J.M. Dutton & Associates Announces Investment Opinion: Neurobiological Technologies Buy Rating Issued By Dutton & Associates In Initiating Report.

Business Editors

NOTE TO EDITORS: The following is an investment opinion issued

by J.M. Dutton & Associates

EL DORADO HILLS, Calif.--(BUSINESS WIRE)--Sept. 22, 2003

J.M. Dutton & Associates initiates updated coverage of Neurobiological Technologies (Nasdaq:NTII) with a Buy rating and a $10 price target. The 19-page report by J.M. Dutton senior analyst Sherry Grisewood, CFA is available at www.jmdutton.com as well as from Bloomberg, Zacks, First Call, Multex, and other leading financial portals.

Memantine is in final review by the FDA. Forest Laboratories, NTII's U.S. marketing partner, submitted an NDA for Memantine for moderate-to-severe Alzheimer's disease (AD) in January 2003, the first in the U.S. for a moderate-to-severe disease AD indication. A FDA panel review meeting is scheduled for September 24, 2003. Since Memantine has a long safety record and there is no other approved medication for moderate-to-severe disease, we expect a favorable response by the FDA panel, followed by positive Prescription Drug User Fee Act response ("approvable" versus "non-approvable" letter) in October. Memantine is in advanced clinical trials for other indications in which the NMDA receptor pathway is implicated. In the diabetic neuropathy indication, regardless of Forest's final decision concerning Memantine, we believe physicians will likely prescribe the drug off-label once it is approved for the AD indication. NTII receives royalty revenue on any sale of Memantine on or off label, though the royalty rate has not yet been determined on off-label sales. Xerecept, NTII's product for peritumoral brain swelling, is progressing into pivotal trials. NTII is a low-risk vehicle by which to play a significant underserved multiple billion-dollar market, and with its operating leverage with FDA approval, we rate these shares a Buy.

Paul Freiman, NTII's CEO, is scheduled to speak Wednesday, September 24 from noon to 12:20 p.m. at the J.M. Dutton & Associates Healthcare & Biotechnology Conference at The Harvard Club in NYC. NTII joins 10 other attractive biotechnology companies from our coverage universe. The conference will be web broadcast live and professional investors can attend the conference. Information on the 11 companies presenting, conference attendance and schedule of live web broadcast at www.jmdutton.com/FrontPage_Articles/JMD_healthconference.html.

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