Axonyx Drug Phenserine has Potential to Modulate Toxic Amyloid Protein Involved in Alzheimer's Disease.

Business Editors, Health & Medical Writers

STOCKHOLM, Sweden--(BUSINESS WIRE)--July 24, 2002

AXONYX Inc. (NASDAQ: AXYX) announced today the results of a paper entitled, "Modulation of the expression of the beta-amyloid precursor protein gene in cell cultures: implication in drug development for Alzheimer's Disease," presented by Dr. Debomoy K. Lahiri at the 8th International Conference on Alzheimer's Disease & Related Disorders, currently taking place in Stockholm, Sweden.

Dr. Lahiri, of the Indiana University School of Medicine, and his colleagues presented additional evidence that Phenserine, a third generation acetylcholinesterase inhibitor, reduces the levels of the beta amyloid precursor protein (APP). As a result, the toxic amyloid beta protein (A(beta)), believed to trigger the cascade of events that ultimately leads to Alzheimer's Disease (AD), is also significantly reduced.

Dr. Lahiri explained, "This study revealed Phenserine's ability to regulate production of APP through changes within the 5'-Untranslated region (UTR) of messenger RNA (mRNA). This binding between the 5'-UTR and Phenserine impairs the ability of the mRNA to make APP in the protein factory of nerve cells."

Dr. Lahiri added, "Unlike other acetylcholinesterase inhibitors that simply suppress the activity of the cholinesterase enzyme, Phenserine's dual mechanism of action suggests that it not only has the potential to improve memory and cognition but also has the potential to slow the progression of the disease."

Dr. Lahiri further added, "By targeting mRNA, specifically the 5'-UTR, Phenserine has the potential to reduce toxic protein levels in AD patients. I believe that the 5'-UTR, which is a small 90 nucleotide region, is a novel target for drug development in AD."

Marvin S. Hausman, M.D., President and CEO of Axonyx, stated: "The additional data on Phenserine's mechanism of action confirm its potential disease modifying properties. We feel that this significant feature differentiates Phenserine from other drugs in this class and should play an integral part in the discussions we are having with European regulatory authorities and clinical investigators in anticipation of our Phase III pivotal trial."

Axonyx Inc. is a US-based biopharmaceutical company engaged in the acquisition and development of proprietary pharmaceutical compounds and new technologies useful in the diagnosis and treatment of Alzheimer's Disease, human memory disorders and prion-based illnesses such as Mad Cow Disease.

This press release may contain forward-looking statements or predictions. These statements represent our judgment as of this date and are subject to risks and uncertainties that could materially affect the Company, including those risks and uncertainties described in the documents Axonyx files from time to time with the Securities and Exchange Commission, specifically Axonyx's Annual Report on Form 10-K. Among other things, Axonyx can not assure that regulating APP will slow the progression of Alzheimer's Disease, that the pre-clinical results will translate into positive human data, and that Phenserine Phase III protocol discussions with European regulatory authorities will prove successful or that Phenserine Phase III protocol discussions with other regulatory authorities will occur in the upcoming months or if they do occur, that such discussions will prove successful. Axonyx cannot assure that it will obtain the necessary financing to complete Phase III Phenserine trials and that future clinical trials, if any, with Phenserine will prove successful and lead to a marketable drug product. Axonyx undertakes no obligation to publicly release the result of any revisions to such forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.