Insmed Inc (INSM)

[ToysInTheAttic]

Insmed Raises Approximately $18.2 Million in Registered Direct Offering
9:05 AM EDT May 4, 2007
Insmed Inc. (Nasdaq:INSM) today announced that it has obtained agreements from investors to purchase approximately 20 million shares of its common stock at a price of $0.90 per share. Under the terms of the offering, Insmed will also issue 5-year warrants to purchase an aggregate of approximately 2 million additional shares of Insmed's common stock at an exercise price of $1.10 per share. The closing of the offering is expected to take place today, subject to the satisfaction of customary closing conditions.

The shares and warrants are being offered under a shelf registration statement previously filed with the Securities and Exchange Commission. C.E. Unterberg, Towbin served as sole placement agent for the offering.

Insmed estimates gross proceeds from the financing will be approximately $18.2 million. The net proceeds of the financing will be used for working capital and general corporate purposes.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities described above, nor shall there be any sale of such securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. Copies of the prospectus and the prospectus supplement can be obtained from C.E. Unterberg, Towbin, 350 Madison Avenue, New York, NY 10017, fax [phone].

About Insmed

Insmed is a biopharmaceutical company focused on the development and approval of drugs for the treatment of metabolic diseases with unmet medical needs. For more information, please visit www.insmed.com.