-Additions Made to Board of Directors-

San Diego, CA — March 15, 2005 — Kalypsys, a privately owned San Diego-based drug discovery and development company, announced today the appointment of Philip Needleman, PhD and August Watanabe, MD to its Board of Directors.

Dr. Needleman brings more than 30 years of pharmaceutical experience to the Board, most recently having served as senior executive vice president of Pharmacia. While there, he also held positions as chief scientist and chairman of research and development, overseeing the commercialization of blockbuster drugs including Celebrex®, Bextra®, Dynastat® and Inspra®.

Prior to his work at Pharmacia, Dr. Needleman served as president of Searle Research and Development and senior vice president and chief scientist of Monsanto. He spent 25 years as professor and chairman of the department of pharmacology at Washington University School of Medicine and has been honored with the John Jacob Abel Award of the American Pharmacology Society, the Research Achievement Award of the American Heart Association and the Chester Stock Award of the Memorial Sloane Kettering Cancer Center. Dr. Needleman is a member of both the National Academy of Science and the Institute of Medicine.

Also joining the Kalypsys Board of Directors is Dr. August Watanabe, a former senior executive at Eli Lilly Company where he served for 13 years during which time he occupied the positions of executive vice president of science and technology, president of Lilly Research Laboratories, and member of the Board of Directors. During his leadership of R&D; at Lilly the company became recognized as having one of the strongest pipelines of new compounds in the industry, including the recently launched drugs Alimta®, Cialis®, Cymbalta® and Straterra®.

Prior to joining Eli Lilly, Dr. Watanabe was a faculty member of the department of internal medicine at Indiana University School of Medicine for 18 years and was chairman of the department of internal medicine from 1983 to 1990. Dr. Watanabe was a director of the American Heart Association, and of the American College of Cardiology, and a member of the American Society of Clinical Investigation and the Association of American Physicians. Dr. Watanabe currently serves as a director of Guidant Corporation, the Indiana University Foundation and the Damon Runyon Cancer Research Foundation.

"Drs. Needleman and Watanabe are elite scientists with extensive experience and success in the discovery and development of new medicines," commented Isy Goldwasser, Kalypsys' chairman of the Board. "Their knowledge and judgment will further strengthen Kalypsys as the company rapidly advances its preclinical pipeline and prepares to sponsor its first IND."

About Kalypsys

Kalypsys is a privately owned San Diego small molecule drug company that uses a suite of validated, ultra-high throughput lead discovery technologies developed initially by the Genomics Institute of the Novartis Research Foundation (GNF). Kalypsys has an integrated drug discovery infrastructure and seasoned team of scientists that are advancing its pipeline into clinical development. Kalypsys uses its technologies and sizeable drug-like compound collection to improve the drug discovery research process and generate a robust pipeline for itself and its partners. Kalypsys' mission is to build a sustainable drug candidate pipeline from target to proof of efficacy and safety 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. For more information on Kalypsys, please visit www.kalypsys.org.