KALYPSYS APPOINTS JOHN McKEARN AS CHIEF SCIENTIFIC OFFICER

7/1/2003

Kalypsys, Inc., today announced the appointment of John McKearn, Ph.D. as chief scientific officer effective July 2003. Dr. McKearn was formerly the senior vice president of discovery research at Pharmacia.

While at Pharmacia, Dr. McKearn created an integrated worldwide drug discovery team of more than 1600 research scientists after the merger of Pharmacia & Upjohn with Monsanto Company and its G.D. Searle unit. He oversaw Pharmacia's research and development efforts, focusing on arthritis and inflammation, infectious diseases, diseases of the central nervous system, oncology, cardiovascular diseases and ophthalmology. R&D; efforts under his leadership resulted in a variety of successful prescription drugs, including Celebrex®, Bextra®, Dynastat®, Arthrotec®, Daypro® and Inspra® and the veterinary drug Deramaxx®. Prior to his time at Pharmacia, Dr. McKearn held a number of increasingly senior positions at Searle, culminating in his position as vice president of discovery research. Dr. McKearn has more than 40 issued patents in the area of blood cell development, cancer and inflammation treatment and has co-authored more than 70 peer-reviewed scientific papers. He holds a bachelor's degree in biology from Northern Illinois University and a Ph.D. in Immunology from the University of Chicago.

"John McKearn's appointment is a pivotal step for the continued growth and development of Kalypsys," said Isy Goldwasser, Chairman of the Board. "He appreciates the challenges faced by the industry, and his decision to join the company makes a strong statement about the impact of the Kalypsys technology on the drug discovery process."

"John has a stellar record leading successful R&D; efforts in the pharmaceutical industry and recruiting world-class talent," said Pratik Shah, chief business officer at Kalypsys. "We look forward to combining John's talent and proven expertise with our current capabilities to rapidly advance pharmaceutical product candidates out of the lab and into the clinic."

"From the start, I was impressed with the integrated technology that Kalypsys has assembled -- from pathway-based discovery to chemical optimization, the key pieces for streamlined drug discovery are all there and all working together," said Dr. McKearn. "I believe this approach will not only facilitate internal discovery and development projects, but also will be of great value to companies who recognize the need for a faster, smarter drug R&D; process."

About Kalypsys

Kalypsys is a biopharmaceutical company that uses advanced automation technologies to first evaluate drug candidates in cellular models of disease and then optimize the safety and efficacy of select candidates. Through the use of its technology, Kalypsys is able to make better decisions earlier in the discovery process. Kalypsys is developing drug leads in multiple therapeutic areas including cancer, inflammation, metabolic diseases and cardiovascular disorders. In addition to carrying out drug discovery programs based on internal research, Kalypsys seeks to enhance partners' discovery programs through technology transfer or collaborative relationships. Kalypsys completed a $43 million series A financing round in April of 2002, led by the Sprout Group, co-led by Tavistock Life Sciences and including CMEA Ventures, Lombard Odier Darier Hentsch & Cie, 5AM Ventures, Novartis Bioventure Fund, Aravis Ventures, Alejandro Zaffaroni and the Singapore E.D.B.

For more information on Kalypsys, please visit http://www.kalypsys.org.

For further information please contact: Pratik Shah, Ph.D. of Kalypsys, +1-858-754-3333; or Liz Thompson, Ph.D. of Atkins + Associates, +1-858-527-3492, for Kalypsys.