Class Action Suit Filed Against Pathogenesis Corporation ``PGNS'' and Certain of its Officers and Directors for Violations of the Federal Securities Laws.

SEATTLE--(BUSINESS WIRE)--March 26, 1999--A class action has been commenced in the United States District Court for the Western District of Washington on behalf of all purchasers of the common stock of Pathogenesis Corporation ("PGNS") during the period from January 25, 1999 through March 22, 1999 (the "Class Period").

The complaint charges PGNS and certain of its officers and directors with violations of the federal securities laws. Specifically, plaintiff has brought claims for violations of sections 10(b) and 20 of the Securities Exchange Act of 1934.

The complaint alleges that PGNS and certain of its officers and directors participated in a fraudulent scheme to misrepresent the Company's sales of its primary product, the antibiotic Tobramycin ("TOBI"). Plaintiff alleges that defendants failed to disclose that PGNS' increased sales of TOBI in the fourth quarter of 1998 primarily resulted from wholesalers' overstock purchases made to avoid PGNS' imminent increase in TOBI's price, rather than the increasing market acceptance of or growth in the patient base for the drug. The complaint also alleges that defendants failed to disclose their knowledge that sales of the drug in the first quarter would be depressed as a result of its fourth quarter 1998 sales program. These misrepresentations are alleged to have caused PGNS shares to trade at artificially inflated prices during the Class Period.

The Plaintiff seeks to recover damages on behalf of all purchasers of PGNS securities during the Class Period (the "Class"). The plaintiff is represented by Hagens Berman, P.S. Hagens Berman has concentrated its practice in the field of class action and multi-plaintiff litigation, representing plaintiffs in numerous securities and investment fraud actions throughout the country. Hagens Berman has been appointed lead or co-lead counsel on behalf of defrauded investors, including individual and institutional shareholders in numerous complex financial cases, and has been responsible for many large recoveries which, in the aggregate, total more than $1 billion. For more information about the firm, visit our website at www.Hagens-Berman.com.

If you are a member of the Class described above, you may, no later than 60 days from the date of this notice, move the Court to serve as lead plaintiff of the Class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiffs' counsel Clyde A. Platt at Hagens Berman, P.S. at 206/623-7292 or toll free at 888/381-2889 or via e-mail at [e-mail].