00 am ET

Plans to Explore Financing Alternatives and Other Strategic Options

WALTHAM, Mass.--(BUSINESS WIRE)--June 20, 2006--PRAECIS PHARMACEUTICALS INCORPORATED (NASDAQ: PRCS ) today reported that it will not be able to enter into by June 30, 2006 a license or sale transaction with respect to its Plenaxis® assets. The Company said it will cease its previously announced process to identify and consummate such a transaction. Accordingly, as previously disclosed, the Company will work with the United States Food and Drug Administration to discontinue the limited distribution of the product in the United States as soon as reasonably practicable and will not pursue further the commercialization of Plenaxis outside the United States. The Company will also promptly discontinue any remaining Plenaxis®-related activities, except as necessary to support the wind-down of product distribution in the United States. During this wind-down, the Company will continue to evaluate potential opportunities for these assets to the extent such opportunities arise. Due to the termination of its active efforts to license or sell its Plenaxis® assets, the Company currently estimates that it will record a non-cash impairment charge of approximately $3.6 million in the second quarter of 2006 related to the remaining value of capitalized Plenaxis® inventory and equipment. The Company will also record an additional charge in the second quarter of approximately $3.9 million related to the present value of its remaining commitments under certain of its Plenaxis® manufacturing and supply agreements.

The Company continues to believe that its existing cash and investments will be sufficient to meet its working capital and capital expenditure needs, at current levels, through approximately the end of 2007. In an effort to ensure that the Company has available resources to pursue its operations beyond 2007, the Company intends to actively explore financing alternatives, as well as other strategic options which may be available to achieve and enhance shareholder value. The Company has engaged Canaccord Adams, an international investment banking firm with significant expertise in the life sciences sector, to advise and assist the Company in these efforts.

The Company stated that there can be no assurance that these efforts will result in additional financing for the Company or in any other transaction. The Company does not currently intend to disclose developments with respect to these efforts unless and until its Board of Directors has approved a specific transaction.

About PRAECIS

PRAECIS PHARMACEUTICALS INCORPORATED is a biopharmaceutical company focused on the discovery and development of novel compounds that have the potential to address unmet medical needs or improve existing therapies. PRAECIS has a novel MetAP-2 inhibitor, PPI-2458, in clinical development for cancer indications, including non-Hodgkin's lymphoma and solid tumors, as well as an innovative drug discovery technology, DirectSelect(TM), which enables the generation and practical use of ultra-large libraries for the discovery of orally active compounds for drug development.
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