Cypros Pharmaceutical Receives Phase II SBIR Grant to Fund Development of Novel Glial-Cell Directed Compounds to Treat Neurological Disorders.

CARLSBAD, Calif.--(BW HealthWire)--April 28, 1999--

Cypros Pharmaceutical Corp. (AMEX:CYP) announced today that it has received a $750,000 Phase II Small Business Innovation Research ("SBIR") Grant from the National Institutes of Health (the "NIH") to fund the development of its novel compounds to protect the brain from ischemic injury.

These agents block the release of the excitotoxins, glutamic and aspartic acid, from glial cells in the brain, a process that occurs after a stroke or head injury. This grant to the company continues the NIH's support of the further development of these drugs previously funded under a Phase I SBIR grant to the company.

A great deal of interest has focused on developing neuroprotective drugs that inhibit the release of the excitotoxins, glutamic acid and aspartic acid, from neurons. Clinical development efforts by other companies of these drugs have not been successful. Glial cell swelling is a later stage event in stroke and head injury that may be more relevant to treatment interventions which can be of therapeutic value in a range of acute neurologic disorders.

The Cypros compounds being supported by the grant are high potency inhibitors of swelling-induced, excitotoxin release from glial cells and have been shown to be effective in pre-clinical models of stroke. Glial cells are increasingly being recognized for their important role in supporting brain function.

Commenting on the announcement, Paul J. Marangos, chief executive officer of the company and the principal investigator on the grant, said, "This grant will enable the further development of our glial excitotoxin release inhibitors, a group of compounds that represent a novel approach to the treatment of neurological disorders. We are pleased to have the continued support of the NIH on this project."

Cypros Pharmaceutical is engaged in the development and marketing of drug products for the hospital market. The company is pursuing a diversified strategy of marketing approved drugs and developing small molecule therapeutics that protect cells from ischemic injury.

This news release contains forward looking statements which involve risks and uncertainties. Such statements are subject to certain factors which may cause the company's plans to differ. Factors that may cause such differences include, but are not limited to, the risks discussed in the company's Form 10-K for the fiscal year ended July 31, 1998 and the Risk Factors section of the company's Registration Statement No. 333-25661.