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A New Generation of Oncology Products to be Advanced in Anti-Angiogenesis Program

WALTHAM, Mass. - March 9, 2004 - Compound Therapeutics, Inc., a biotechnology company leading the development of a new generation of high-potency targeted protein-based drugs, today confirmed details of its acquisition of strategic assets of Phylos, Inc., and announced the advancement of a preclinical oncology program in anti-angiogenesis.

With the acquisition agreement completed in December 2003, Compound Therapeutics acquired all rights to Phylos' proprietary display technology called PROFusionâ„¢, a platform for proprietary binding proteins called TRINECTINs, and an established TRINECTIN program in oncology. This technology had been developed after significant investment over the past 5 years. In addition to the acquisition of these valuable technology platforms and products, Compound Therapeutics is fortunate to have a significant number of key scientists from Phylos join the company to develop a new generation of clinical products.

Compound Therapeutics is now advancing several novel high-potential drug development candidates for the treatment of cancer. The company is committing significant resources to accelerate this preclinical program that focuses on TRINECTIN compounds which target vascular endothelial growth factor (VEGF) ligands and the VEGF receptor, key mediators of tumor neo-vascularization. These compounds offer important advantages over competitive VEGF anti-angiogenic products, with the potential for broader and longer-lasting activity.

"One of the components of highest value from the acquisition of Phylos assets are the anti-angiogenesis drug candidates, which we are focusing on in preclinical studies," said Frank Lee, Ph.D., President and CEO of Compound Therapeutics. "In addition, this acquisition strengthens our company's proprietary technology base, and is synergistic with our leading drug discovery and development capabilities to help advance our goals of delivering next-generation protein therapeutics to patients."

"We are very encouraged by our TRINECTIN compounds which target the VEGF receptor, and the significant potential of this approach to advance important new treatments in the fight against cancer" stated John Edwards, Compound Therapeutics' Vice President of Commercial Development. "The recently combined technologies of Compound Therapeutics and Phylos offer us a unique ability to rapidly identify and develop a new class of highly specific and potent products for treating cancer and other major diseases."

About Compound Therapeutics

Compound Therapeutics, Inc., which received $12 million in series A Preferred Stock financing in March 2003, is a privately held biotechnology company developing the next generation of protein-based drugs through the use of an advanced product platform for engineering new proteins. The company's novel protein drugs are being developed with superior therapeutic properties, including higher potency, greater specificity, and lower dosing than conventional protein drugs. Using its robust drug discovery platform that includes its proprietary protein display technology, PROfusionâ„¢, Compound Therapeutics' research and development activities employ an advanced product platform for engineering new proteins in four select disease areas: oncology, inflammation, autoimmune disorders and infectious disease. The company's discovery platform is the foundation for a product-generating capability that synthesizes novel biotherapeutics including proprietary binding proteins, TRINECTINsâ„¢, and binding proteins linked to enzymes, called Target Addressable Enzymes (Adzymes). Compound Therapeutics is funded by three leading venture capital firms, Atlas Ventures, Flagship Ventures, and Polaris Ventures.

Contacts:

John Edwards
Compound Therapeutics
Tel: (781) 209-2337
jedwards@compoundtherapeutics.com

Paul Kidwell
(Media Contact)
Tel: (617) 296-3854
paul_kidwell@hotmail.com