ARIAD Receives Expanded Patent Coverage for Targeted Gene Activation Technology.

Business & Health/Medical Editors

CAMBRIDGE, Mass.--(BUSINESS WIRE)--Sept. 13, 2000

Robust Activation of Gene Expression (RAGE(TM)) technology enhances

ARIAD's genomics and gene therapy platforms

ARIAD Pharmaceuticals, Inc. (Nasdaq:ARIA) today announced the issuance of a new U. S. patent covering its targeted gene activation technology, known as Robust Activation of Gene Expression (RAGE(TM)).

This technology makes potent activation of endogenous and engineered genes feasible and produces far higher levels of target gene expression than those typically achieved with other naturally occurring or engineered activators of gene transcription.

ARIAD scientists have shown that maximal protein production in the cell is highly dependent on the composition and structure of gene activator proteins (also known as transcription factors) used to turn on gene expression and that this process can be enhanced dramatically by clustering the gene activator proteins together in unique ways or by modifying them at specific sequence sites - the basis of ARIAD's new technology.

ARIAD's RAGE technology has numerous commercial applications in drug discovery, protein therapeutics, gene therapy and biotechnology manufacturing. Experimental activation of target genes, especially when combined with precise gene regulation and at therapeutically relevant levels, is a powerful tool for analysis of gene and cellular function. High-level activation of naturally occurring genes in cells using the RAGE technology also provides a new means of manufacturing therapeutic proteins while avoiding the need to introduce or otherwise manipulate the target gene. This should overcome potential technical and intellectual property issues relating to the use of such therapeutic genes.

In addition to the new RAGE technology for targeted gene activation, ARIAD is developing two approaches to regulated gene therapy. ARGENT(TM) provides sustained, long-term delivery of proteins, such as erythropoietin (for anemia), interferons (for cancer and multiple sclerosis), and Factors VIII and IX (for hemophilia). RAPID(TM) permits the delivery of short bursts of proteins, such as insulin (for diabetes) and endorphins (for pain). Both of these approaches are ideally suited for clinical use, because they are controlled by ARIAD's proprietary small-molecule drugs.

"ARIAD's dominant intellectual property portfolio covering potent activation and dose-dependent regulation of genes puts us in a unique position to exploit the diverse commercial applications of these enabling technologies, " said Harvey J. Berger, M.D., chairman and chief executive officer of ARIAD. "The RAGE technology already is incorporated into our regulated gene therapy products and will expand the spectrum of proteins that can be delivered effectively by ARGENT protein therapy."

ARIAD intends to establish its RAGE technology - along with its proprietary gene regulation technologies, ARGENT and RAPID - as the technologies of choice for biotechnology and pharmaceutical companies to use in their genomics, proteomics, and drug discovery programs and in therapeutic protein manufacturing.

Copies of the new ARIAD patent (U.S. Patent No. 6,117,689), as well as a prior patent relating to the RAGE technology (U.S. Patent No. 6,015,709) are available on the World Wide Web at http://www.uspto.gov/web/menu/search.html.

ARIAD Pharmaceuticals, Inc. (www.ariad.com) is a leader in the discovery and development of gene therapy, cell therapy, stem cell therapy and protein therapy products featuring dose-dependent regulation by small-molecule drugs, as well as small-molecule inhibitors of signal transduction.

Some of the matters discussed in this news release are forward-looking statements that involve risks and uncertainties. For example, there can be no assurance that if a patent is issued, any such patent would be enforceable or provide meaningful protection. Other risks and uncertainties include, but are not limited to, risks and uncertainties regarding the Company's preclinical studies, the ability of the Company to conduct clinical trials of its products and the results of such trials, as well as risks and uncertainties relating to economic conditions, markets, products, competition, intellectual property, services and prices, key employees, future capital needs, dependence on our collaborators and other factors under the heading "Cautionary Statement Regarding Forward-Looking Statements" in ARIAD's Annual Report on Form 10-K for the fiscal year ended December 31, 1999 filed with the Securities and Exchange Commission.