Bridge Technology Group Announces Investment Opinion on Cypress Bioscience, Inc.

NEW YORK--(BUSINESS WIRE)--March 8, 1999--

Bridge Technology Group LLC Comments On Cypress Bioscience Deal

With Fresenius AG Following Today's News

Please Visit Bridge's Web Site at www.BridgeNYC.com for

Detailed Report

Bridge Technology Group LLC announced today that it has reiterated its BUY recommendation on Cypress Bioscience, Inc. (Nasdaq: CYPB) following news from Cypress today pertaining to its planned partnership with Fresenius AG. The full text of this report can be accessed at Bridge's web site, at www.BridgeNYC.com.

Excerpts from the report follow:

As anticipated following the late-January announcement of a signed a letter-of-intent, CYPB announced that it had signed a definitive licensing and distribution agreement with Fresenius AG for the Prosorba(R) column, and provided further details on the transaction. The partnership is contingent upon final FDA approval of the Prosorba column for rheumatoid arthritis (RA), which we believe will occur very soon.

We continue to recommend purchase of CYPB stock, as we anticipate FDA approval of Prosorba for RA and a successful launch of the product during 1999. With its international presence and leadership in worldwide dialysis and other acute care centers and services, we believe Fresenius represents the ideal partner for CYPB to market the Prosorba column for RA. In addition, once the launch is underway, we are confident that CYPB will reallocate some resources to the development of Cyplex, a platelet substitute, the value of which we believe is not currently reflected in CYPB's stock price.

Terms of the Agreement: Under the agreement, Fresenius receives an exclusive license to distribute the Prosorba column in the US, Europe, Latin America and, subject to certain conditions, Japan and certain Asian countries. CYPB will be responsible for continued research, clinical and regulatory activities in the US, while Fresenius will lead international development and registration efforts. Also, CYPB will control sales and marketing efforts to the 3,900 US rheumatologists, while Fresenius will serve as exclusive distributor in the territory and will participate as a co-marketer in the US. Fresenius will also design what CYPB is calling "Prosorba-friendly" instruments and disposables for use in apheresis, dialysis and other centers of treatment. A majority-owned Fresenius company called Fresenius Medical Care ("FMC") is a leading provider of dialysis services in the world, with 770 dialysis sites in the US and contracts with more than 500 hospitals to offer services that include apheresis. CYPB will work with FMC to increase the availability of the column once approved, and will include the column in its services.

Financially, Fresenius is making an upfront $1.5 million equity investment in CYPB and could make an additional $54.0 million in license payments based on sales. CYPB and Fresenius will split profits on a 50/50 basis in countries outside the US. In the US, the profit split will be 50/50 until an undisclosed sales threshold has been reached and then CYPB will receive 60% of the profits to Fresenius' 40%. Fresenius has agreed to a purchase option of the Prosorba column manufacturing facility and has extended a line of credit to CYPB that would offset the purchase price if exercised. CYPB expects to have access to $7.0 million during 1999 under the line of credit. We believe that through these payments, and the significant reduction in burn rate (Fresenius will pick up 50% of the costs going forward), CYPB will be able to reach breakeven earlier, perhaps without additional financing.

The information in this press release has been obtained from sources that Bridge Technology Group LLC believes to be reliable, but the Company does not guarantee its accuracy or completeness. Neither the information nor any opinion expressed constitutes a solicitation by Bridge Technology Group LLC for the purchase or sale of any securities. Bridge Technology Group LLC has performed investment banking, consulting or other services for or may solicit investment banking, consulting or other business from, any company mentioned in this release. Bridge Technology Group LLC or persons associated with Bridge Technology Group LLC may at anytime be long or short any of the securities referred to herein and may make purchases or sales thereof while the Company's reports are in circulation or posted on the Bridge Technology Group LLC web site at www.BridgeNYC.com. This material, or any portion thereof, may not be reproduced without prior permission from Bridge Technology Group LLC. Bridge Technology Group LLC is not responsible for the contents of this document that is intended for electronic transmission and could be thus subjected to tampering or alteration. Copyright 1998 by Bridge Technology Group LLC. All rights reserved.