Curis Announces Receipt of Extended Funding from Wyeth.

CAMBRIDGE, Mass. -- Curis, Inc. (NASDAQ: CRIS), a therapeutic drug development company, today announced that Wyeth has exercised its option under the 2004 agreement to extend funding to continue development of therapeutic applications of the Hedgehog agonist with a primary focus on neurological disorders. By exercising this option, Wyeth has agreed to extend the research term by one year through February 9, 2007 (previously February 9, 2006). Curis expects Wyeth to select a development candidate in the next twelve to eighteen months, and to file an investigational new drug, or IND, application approximately twelve months thereafter.

"We are encouraged by the continued dedication that Wyeth has shown to the Hedgehog agonist program for neurological disorders. The extension of funding for the program serves as a validation of the progress made to date on this program, and we look forward to working with Wyeth to select a development candidate for stroke and other neurological disorders," said Daniel R. Passeri, President and Chief Executive Officer of Curis, Inc. "By meeting with Wyeth scientists on a quarterly basis, Curis is able to learn more about the late preclinical development process, which may prove to be invaluable at a later date when Curis prepares to move its own products from preclinical development into the clinic."

About the Wyeth Agreement

In January 2004, Curis entered into a collaboration agreement with Wyeth to continue the development of drug candidates for the treatment of neurological disorders and other potential indications. Wyeth is one of the world's largest research-driven pharmaceutical companies with broad expertise in the development of drugs to treat neurological disorders and other diseases. Under the terms of the collaboration, Wyeth paid Curis an up-front license fee and is obligated to provide two years of research funding and recently extended its funding for an additional year. In addition, if clinical development of any Hedgehog agonist technology-based products is successful, Wyeth is obligated to pay Curis clinical milestone payments and royalties on product sales. Under terms of the updated agreement, Wyeth can terminate the relationship within 60 days of written notice.

About Curis, Inc.

Curis, Inc. is a therapeutic drug development company. The Company's technology focus is on regulatory pathways that control repair and regeneration. Curis' product development involves the use of proteins or small molecules to modulate these pathways. Curis has successfully used this technology and product development approach to produce several promising drug product candidates in the fields of cancer (under two collaborations with Genentech, one of which includes a co-development arrangement for a basal cell carcinoma product candidate that is currently in Phase I clinical trials), neurological disorders (under collaboration with Wyeth), hair growth (under collaboration with Procter & Gamble), kidney and other diseases (licensed to Ortho Biotech Products and under development at Centocor, both subsidiaries of Johnson & Johnson), and cardiovascular disease. Curis also possesses robust small molecule drug screening technologies and preclinical scientific expertise that Curis believes it can use to create a sustainable drug candidate pipeline including, for example, its efforts in Spinal Muscular Atrophy (under sponsored research agreement with the Spinal Muscular Atrophy Foundation). For more information, please visit the Curis web site at www.curis.com.

Cautionary Statement: This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements concerning Curis' expected timeline for Wyeth to select a development clinical candidate and to file the related IND application and the value that Curis' interactions with Wyeth may have on its future preclinical or clinical development. Forward-looking statements used in this press release may contain the words "believes", "expects", "anticipates", "plans", "seeks", "estimates" or similar expressions. These forward-looking statements are not guarantees of future performance and involve risks, uncertainties, assumptions and other factors that may cause Curis' actual results to be materially different from those indicated by such forward-looking statements. Actual results can be affected by a number of important factors including, among other things: adverse results in Curis' and its strategic collaborators' and licensees' product development programs; delays in enrolling patients for its basal cell carcinoma clinical trial, difficulties or delays in obtaining or maintaining required regulatory approvals for products being developed by Curis and its collaborators and licensees; Curis' ability to obtain or maintain the patent and other proprietary intellectual property protection necessary for the development and commercialization of products based on its technologies; changes in or Curis' inability to execute its business plan; the risk that Curis does not obtain the additional funding required to conduct research and development of its product candidates, fund its co-development obligations under its collaboration with Genentech and execute its business plan; unplanned cash requirements and expenditures; risks relating to Curis' ability to enter into and maintain important strategic collaborations, including its ability to maintain its current collaboration agreements with Genentech, Wyeth and Ortho Biotech Products; the risk that competitors will discover and develop signaling pathway-based or other competing therapeutics faster and more successfully than Curis and its collaborators are able to; and other risk factors identified in Curis' most recent Annual Report on Form 10-K, Quarterly Report on Form 10-Q and subsequent reports periodically filed with the Securities and Exchange Commission. In addition, any forward-looking statements represent the Company's views only as of today and should not be relied upon as representing its views as of any subsequent date. Curis disclaims any intention or obligation to update any of the forward-looking statements after the date of this press release whether as a result of new information, future events or otherwise.