KALYPSYS ANNOUNCES KEY APPOINTMENTS

8/4/2004

-Senior Management Promotion and Additions Made to Board of Directors-

San Diego, CA — August 4, 2004 — Kalypsys, a privately-owned drug discovery company, announced today a promotion in senior management and additions to its Board of Directors.

John McKearn, PhD, Kalypsys' Chief Scientific Officer, was appointed President and CSO. Dr. McKearn joined Kalypsys in July 2003 from Pharmacia where he was Senior Vice President of Research. Under Dr. McKearn's leadership, Pharmacia's 1,600 people-strong research organization discovered and developed drugs for inflammation, oncology, infectious disease, cardiovascular disease, CNS and ophthalmology. Dr. McKearn brings a strong and proven track record in pharmaceutical R&D;, evidenced by six commercialized products that were successfully developed under his management, including the blockbuster inflammation drugs, Celebrex® and Bextra®, and the newly launched heart failure drug, Inspra®.

Kalypsys also added two business leaders to the Kalypsys Board of Directors, Mr. Kenneth Langone and Mr. Al Heller. Mr. Langone has numerous years of experience in multiple business sectors, including his role as co-founder and current board member of Home Depot, Inc. Mr. Langone is currently the President, CEO, and Chairman of Invemed Associates, LLC an investor in Kalypsys' Series B financing and serves on the boards of ChoicePoint, Inc., General Electric Company, Yum! Brands, Inc and Unifi, Inc. In addition, he is chairman of the Trustees of New York University Medical School, member of the board of trustees of New York University and its executive committee, and Vice Chairman of the Board of Overseers of the NYU Stern School of Business.

Mr. Heller is an investment advisor for life science transactions to One Equity Partners, a JPMorganChase company. He is a member of the Board of Directors of iBIO, Medex Healthcare and The Multiple Myeloma Research Foundation. His 27 years in healthcare include experience with Baxter Healthcare most recently as Sr. Vice President and President, Renal. Prior to joining Baxter he was with G.D. Searle as President and COO until its acquisition by Pharmacia.

About Kalypsys

Kalypsys was founded in 2001 as a spin-out of the Genomics Institute of the Novartis Research Foundation (GNF). The company was created with a suite of ultra-high throughput screening, chemical, biological, and informatics technologies that permitted it to operate as a fully integrated drug discovery company from its outset.

Kalypsys uses its technologies and sizeable lead-like compound collection to improve the drug discovery research process and generate clinical candidates for itself and its partners. The company mission is to build a sustainable drug candidate pipeline from concept to proof of concept in the clinic with unmatched speed, efficiency, and success rates. Kalypsys currently has a pre-clinical pipeline of small molecule candidates which is advancing rapidly to clinical development. Kalypsys investors include the Sprout group, Tavistock Life Sciences, Invemed Catalyst Fund, CMEA Ventures, 5AM Ventures and the Novartis Bioventure Fund among others. For more information on Kalypsys, please visit www.kalypsys.org.