Curis Reports Second Quarter 2001 Results.

Attention Business & Science Editors

CAMBRIDGE, Mass.--(BW HealthWire)--Aug. 10, 2001

Curis, Inc. (NASDAQ: CRIS) today reported the results of its operations for the three- and six-month periods ended June 30, 2001.

Total revenues for the three-month period ended June 30, 2001 were $203,000 as compared to $7,000 for the same period in 2000. Total operating expenses for the three-month period ended June 30, 2001 were $20,057,000 as compared to $3,071,000 for the same period in 2000. Excluding non-cash amortization of intangible assets and stock-based compensation of $9,491,000, total operating expenses for the three-month period ended June 30, 2001 were $10,566,000.

Other income for the three-month period ended June 30, 2001 was $577,000 as compared to $549,000 for the same period in 2000. The net loss for the three-month period ended June 30, 2001 was $19,277,000 or ($0.61) per share as compared to a net loss of $2,514,000, or ($0.22) per share, for the three-month period ended June 30, 2000. Excluding non-cash amortization of intangible assets and stock-based compensation of $9,491,000, the net loss for the three-month period ended June 30, 2001 was $9,786,000, or ($0.31) per share.

Curis' cash and investments as of June 30, 2001 were $58,976,000, which included restricted securities of $1,016,000. Curis had 31,633,202 shares of common stock outstanding on June 30, 2001.

"With the addition of the Micromet and Elan corporate partnerships and the inclusion in the Russell 2000 and 3000, I think our shareholders are starting to see the fruits of our efforts to move Curis forward and generate real value for them," said Doros Platika, M.D., president and chief executive officer. "In addition, we believe joint ventures, such as the one we recently established with Elan, to be excellent vehicles to help us exploit our product pipeline because they offer access to necessary resources and allow us to share in any future successes of the venture."

"Curis also made progress in the second quarter with the announcement by Stryker that OP-1 has received marketing approval in Europe and Australia," added Dr. Platika. "Stryker has indicated that they expect to generate product sales prior to year end, and we look forward to that successful event for all of our shareholders. Stryker has indicated, however, that they are unable to predict when OP-1 for non-union fractures would be cleared for marketing approval in the United States, if at all."

"Our quarterly loss, excluding non-cash charges for the amortization of intangibles and stock-based compensation, continues to be in line with our previously reported guidance of approximately $10 million," said George A. Eldridge, vice president, finance, and chief financial officer. "Going forward, we are still projecting an annual net loss, excluding non-cash items, of less than $40 million."

"If the upfront cash payments from Micromet and Elan received in early July are considered, Curis' cash and investments are over $70,000,000," added Mr. Eldridge. "In addition, the Elan transaction also provides us with a line-of-credit to cover Curis' contributions to the Elan joint venture. With these combined resources, Curis has sufficient capital to continue operations into the second quarter of 2003."

On July 31, 2000, Creative BioMolecules, Inc. (formerly NASDAQ: CBMI), Ontogeny, Inc., and Reprogenesis, Inc., merged with and into Curis. For accounting purposes, Curis is deemed to be the successor to Creative, and the historical financial statements of Creative have become the historical financial statements of Curis. Because of this merger, comparisons between 2000 and 2001 amounts may not accurately reflect changes in Curis' business operations.

Curis is developing products based on technologies in the emerging field of regenerative medicine. Curis is combining insights gained through the study of developmental biology with high-throughput screening capabilities, proteins, cells and biocompatible materials to facilitate the development of new regenerative medicine therapies. For more information, please visit the Curis web site at http://www.curis.com.

This release contains forward-looking statements which address a variety of subjects including, for example, Curis' guidance on future operating and financial results and the feasibility of the joint venture structure as a vehicle to exploit Curis' product portfolio. Statements in this release that state Curis' or management's intentions, plans, expectations or predictions of future events, are forward-looking statements. The matters discussed in this release also involve risks and uncertainties. The following important factors and uncertainties, among others, could cause actual results to differ materially from those described in these forward-looking statements: dependence on significant collaborative partners, failure or delay in obtaining necessary regulatory approvals, the ability to protect indebtedness and liquidity and the ability to compete effectively. For a detailed discussion of these and other cautionary statements, refer to the filings made by Curis with the Securities and Exchange Commission, including, without limitation, Curis' Annual Report on Form 10-K for the year ended December 31, 2000 filed on March 30, 2001. The forward-looking statements contained herein represent the judgment of Curis, as of the date of this release, and Curis disclaims any intent or obligation to update such forward-looking statements to reflect any change in Curis' expectations with regard thereto or any change in events, conditions, circumstances on which such statements are based.

                              CURIS, INC.
                 CONSOLIDATED STATEMENTS OF OPERATIONS
                              (UNAUDITED)

                     Three months ended          Six months ended
                          June 30,                   June 30,
                    2001          2000         2001           2000

Revenues       $    202,638  $      7,471  $    451,803  $    677,858

Operating expenses
 Research and
  development     7,893,163     1,910,895    16,001,870     3,984,233
 General and
  administrative  2,672,291     1,083,207     5,254,682     2,595,826
 Stock-based
  compensation    3,667,670          --       7,499,109     3,139,478
 Amortization
 of intangible
 assets           5,823,660        76,411    11,647,321       118,172
  Total
   operating
   expenses      20,056,784     3,070,513    40,402,982     9,837,709

Net loss from
 operations     (19,854,146)   (3,063,042)  (39,951,179)   (9,159,851)

Interest and
 other income       737,291       590,046     3,231,211       888,942
Interest
 expense           (160,153)      (41,020)     (364,269)      (84,655)
  Total other
   income           577,138       549,026     2,866,942       804,287

Net loss       $(19,277,008) $ (2,514,016) $(37,084,237) $ (8,355,564)

Basic and
 diluted net
 loss per
 common share  $      (0.61) $      (0.22) $      (1.18) $      (0.73)
Basis and
 diluted
 weighted
 average common
 shares
 outstanding     31,560,390    11,471,672    31,497,604    11,369,372



                              CURIS, INC.
                      CONSOLIDATED BALANCE SHEETS
                              (UNAUDITED)

                                          June 30,       December 31,
                                            2001             2000
ASSETS

Cash, cash equivalents and
 marketable securities                 $  58,975,503    $  75,798,610
Property and equipment, net                8,680,986        7,866,591
Intangible assets                         85,498,343       97,145,664
Other assets                              13,507,248        1,871,125
Total assets                           $ 166,662,080    $ 182,681,990

LIABILITIES AND STOCKHOLDERS' EQUITY

Accounts payable and accrued expenses  $   7,781,533    $   7,741,465
Debt and capital lease obligations         7,639,536        6,126,759
Deferred revenue                          12,145,534                -
Total liabilities                         27,566,603       13,868,224

Total stockholders' equity               139,095,477      168,813,766
Total liabilities and stockholders'
 equity                                $ 166,662,080    $ 182,681,990