KALYPSYS TO PROVIDE THE FLORIDA SCRIPPS RESEARCH INSTITUTE WITH NEXT-GENERATION LEAD DISCOVERY TECHNOLOGY

6/15/2005

San Diego, June 16, 2005 — Kalypsys, Inc., a privately owned drug discovery and development company and The Scripps Research Institute (TSRI) entered into an agreement in which Scripps will access Kalypsys' proprietary ultra-high throughput screening technologies as a key enablement for the newly created TSRI site in Florida.

"We are pleased to be selected for this Florida initiative," stated John P. McKearn, president and CEO of Kalypsys. "Developing a state-of-the-art research center will have a significant impact on Florida's economic development in the area of biotechnology and biomedical research and we are honored our technology has been selected to assist in this endeavor."

The Kalypsys technology platform is designed and manufactured to meet the specific needs of each partner. The platform is comprised of a suite of lead discovery solutions, including a highly automated, robotic, ultra-high throughput screening technology capable of screening a variety of biochemical and biologically relevant cellular assays in 1536-well formats. The power and robustness of the Kalypsys technologies make it ideally suited to probe a large number of diverse targets rapidly.

With the Kalypsys system, Scripps Florida is developing leading-edge technologies to enable scientists to examine the basic biology of human health and find better treatments for a variety of devastating human diseases. A team of accomplished scientists is implementing research programs addressing diseases such as AIDS, cancer, diabetes, obesity, prion diseases, Parkinson's disease and schizophrenia among others. The research programs focus on genetic disease informatics, cancer biology, infectology, genetics, proteomics, drug metabolism and pharmacokinetics.

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 and currently has a pre-clinical pipeline of small molecule candidates which is advancing rapidly to clinical development. Kalypsys has announced other technology transfer partnerships with Merck & Co., Inc, the National Institutes of Health and the Los Alamos National Laboratories. For more information on Kalypsys, please visit www.kalypsys.org.

About The Scripps Research Institute and Scripps Florida

The Scripps Research Institute in La Jolla, California, and Palm Beach County, Florida, is one of the world's largest, private, non-profit biomedical research organizations. It stands at the forefront of basic biomedical science that seeks to comprehend the most fundamental processes of life. Scripps Research is internationally recognized for its research into immunology, molecular and cellular biology, chemistry, neurosciences, autoimmune, cardiovascular, and infectious diseases, and synthetic vaccine development.

The Scripps Research Institute employs approximately 3,000 scientists, postdoctoral fellows, scientific and other technicians, doctoral degree graduate students, and administrative and technical support personnel in 14 buildings overlooking the Pacific Ocean in the northernmost neighborhood of the city of San Diego.

Scripps Florida will be a 364,000 square-foot, state-of-the-art biomedical research facility to be built on 100 acres of undeveloped land in Palm Beach County. The facility will focus on basic biomedical science, drug discovery, and technology development, employing more than 500 researchers and support staff by 2010. Palm Beach County and the state of Florida have provided start-up economic packages for development, building, staffing, and equipping the campus.

Scripps Florida is now operating out of a 40,000 square-foot facility on the campus of Florida Atlantic University in Jupiter.