Connetics Announces Special Meeting of Stockholders to Approve Merger With Stiefel Laboratories, Inc.

PALO ALTO, Calif. -- Connetics Corporation (Nasdaq:CNCT), a specialty pharmaceutical company that develops and commercializes dermatology products, today announced that it has scheduled a special stockholders' meeting, to be held on Wednesday, December 20, 2006, at 9:00 a.m. Pacific Time, of its stockholders of record as of the close of business on November 13, 2006, to vote to approve its proposed merger with Stiefel Laboratories, Inc.

Connetics said that if the merger receives the approval of holders of a majority of its outstanding common stock at this special meeting, and if the other conditions to closing have been satisfied by that time, then the earliest date on which the merger could be consummated would be December 21, 2006. The merger agreement between Connetics and Stiefel provides that unless the parties otherwise agree, the merger is to be consummated on the fifth business day after satisfaction of the conditions to closing, including approval by Connetics' stockholders.

As previously announced, Connetics signed the merger agreement with Stiefel on October 22, 2006. Upon closing of the transaction, holders of Connetics common stock will receive $17.50 per share in cash. The closing is subject to approval by holders of a majority of Connetics common stock, antitrust clearance and other customary closing conditions. The transaction was unanimously approved by Connetics' Board of Directors.

Additional Information About the Merger and Where to Find It

In connection with the proposed merger and the special meeting of its stockholders, Connetics has filed a proxy statement with the Securities and Exchange Commission (SEC) on November 15, 2006. The proxy statement will be mailed to Connetics stockholders of record as of the close of business on November 13, 2006. Investors and security holders are advised to read the proxy statement, and any other relevant documents filed by Connetics with the SEC, because they contain important information about the proposed merger. Investors and security holders may obtain a free copy of the proxy statement, and other documents filed by Connetics, from the SEC website at www.sec.gov, by contacting Connetics' investor relations office at 650-843-2851 or by contacting MacKenzie Partners, our proxy solicitor, at 800-322-2885.

Connetics' directors and executive officers may be deemed to be participants in the solicitation of proxies from the stockholders of Connetics in connection with the transaction. A description of the interests of directors and executive officers of Connetics in the solicitation and the merger is set forth in the proxy statement for the special meeting of stockholders.

About Connetics

Connetics Corporation is a specialty pharmaceutical company focused on the development and commercialization of innovative therapeutics for the dermatology market. Connetics has branded its proprietary foam drug delivery vehicle VersaFoam([R]). The Company's marketed products are OLUX([R]) (clobetasol propionate) Foam, 0.05%; LuxE q([R]) (betamethasone valerate) Foam, 0.12%; Soriatane([R]) (acitretin) capsules; Evoclin([R]) (clindamycin) Foam, 1%; and Verdeso (desonide) Foam, 0.05%, a low-potency topical steroid formulated to treat atopic dermatitis. Connetics is developing Primolux[TM] (clobetasol propionate) Foam, 0.05%, a super high-potency topical steroid formulation to treat atopic dermatitis and plaque psoriasis; Extina([R]) (ketoconazole) Foam, 2%, to treat seborrheic dermatitis; and Velac([R]) (a combination of 1% clindamycin and 0.025% tretinoin) Gel, to treat acne. Connetics' product formulations are designed to improve the management of dermatological diseases and provide significant product differentiation. In Connetics' marketed products, these formulations have earned wide acceptance by both physicians and patients due to their clinical effectiveness, high quality and cosmetic elegance. For more information about Connetics and its products, please visit www.connetics.com.

Forward-Looking Statements

Except for historical information, this press release includes "forward-looking statements" within the meaning of the Securities Litigation Reform Act. All statements included in this press release that address activities, events or developments that Connetics expects, believes or anticipates will or may occur in the future, including, particularly, statements about the timing of the closing of the merger with Stiefel, are forward-looking statements. All forward-looking statements are based on assumptions made by Connetics' management based on its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond Connetics' control, and which could cause actual results or events to differ materially from those expressed in such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, risks and other factors that are discussed in documents filed by Connetics with the Securities and Exchange Commission from time to time, including Connetics' proxy statement for its special meeting of stockholders filed with the SEC on November 15, 2006. Forward-looking statements represent the judgment of the Company's management as of the date of this release, and Connetics disclaims any intent or obligation to update any forward-looking statements.

Press Release Code: CNCT-G