Bridge Technology Group LLC Reiterates Buy Recommendation On Cypress Bioscience Following Today's News; Please Visit Bridge's Web Site At www.BridgeNYC.com for Detailed Report.

NEW YORK--(BUSINESS WIRE)--Jan. 25, 1999--Bridge Technology Group LLC announced today that it has reiterated its BUY recommendation on Cypress Bioscience, Inc.(Nasdaq: CYPB) following news from Cypress today.

The full text of this report can be accessed at Bridge's web site, at www.BridgeNYC.com.

Excerpts from the report follow:

"CYPB issued two announcements today -- one pertaining to an FDA letter of deficiency relating to the review of the Prosorba column for rheumatoid arthritis (RA), and one pertaining to a signed letter of intent (LOI) with Fresenius AG for a global license and distribution agreement on the same product. We have discussed both events with senior management, and while the FDA letter will result in a short-term delay, we continue to believe the column will be approved in the near term and that the Fresenius agreement, upon execution of a definitive agreement, is an extremely positive development for CYPB. We continue to recommend purchase of CYPB common shares, and suggest investors BUY on any weakness attributed to the FDA action.

FDA Request for Information: Last Tuesday, CYPB received a letter of deficiency identifying questions that must be addressed prior to approval. This letter came two days before the end of the 180-day expedited review period, and pertained to questions that arose after a routine compliance audit of clinical trial data. The five questions all related to the Pivotal Phase III trial data, and were answered by CYPB in a response to the FDA late last week. In this letter, the FDA also stated its desired protocol for a post-approval Phase IV study. It is our understanding that CYPB management, in a conference call with the FDA, has agreed to the FDA's desired study design. We believe that the compliance audit questions were routine, and that this request will result in only a short-term delay in the process that will lead to the approval of Prosorba for use in RA.

LOI With Fresenius AG: CYPB announced that it has signed an LOI with Fresenius AG. The LOI contemplates an exclusive license and distribution agreement for the Prosorba column in the US, Europe and Latin America. The LOI suggests a collaborative effort in the US and Europe, with CYPB and Fresenius making joint investments and sharing profits from sales. Additionally, Fresenius will make certain equity investments in CYPB and make cash milestone payments. Fresenius will sell directly into the blood bank market, will set up operations in its extensive network of dialysis centers, will develop new equipment integrating the Prosorba device into the Fresenius apheresis equipment, and will provide for the development of mobile units to provide the Prosorba therapy. Fresenius is a world leader in the production of apheresis equipment, and in the operation of dialysis centers, and we believe the ideal partner for CYPB for this product. CYPB management anticipates the signing of definitive agreements in late March 1999."

Bridge Technology Group LLC is focused on identifying emerging growth companies in the healthcare and information technology sectors that offer compelling investment opportunities over the long term. By providing comprehensive financial services, including corporate finance, M&A advisory, strategic partnering and communications consulting, the company positions itself to provide a fully integrated package of value-added services to emerging growth companies.

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