ALYPSYS ANNOUNCES KEY APPOINTMENTS

5/16/2005

- Court R. Turner, JD, and Stewart Noble, Ph.D. promoted to Vice President Positions —

- Andy Shiau, Ph.D. promoted to Director, Biology -

San Diego, CA — May 16, 2005 — Kalypsys, a privately-owned drug discovery company, announced today the promotions of Court R. Turner to Vice President, Strategic Alliances and Senior Legal Counsel, Stewart Noble to Vice President, Discovery Chemistry and Andy Shiau to Director, Biology.

"Court, Stewart and Andy have consistently contributed to the progress and success of Kalypsys and are deserving of and qualified to fill these roles," commented John McKearn, Ph.D., President and CEO. "Having a strong leadership team is imperative, as Kalypsys prepares to enter clinical trials later this year."

Mr. Turner joined Kalypsys in 2002 as Director of Legal Affairs and has overseen general legal issues for the company, including instrument and pharmaceutical transactions and alliances. Prior to joining Kalypsys, Mr. Turner was a member of the Legal and Strategic Alliances Group at Aurora Biosciences Corporation, now Vertex Pharmaceuticals. In this role, Mr. Turner managed filings with the Securities and Exchange Commission, mergers and acquisitions, partnerships, intellectual property licensing and contract negotiation. Mr. Turner received his law degree at the University of San Diego.

To develop and further the company's pipeline, Stewart Noble, Ph.D., joined Kalypsys in 2003 as Director of Chemistry where he managed all chemistry operations and progress of drug targets. Dr. Noble has more than 20 years of drug discovery experience at companies like Pharmacia, G.D. Searle, Synaptic Pharmaceutical Corporation and Glaxo, Inc. where he advanced 16 clinical candidates including the HIV/HBV drug, Epivir®. He earned his Ph.D. in Chemistry at the University of Birmingham, England, and has 24 issued and pending patents and has co-authored 31 peer-reviewed papers.

Biology is also an essential element to Kalypsys' research and development. To lead this area of research, Andy Shiau, Ph.D., has been promoted to Director of Biology. Since joining the company in 2004, Dr. Shiau has led a group that has created the technological infrastructure needed to implement structure-based drug design and determined a large number of crystal structures of targets bound to Kalypsys proprietary lead compounds. Prior to Kalypsys, Dr. Shiau was Orphan Nuclear Receptor (ONR) Project Leader at Tularik Inc. where he coordinated all aspects of research on several ONRs involved in metabolic disease. Dr. Shiau received his Ph.D. in Biochemistry from the University of California at San Francisco. He is a co-author of 15 scientific papers, and is a co-inventor of six issued or pending patents.