Cypress Bioscience Names Lisa Walters-Hoffert Executive Vice President and CFO.

Business Editors and Health/Medical Writers

SAN DIEGO--(BW HealthWire)--Oct. 16, 2001

Cypress Bioscience Inc. (Nasdaq:CYPB), a biotechnology leader focused on providing products for the diagnosis and treatment of patients with fibromyalgia syndrome (FMS), today announced that it has appointed Lisa Walters-Hoffert to the position of executive vice president and chief financial officer.

Walters joins Cypress with more than 20 years of corporate finance and investment banking experience, most recently with Roth Capital Partners LLC, where she established a San Diego corporate finance office while overseeing the firm's healthcare and life sciences practice. Previously, she was co-head of Citicorp Securities Inc.'s corporate finance activities in Central America. From 1986 through 1991, she worked in the investment banking division of Oppenheimer & Co. Inc. in New York City, most recently as a senior vice president focused on biotechnology. Additionally, she held investment and commercial banking roles at Chemical Bank.

"We are delighted to have someone of Lisa's caliber join our growing senior management team," commented Jay D. Kranzler, chairman and chief executive officer. "Lisa brings us a wealth of expertise in developing financing strategies and accessing funding for life science companies. We look forward to her contribution as we advance our FMS initiatives including the start of clinical trials for our lead product, milnacipran."

Walters holds a BS in Management Sciences from Duke University, where she graduated magna cum laude. She is on the board of directors of the San Diego Venture Group and is a committee member of BIOCOM.

About Cypress Bioscience Inc.

Cypress is committed to be the innovator and commercial leader in providing products that improve the diagnosis and treatment of patients with FMS. FMS is a chronic and severely debilitating condition characterized by widespread pain and stiffness throughout the body accompanied by fatigue and poor sleep. The condition affects between 2-4% of the world's population and is second only to osetoarthritis as the most commonly diagnosed rheumatological disorder in rheumatology offices. In January 2001, the company began a strategic initiative into the treatment of FMS. In April 2001, Cypress announced the formation of a research collaboration with Georgetown University Medical School to develop technologies and products related to FMS. In August 2001, Cypress in-licensed the compound milnacipran, a drug that is believed to offer potential for treating FMS. The company plans to begin Phase II clinical trials with this compound in FMS early 2002. For more information about Cypress, visit the company's Web site at www.cypressbio.com.

This press release, as well as Cypress' SEC filings and Web site at http://www.cypressbio.com, contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could vary materially from those described as a result of a number of factors, including those set forth in Cypress Annual Report on Form 10-K and any subsequent SEC filings. In addition, there is the risk that Cypress may not be able to successfully develop or market milnacipran for the treatment of FMS; that Cypress may not be able to obtain appropriate regulatory approvals to begin Phase II clinical trials of milnacipran early next year; that Cypress will not be successful in identifying or developing products under the Georgetown agreement. Cypress undertakes no obligation to revise or update these forward-looking statements to reflect events or circumstances after the date of this press release, except as required by law.