SAN DIEGO, Calif., Sept. 20, 2006 — Kalypsys Inc. announced today the appointment of Richard Heyman, Ph.D., as senior vice president, drug discovery, and Richard Lai Fatt, Ph.D., as vice president, corporate development.

Dr. Heyman will be responsible for directing the company's drug discovery efforts as well as interfacing with new corporate partners. Dr. Lai Fatt will focus on business initiatives and corporate development activities related to Kalypsys' growing drug pipeline.

"The executives have joined Kalypsys at a time that we're rapidly advancing three internally discovered drug candidates toward important clinic proof," said John McKearn, Ph.D., president and CEO of Kalypsys. "They will strengthen the current management team as we transform Kalypsys into a pharmaceutical company that is focused on discovering and developing a highly valued drug pipeline."

Dr. Heyman has more than 16 years of experience in the biotechnology and pharmaceutical industries. Prior to joining Kalypsys, he was senior vice president of metabolic diseases for Exelixis Inc., a San Francisco-based drug discovery and development company for which he led the San Diego research site. Before this, he was chief scientific officer and a co-founder of X-Ceptor Therapeutics Inc.

Dr. Heyman also held positions of increasing responsibility with Ligand Pharmaceuticals, where he was responsible for multiple drug discovery programs, including two retinoids that were approved for the treatment of cancer. In addition, he established and managed numerous collaborations with pharmaceutical companies that resulted in clinical-stage compounds, and worked closely with corporate partners to move compounds from the bench into the clinic. He holds a Ph.D. in pharmacology from the University of Minnesota and a B.S. in chemistry from the University of Connecticut.

Dr. Lai Fatt has extensive business development and new product planning experience in the pharmaceutical industry with a focus on the therapeutic areas of metabolic diseases, inflammation and oncology. Prior to joining Kalypsys, he was vice president of business development and strategic marketing for Isis Pharmaceuticals Inc., a Carlsbad, Calif.-based pharmaceutical company, where he established several product licensing and drug discovery collaborations. He also provided strategic marketing support to Isis' broad product portfolio.

Before this, Dr. Lai Fatt was the director of worldwide business development for DuPont Merck Pharmaceutical. In addition, he held sales and marketing positions with Schering- Plough and Lederle and participated in the launch of several new products. He holds a Ph.D. in biology from McMaster University and a B.S. in biology from the University of Miami.

About Kalypsys

Kalypsys is a San Diego-based pharmaceutical company that is changing the way drugs are discovered and developed. Unmatched from idea to clinical proof, Kalypsys seamlessly integrates its scientific expertise and technologies to develop small molecule drugs in a fast, efficient and effective manner. The company's discovery and clinical pipeline consists of drugs that target inflammation, oncology and cardiovascular/metabolic diseases. In addition to focusing on its own products, Kalypsys partners with top-tier pharmaceutical companies to rapidly advance the identification, development and commercialization of new therapeutics. For more information, call 858.754.3300 or visit http://www.kalypsys.org/