CombiChem Launches Materials Science Initiative; Establishes Scientific Advisory Board and Appoints Diana Lees as Director, New Business Ventures.

SAN DIEGO--(BW HealthWire)--March 17, 1999--CombiChem Inc. (Nasdaq NMS:CCHM) announced today that it is pursuing new applications of its Discovery Engine(TM) technology in the field of materials science.

CombiChem plans to develop novel materials such as catalysts, polymers, food additives, and other non-pharmaceutical entities. The company has initiated its efforts in this field with the establishment of a Materials Science Scientific Advisory Board (SAB) and the appointment of Diana D. Lees as director, new business ventures.

"This advisory board combines world-class science with a strong understanding of commercial needs and applications. It's a privilege to have their unique combination of knowledge and experience to guide our discovery and development efforts," said Vince Anido, CombiChem's president and chief executive officer.

The SAB has been established with four prominent professors from the department of Chemistry, Cornell University, and additional members will be added over time. The current advisors are: Geoffrey W. Coates, Ph.D., assistant professor; Francis J. DiSalvo, Ph.D., John A. Newman, professor of physical science; Stephen Lee, Ph.D., professor; and Roald Hoffmann, Ph.D., Frank H. T. Rhodes professor of humane letters and recipient of the 1981 Nobel Prize in Chemistry.

"CombiChem has successfully applied its proprietary technology in pharmaceutical discovery and lead optimization," observed Lee R. McCracken, senior vice president of corporate development/new business ventures. "There are attractive possibilities to apply our technologies to large non-pharmaceutical market segments."

CombiChem believes that its technology platform could lead to the development of new materials in a faster, more effective, and less expensive manner as compared with traditional chemistry methods. In addition to revenues from potential collaborations, the company also anticipates that it will have the opportunity for revenue from downstream manufacturing rights for these novel materials.

To drive CombiChem's efforts in this area, Lees has been appointed to the newly created position of director, new business ventures. Lees will be responsible for commercializing CombiChem's unique Discovery Engine technology for the discovery and optimization of novel materials and organic entities.

"With nearly 20 years in sales and marketing in the biotech industry, Diana brings a tremendous background to CombiChem's launch of this exciting new business opportunity," said McCracken.

Prior to joining CombiChem, Lees served as market development manager at Argonaut Technologies, where she championed the introduction of novel organic synthesis products. She previously served as sales manager at Molecular Simulations Inc. (MSI) for non-pharmaceutical markets. Lees earned her A.B. in biology from Bryn Mawr College.

CombiChem Inc., based in San Diego, is a computational discovery company that is applying its proprietary design technology and rapid synthesis capabilities to accelerate the discovery process for new drugs and chemical products. The company believes its approach offers the pharmaceutical and chemical industries the opportunity to conduct their discovery efforts in a more productive and cost effective manner. Using its proprietary Discovery Engine(TM) process, CombiChem focuses on the generation, evolution, and optimization of new lead candidates for its collaborative partners, who will then develop, manufacture, market, and sell the resulting products.

CombiChem has established collaborative agreements with Athena Neuroscience Inc., a wholly owned subsidiary of Elan Corp. plc., ICOS Corp., ImClone Systems Inc., Novartis Crop Protection AG, Ono Pharmaceutical Co. Ltd., Roche Bioscience, Sumitomo Pharmaceuticals Co. Ltd. and Teijin Limited.

Except for the historical and financial information contained herein, the matters discussed in this news release may contain forward-looking statements which involve risks and uncertainties, including a new and uncertain technology employed by CombiChem in a new area, a dependence on the efforts of third parties, dependence on intellectual property rights, the competitive nature of the company's industry and risks of obsolescence of certain technology. Actual results may differ materially from those projected. Forward-looking statements represent the judgment of the company as of the date of this release. CombiChem disclaims, however, any intent or obligation to update any forward-looking statements.

CombiChem's releases are on the Web at www.combichem.com.