MethylGene Unveils HDAC Anti-Fungal Program.

MONTREAL -- MethylGene Inc. (TSX:MYG) a biopharmaceutical company, today disclosed in two posters, preclinical results demonstrating the potential use of an isotype-selective histone deacetylase (HDAC) inhibitor in human fungal infections at the Interscience Conference on Antimicrobial Agents and Chemotherapy (ICAAC) in Washington DC. The Company described data from in vitro and in vivo experiments, which demonstrate that:

--Development of resistance to azole antifungal drugs may occur by an HDAC mediated mechanism;

--MethylGene's inhibitors may be more selective for fungal HDACs than for the human ones: an important therapeutic prerequisite;

--Enhanced activity and potency of current azole treatments against key fungal pathogens occurs when these drugs are co-administered with MethylGene's HDAC inhibitor;

--MethylGene's HDAC inhibitor enhances the azole susceptibility of otherwise drug-resistant fungi;

--MG3290, when co-administered with ketoconazole (an azole), significantly decreases the extent of fungal infection and increases animal survival in a dose dependent manner; and

--A lower dose of azoles can be given, when co-administered with MethylGene's HDAC inhibitor. This may reduce the potential for adverse azole drug to drug interactions.

"We believe that our compounds specifically target fungal HDACs. This means that we may be able to develop a therapeutic allowing current azoles to be more effective," noted Donald F. Corcoran, President and CEO of MethylGene, "These experiments further validate our approach of discovering and developing novel HDAC isotype-selective inhibitors. We continue to aggressively push this program forward with the goal of identifying a clinical candidate over the next 12-18 months."

Unlike the other comparator HDAC inhibitors tested, MethylGene's HDAC inhibitors are: i) able to penetrate pathogenic fungi, and ii) more specific against their targets. In addition, it appears in vitro that co-administration of MethylGene's HDAC inhibitors with certain azoles is effective against fungi typically insensitive to azole treatment alone.

Details regarding these experiments can be found in two posters, available on MethylGene's web site, presented at ICAAC entitled, "Synergism of Histone Deacetylase (HDAC) Inhibitors with Ketoconazole in Candida albicans and Candida glabrata. Relationship to Their Effects on HDAC Activity in Protoplasts" (Abstract M-2154) and "Synergism of Histone Deacetylase (HDAC) Inhibitors with Ketoconazole in Aspergillus fumigatus. Relationship to Inhibitory Effects on HDAC Activity in Protoplasts" (Abstract M-2165)

About Fungal Infections

Serious infections with yeasts and other fungi often occur in hospital settings as a complication in immunocompromised patients. Fungal infections are commonly treated with a class of drugs called azoles. However, not all human fungal pathogens are susceptible to azole antifungal medications and resistance is an increasing problem. Infections caused by Candida and Aspergillus are especially common and difficult to manage medically. Aspergillosis has a high mortality rate and is an underserved market. In 2004, the market of systemic antifungal drugs was estimated to be $5 billion USD worldwide with azole sales being a major contributor to that market.

About MethylGene

MethylGene is a publicly-traded biopharmaceutical company focused on the discovery, development and commercialization of novel therapeutics in cancer and infectious disease. Two cancer product candidates are currently in clinical trials: MGCD0103, partnered with Taiho Pharmaceutical for certain Asian countries, and MG98, partnered with MGI Pharma for North America. MethylGene has an exclusive license agreement with Merck & Co. for the development and commercialization of small molecule beta-lactamase inhibitors to overcome antibiotic resistance. MethylGene has a portfolio of preclinical programs for its multi-targeted kinase and histone deacetylase (HDAC) inhibitors for both oncology and non-oncology indications, and continues to seek partnering opportunities in these areas. (www.methylgene.com.)

Except for historical information, this news release may contain forward-looking statements, which reflect the Company's current expectation regarding future events. These forward-looking statements involve risk and uncertainties,(which can be found in the Company's Annual Information Form dated December 31, 2004, and can be found on www.sedar.com) which may cause but are not limited to, changing market conditions, the successful and timely completion of clinical studies, the establishment of corporate alliances, the impact of competitive products and pricing, new product development, uncertainties related to the regulatory approval process and other risks detailed from time to time in the Company's ongoing quarterly and annual reporting.